Tag: Summit Power International Limited

Summit Group Holds Iftar in Singapore for About 200 Migrant Workers, Including Bangladeshis

To show appreciation for migrant workers in Singapore, many of whom are Bangladeshi, Summit Power International Limited (“SPIL”) has hosted a breaking of fast (Iftar) for about 200 workers during the holy month of Ramadan.

Mr Muhammed Aziz Khan, PBM (centre), Founder Chairman of Summit Group, broke fast with migrant workers in Singapore, many of whom are Bangladeshi nationals
Mr Muhammed Aziz Khan, PBM (centre), Founder Chairman of Summit Group, broke fast with migrant workers in Singapore, many of whom are Bangladeshi nationals

Mr Muhammed Aziz Khan, PBM, the Founder Chairman of the Summit Group, broke fast with the workers at a workers’ dormitory in Space@Tuas, on 20 March 2024. Another 200 meals were provided for Muslim workers who were not able to attend the event physically.

SPIL also presented gifts to 1400 workers. Appreciation cards and crafts – prepared by about 50 students – were also presented to the workers at the dormitory. The students are from the Big Heart Student Care Services at Zhangde Primary School and the German European School Singapore (“GESS”) in Singapore. The cards and crafts were presented by teachers from GESS on behalf of the students.

This is the first Singapore Iftar event sponsored by SPIL, the Singapore-headquartered parent of Bangladesh’s largest private sector power generation company.

Besides Iftar, SPIL is also engaged in other corporate social responsibility (“CSR”) efforts in Bangladesh, including charity donations for neuro-divergent children, participating in UNICEF initiatives to help school dropouts, as well as supporting scientific research for nutrition and online education, among others.

Mr Muhammed Aziz Khan, PBM said, “Throughout the years, social responsibility remains a core principle of the Summit Group. Bangladeshi nationals comprise a significant number of the migrant workers in Singapore. This year’s Iftar that we sponsored in Singapore underscores our efforts to give back.”

“I am touched that young students from the two schools have expressed their appreciation to the migrant worker community in Singapore,” he added.

Mr Muhammed Aziz Khan, PBM, a Singaporean of Bangladeshi origin, was awarded the Public Service Medal (COVID-19) in October 2023 for engaging and helping Bangladeshi workers who were isolated in local dormitories during the pandemic.

Ms Patricia Amorim and Ms Marieke Bink, teachers at GESS, said, “We were thrilled to have collaborated with students of Big Heart for a meaningful card-making activity, bringing together our Grade 6-8 students with younger brothers and sisters from Big Heart to create heartfelt messages for migrant workers. This event not only fostered creativity but also facilitated genuine interactions between the students as they shared stories and ideas. The cards produced are a beautiful testament to their teamwork and compassion, showcasing the power of community and the importance of supporting those who contribute so much to our society.”

Shaina, a representative of Big Heart Student Care, said, “We are delighted to partner with the German European School Singapore for a meaningful initiative aimed at giving back to the community. Last Friday, students gathered to create heartfelt cards for migrant workers, expressing gratitude and appreciation for their vital contributions to Singapore’s growth and development. This significant event not only instilled a deep sense of gratitude in the students but also helped foster new friendships and lasting memories. It was a powerful reflection of the true spirit of multiculturalism and inclusivity—values that have brought us together and been instrumental in Singapore’s success over the past 60 years.”

About Summit Power International Limited (“SPIL”)

SPIL is the largest Independent Power Producer (IPP) in Bangladesh, reflecting 17% of the country’s total private installed capacity and 10% of total installed capacity. Summit owns and operates a total of 18 power plants. It also operates Bangladesh’s second Floating Storage and Regasification Unit (FSRU) and LNG import terminal with daily regasification capacity of 500 million cubic feet.

SPIL’s partners include JERA, Mitsubishi Corporation and Taiyo Insurance Company of Japan and GE of the USA. In July, 2023, Denmark’s Copenhagen Infrastructure Partners (CIP), Copenhagen Offshore Partners (COP) in association with Summit Group, submitted a foreign direct investment proposal valued at USD 1.3 billion to develop the country’s first 500 MW utility-scale offshore wind energy project.

SPIL is the leading infrastructure conglomerate in Bangladesh with diversified interests in power generation, energy, telecommunications, ports and real estate.

Learn more at: www.summitpowerinternational.com  

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Isaac Tang
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summit@wer1.net

Summit Group Responds to White Paper Citing Governance Issues in Bangladesh’s Power and Energy Sector

Summit Group, Bangladesh’s largest private sector power generation company, has issued clarifications in response to a recent draft of a government White Paper, and said it welcomes transparency and remains committed to the highest levels of corporate governance and corporate social responsibility (CSR) in the country.

Bangladesh media have reported widely on a draft of the ‘White Paper on the State of the Bangladesh Economy’ released in recent weeks by the interim government led by the Honourable Chief Adviser Dr. Muhammad Yunus. The document said Bangladesh’s power and energy sector faced challenges such as excess capacity, dependence on imports of gas and under-development of domestic natural gas resources.

