Summit Group, Bangladesh’s largest private-sector power generation company, has responded to allegations raised in a draft White Paper issued by the interim government, emphasizing its commitment to transparency, corporate governance, and the sustainable development of Bangladesh.
The White Paper, titled “White Paper on the State of the Bangladesh Economy”, was released recently by the interim government led by Chief Adviser Dr Muhammad Yunus.
The document highlighted challenges in the power and energy sector, including excess capacity, reliance on gas imports, and the underdevelopment of domestic natural gas resources.
Clarifications on Tax and Policy Incentives
The draft White Paper referred to Summit Group as one of the “selected large conglomerates” benefiting from exemptions on project income and power generation earnings.
In its response, Summit Power International Limited (SPIL), the Singapore-based parent company of Summit Corporation Limited (SCL), clarified that these exemptions were part of a broad, sector-wide policy designed to attract investment in Bangladesh’s critical energy infrastructure.
“The policy encompassed approximately 104 projects across the energy sector. These exemptions were not exclusive to Summit Group but were integral to a national strategy aimed at enhancing Bangladesh’s energy capacity for sustainable development,” SPIL stated.
Response to Contractual Allegations
The White Paper also alleged that contract terms for Summit Meghnaghat’s 335 MW dual-fuel power plant were unfairly altered to allow a switch from heavy fuel oil (HFO) to high-speed diesel (HSD) without adjusting capacity payments or heat rates.
SPIL explained that the change was necessitated by the Bangladesh Petroleum Corporation’s inability to supply the agreed fuel. “To maintain operations and fulfill its commitments, Summit Meghnaghat adapted to the alternative fuel arrangement, but it remains ready to revert to the original agreement conditions when possible,” SPIL said.
Corporate Governance and Stock Market Allegations
Summit Power Limited was listed among 83 companies allegedly “unfairly excluded” from regulatory oversight in the Dhaka Stock Exchange. The White Paper also alleged endemic market manipulation in the equity market.
“Summit Power Limited has always upheld the highest standards of corporate governance. Its Board of Directors includes highly respected corporate leaders. The company has never engaged in market rigging or any unethical practices,” SPIL affirmed.
Floating Storage and Regasification Unit (FSRU) Operations
The White Paper further criticized the operations of Summit’s second Floating Storage and Regasification Unit (FSRU), alleging misuse of public funds and premium-priced LNG supplies despite available domestic gas reserves.
SPIL refuted these claims, stating that Summit has not imported or supplied any LNG to date. “The long-term supply contract between Summit Oil and Shipping Company Limited and Petrobangla was awarded at the lowest price compared to similar agreements. Summit’s FSRU operates without special exemptions, and its daily tariff is lower than the only other FSRU in the country, Moheshkhali Floating LNG,” the company clarified.
Commitment to Bangladesh’s Development
Through its subsidiary, SCL, Summit Group operates 18 power plants with a combined capacity of 2,255 MW, accounting for 17% of Bangladesh’s private power generation. SPIL reaffirmed its commitment to transparency and the nation’s economic growth.
“Summit Group has always respected and adhered to the laws of Bangladesh and Singapore, where SPIL is domiciled. Our operations reflect the highest standards of integrity and governance,” the statement read.
SPIL also welcomed further engagement with the committee preparing the White Paper. “We invite the committee to seek clarifications where needed. As a substantial foreign direct investor, we remain committed to supporting Bangladesh’s long-term development and remain a dependable partner in nation-building,” it concluded.
