Staff Correspondent

Summit Group has issued a clarification in response to the allegations made by the National Committee for the Preparation of the White Paper on the State of Bangladesh Economy.

The group said that the draft white paper refers to Summit Group as a “special large business group” that is said to have benefited from “project income exemption” and “income derived from power generation exemption.”

In a statement, Summit Group clarified that these exemptions are part of a broader policy initiative applicable to the country’s power and energy sector.

It noted that the “Bangladesh Private Power Generation Policy”, which was originally formulated in 1996, was designed to attract investment to address the country's critical energy needs.

The policy led to the development of approximately 104 projects.

Summit emphasised that the concessions mentioned in the white paper were not exclusive to Summit Group but were part of a comprehensive strategy aimed at ensuring the sustainable development of the energy sector and increasing the country’s energy capacity, it said.

Regarding the section of the White Paper that addresses “Other Common Malpractice,” which alleges that the terms and conditions of the agreement with Summit were altered—specifically mentioning the conversion of Summit Meghnaghat 335 Dual Fuel Power Plant from Heavy Fuel Oil (HFO) to High-Speed Diesel (HSD) fuel without any change in capacity payment or heat rate—Summit provided an explanation.

Summit explained that the government’s fuel supplier, Bangladesh Petroleum Corporation (BPC), had failed to provide the agreed-upon fuel oil, and as a result, an agreement was made with the Bangladesh Power Development Board (BPDB) to supply alternative fuel (HSD).

Summit said that this decision was taken to ensure the continued operation of the plant and to meet the promised electricity generation. As per the original tender terms, Summit is still willing to accept Heavy Fuel Oil if supplied.

In response to the white paper’s allegation that Summit, which operates Bangladesh’s second Floating Storage and Regasification Unit (FSRU), is supplying LNG at high prices, leading to the misuse of government funds, Summit clarified that its FSRU is not involved in gas supply. Summit has not imported or supplied gas.

The long-term gas supply agreement between Summit Oil and Shipping Company Limited and Petrobangla was the lowest value compared to other agreements at the time, such as those with Oman’s OQ Trading and US-based Accelerate Energy, Summit Group claimed.