JERA acquires a stake in Bangladesh's largest IPP Summit Power
- Oct 9, 2019 6:30 am GMT
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JERA - the joint venture of Japanese power groups TEPCO and Chubu Electric - has acquired a 22% stake in Summit Power, the largest Independent Power Producer (IPP) in Bangladesh for US$330m. Summit Power is a subsidiary of Bangladeshi conglomerate Summit Group, which operates 19 power plants with a combined capacity of around 1.8 GW, accounting for 12% of Bangladeshs power capacity. Summit Power also has 590 MW under construction and additional power projects in the pipeline.
The transaction marks an exit of the International Finance Corporation (IFC), its affiliate IFC Emerging Asia Fund, and United Arab Emirates-based EMA Power Investment. The two companies signed a Memorandum of Understanding (MoU) in May 2019 to develop a US$500m energy infrastructure project, including port facilities, near the town of Coxs Bazar in southeastern Bangladesh.