Sembcorp's First Thermal Power Plant in Bangladesh Commences Full Commercial Operation

Sembcorp Industries (Sembcorp) is pleased to announce that its Sirajganj Unit 4 combined-cycle gas turbine (CCGT) power plant in Bangladesh has successfully commenced full commercial operation. The approximately US$412M, dual-fuel power plant earlier began first-phase operations in single-cycle mode in October 2018. Now, the plant is fully operational in combined-cycle mode, signifying an important new milestone.

The Sirajganj Unit 4 CCGT project is Bangladesh’s first public-private partnership power plant backed by foreign investment. Located in Soydabad, Sirajganj, the state-of-the-art plant has a contractual capacity of 414 megawatts, and is primarily gas-fired, with high-speed diesel as its backup fuel. It was developed, and is owned and operated by Sembcorp North-West Power Company, a joint venture that is 71%-owned by Sembcorp Utilities and 29% by Bangladesh's state-owned North-West Power Generation Company. The plant supplies power to Bangladesh Power Development Board under a 22-year power purchase agreement.

Commenting on the opening, Sriram Narayanan, head of Sembcorp’s global gas & power business, said, “The successful completion of Sirajganj Unit 4, Sembcorp’s first power plant in Bangladesh, is a significant milestone for the Group. I would like to congratulate our team on the ground, and also thank our partner, North-West Power Generation Company, the government of Bangladesh, our lenders and the local community, for their valuable support. Now that the plant has come onstream, it is set to provide an efficient, reliable supply of energy to meet Bangladesh’s growing power demand, supporting the country’s development for years to come.”

The commencement of the plant’s full commercial operations is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2019.