China's energy giant PowerChina International signed an agreement and a contract with a leading British resource exploration company GCM Resources to set up a coal-fired power plant in Bangladesh.
Both the Joint Venture (JV) deal and the engineering, procurement and construction (EPC) contract, were signed in a ceremony at the Radisson Blu Water Garden Dhaka hotel late on Thursday.
The documents were signed by Md. Badruzzaman and Md. Firoz Zaman on behalf of GCM and Xiong Li Xin and Pan Deng Yu on behalf of PowerChina.
GCM Executive Chairman Datuk Michael Tang PJN, Dipon Group Managing Director Engr. Rashed Mahmud, Mutual Trust Bank Managing Director Anis Khan, PowerChina International Chairman, Ding Zheng Guo, Chinese Chamber of Commerce Bangladesh Chairman Lin Wei Qiang and PowerChina Eurasia Vice President Xu Jiang Long witnessed the signing.
The plant would be set up in northwestern Bangladesh district Dinajpur, some 338 km away from the capital Dhaka.
The proposed project is part of a broader strategy by GCM to generate 6,000 MW of low cost electricity for the Bangladesh market utilizing domestic coal.
The power plant, with two units of a capacity of 1,000 MW each, will be built with ultra supercritical technology, which provides lower levels of emissions and delivers the lowest cost of power.
The project would deliver a sustainable power solution for the development and progress of Bangladesh and would have a substantial multiplier effect on the country's economic and social advancement, according to a statement issued by by the companies.
Ding Zhengguo, Chairman of PowerChina International, said they were delighted to be a partner with GCM to deliver an integrated mine and power plant for the people of Bangladesh.
"Completing the JV agreement and EPC contract are very important steps in progressing the combined project. As the power plant contractor, we are committed to a positive relationship with the community and to constructing an environmentally friendly power plant for the benefit of the local people," he said.
Michael Tang PJN, Executive Chairman of GCM, said: "The JV agreement and EPC contract are key milestones for the development of the 2nd proposed 2,000 MW power plant project at the mine site and aligns with GCM's strategy to present a holistic power solution to the government of Bangladesh which can generate 6,000 MW at the lowest cost for the country."
"The Phulbari Coal and Power Project will deliver a significant multiplier effect on the nation's advancement," he added.
PowerChina is an investor and contractor for three large projects in Bangladesh -- two coal-fired power plants with a combined capacity of 1,670 MW and a JV for the Dhaka Elevated Expressway.