Summit Power International Limited (SPIL), the Singapore-registered parent of Summit Corporation Limited (“SCL”) – the leading foreign direct investor in Bangladesh’s power sector – has responded to statements in White Paper which referred to SCL’s assets or subsidiaries.

1) The draft White Paper referred to Summit Group as being one of the “selected large conglomerates” which enjoyed “exemptions on project income” and “exemption on income arising from power generation”.

SPIL said these exemptions cited were part of a broader policy initiative that applied to the entire power and energy sector in the country. “The policy, i.e. Private Sector Power Generation Policy framed in 1996, designed to attract investment and meet Bangladesh’s critical energy needs, encompassed approximately 104 projects. These exemptions were not exclusive to Summit Group but were reflective of a sector-wide strategy to enhance Bangladesh’s energy capacity to ensure sustainable development,” SPIL said.

2) The “Other Common Malpractice” section in the White Paper alleged that contract conditions were changed after it was awarded, and singled out the Summit Meghnaghat 335 dual fuel power plant for switching from heavy fuel oil (“HFO”) to high-speed diesel (“HSD”) without changing capacity payment or heat rate as an example.

The Bangladesh Petroleum Corporation, the supplier of energy oil, was unable to provide the specified oil under the original agreement and instead reached an understanding with the Bangladesh Power Development Board to supply alternative oil, SPIL said.

“In order to maintain operations and fulfil its commitments, Summit Meghnaghat was obliged to accept this change but remains prepared to accept oil in accordance with the original tender conditions,” SPIL said.

Through SCL, the Summit Group operates 18 power plants with a combined generation capacity of 2,255MW or approximately 17% of the total installed private power generation capacity in the country of 173 million people.

3) The White Paper listed Summit Power Limited among 83 companies listed on the Dhaka Stock Exchange that had been “unfairly excluded” from certain regulatory activities, and said market rigging was endemic in the domestic equity market.

“Summit Power Limited has always conducted its affairs with the highest levels of corporate governance. Its Board of Directors comprises eminent and well-respected corporate figures. At no time has the company ever engaged in market rigging,” SPIL said.

4) Regarding Bangladesh’s second Floating Storage and Regasification Unit (“FSRU”), which Summit Group operates, the White Paper alleged public funds were misused because Summit supplied LNG at a premium while natural gas reserves were available with the Bangladesh Oil, Gas and Mineral Corporation (“Petrobangla”).

SPIL said that Summit’s FSRU was not responsible for the supply of gas and, accordingly, has not imported or supplied any gas to date. The long-term supply contract signed between Summit Oil and Shipping Company Limited and Petrobangla was at the lowest price of all contracts awarded at the time, including for OQ Trading and Excelerate Energy (“Excelerate”). In any event, Summit has not yet imported any gas under the long-term supply contract.

Further, Summit’s FSRU did not receive any special exemptions, and its daily tariff/charter rate is lower than that of the Moheshkhali Floating LNG owned by Excelerate, the only other FSRU in Bangladesh. The incentives referenced were part of an industry-wide framework that applies to both Excelerate and Summit’s FSRU projects.

“As a responsible corporation with a track record of providing energy and power to Bangladesh, Summit Group has always respected and adhered to the laws of both Bangladesh, where SCL operates, as well as Singapore, where SPIL is domiciled,” SPIL said. “We are dedicated to contributing meaningfully to Bangladesh’s growth and prosperity. Our operations in Bangladesh have consistently adhered to all regulations, and we take pride in upholding the highest standards of integrity and governance,” SPIL said.

“Being a dependable partner in nation building, we remain open to dialogue with all stakeholders,” it added. “We invite committee members preparing the White Paper to engage and seek clarification where needed. As a substantial foreign direct investor, the Summit Group has always conducted its affairs in a transparent manner while striving to support the long-term development of Bangladesh,” it added.

About Summit Power International Limited (SPIL)
SPIL is the largest Independent Power Producer (IPP) in Bangladesh, reflecting 17% of the country’s total private installed capacity and 7% of the country’s total installed capacity. Summit owns and operates a total of 18 power plants with a combined generation capacity of 2,255MW. It also operates Bangladesh’s second Floating Storage and Regasification Unit (FSRU) and LNG import terminal with daily regasification capacity of 500 million cubic feet.

SPIL is a privately-held Singapore-registered company that is 78%-owned by the family of Mr Muhammed Aziz Khan. In 2016 SPIL acquired Bangladesh-registered Summit Corporation Ltd (SCL) in a transaction that was financed primarily by International Finance Corporation, the World Bank’s private sector arm. SCL holds various infrastructure assets in Bangladesh. In 2019, JERA Co., Inc., Japan’s largest power generation company, acquired a 22%-stake in SPIL and remains its second largest shareholder to date.

Learn more at: www.summitpowerinternational.com   

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Email: summit@wer1.net