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Sembcorp's India power arm wins Bangladesh power supply tender
THE Indian power arm of Sembcorp Industries has won a tender from Bangladesh to supply electricity for over 15 years.
Sembcorp Gayatri Power - a wholly owned subsidiary of 93.73 per cent-owned power producer Sembcorp Energy India (SEIL) - has got letters of intent from the Bangladesh Power Development Board, according to an announcement on the Singapore Exchange website on Monday.
The supply of 250 megawatts of power to Bangladesh is expected to start "upon completion of procedural requirements and relevant government approvals", Sembcorp said.
The utilities, marine and urban development group added that the outcome of the tender is not expected to have a material impact on the earnings per share and net assets per share for the year to Dec 31.
The Bangladesh Power Development Board launched a tender in February for two-phase short-term and long-term gas or coal power supply.
SEIL has two thermal power plants in Andhra Pradesh, with four 660-megawatt super-critical coal-fired units and a total installed capacity of 2.64 gigawatts.
According to the board's request for proposals, the successful bidder must be incorporated in India and the power purchase agreement should be executed within 30 days from the letter of intent being issued, or at any later date as notified by the agency.
SEIL managing director Vipul Tuli said in a media statement: "We are pleased to have emerged as the successful bidder in this tender, and look forward to commence supply of power under a tariff that is competitive for Bangladesh and sustainable for our company.
"Our participation and success in this bid fits into SEIL's strategy of providing cost-competitive and reliable power, while prudently contracting our balance open capacity at viable tariffs."
Sembcorp closed down by S$0.01, or 0.38 per cent, to S$2.65, before the news.