Project Financing of Summit Bibiyana Power Company Limited

Abstract

The process of using a non-recourse or limited recourse financial framework to fund or finance any long-term infrastructure, industrial projects, or public services is referred to as "project financing." Summit Group is Bangladesh's largest infrastructure company, with several business segments spanning electricity, shipping, and communications. Its power sector, which include both Turbine and Reciprocating Engine Divisions, have a total installed capacity of 1,941 MW. Project Bibiyana is a 341MW combined-cycle gas-fired power generation facility in Bangladesh's Habiganj district. Summit Bibiyana Power Company (SBPCL), a special purpose corporation established in 2010 under Bangladeshi regulations, conducted this project. Summit Power Limited, the parent business of SBPCL, is in charge of the firm. One GE 9 FA Gas Turbine Generator, one Heat Recovery Steam Generator, and one Steam Turbine Generator are used to set up this project. The main goal of this project is to construct and operate power plants for energy generation and distribution. IFC, World Bank Group, ADB, and Bangladesh's Department of Environment (DOE) have all accepted environmental and social principles for Project Bibiyana Power Plant. I have addressed the information I've received from working in a corporate atmosphere in the first section of the report and provided the idea of project financing of Summit Bibiyana Power Company Limited (SBPCL) as a whole along with the analysis of their past five years financial performance after project completion in subsequent sections of the report. This study provides information related to project finance, steps and different elements of the project finance, contracts and agreements, policies, project costs and assumptions present in the financial model of SBPCL, past five years financial performance, risks and challenges associated with project finance. A small survey is conducted on around 50 people outside the organization and all of the survey results are appropriately examined in the report. Finally, the entire study has been summarized and concluded. Therefore, this report is a study and findings on project finance which would provide individuals from different industries with information related to project finance and get better understanding of the elements associated with it.