GCM and POWERCHINA Inks $4b JV power deal
GCM Resources plc and POWERCHINA signed a Joint Venture Agreement and EPC Contract for the proposed development of 2,000MW of mine mouth coal fired power plants with an approximate investment of US$4bn in Dinajpur District, North-West Bangladesh.
The Agreement and Contract were signed at the Radisson Blu Water Garden in Dhaka.
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 the state-owned Chinese firm POWERCHINA, POWERCHINA.
Datuk Michael Tang PJN (Executive Chairman of GCM), Engr. Rashed Mahmud (Managing Director, DIPON Group), Anis Khan (Managing Director Mutual Trust Bank), Ding Zheng Guo (Chairman, POWERCHINA International), Lin Wei Qiang (Chairman, Chinese Chamber of Commerce Bangladesh) and Xu Jiang Long(Vice President,PowerChina Eurasia)were witnesses.
The proposed Project, which is part of a broader strategy by GCM to generate 6,000MWof low cost electricity for the Bangladesh market utilising domestic coal, providing an estimated US$12.5 billion in foreign direct investment, at no capital cost to the Government and is in line with the Government's energy development master plan and election manifesto of current party in power, being to pursue the logical use of the country's coal resources.
The power plant utilising ultra supercritical technology with its high-energy efficiency enables maximum power to be generated from the coal, 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. This includes thousands of new jobs, new industries, more business and direct positive impact on the development of Rangpur Division. The Proposal is for the power plants to be powered by coal from a proposed adjoining open pit mine where the power plants will be located. Technical studies for both the power plants and mine have been completed and are favorable.