GCM Resources PLC has signed a Joint Venture (JV) agreement and an Engineering, Procurement and Construction (EPC) contract with China’s state-owned POWERCHINA for the development of a 2,000 MW coal-fired power plant in Dinajpur. The power plant will be using domestic coal, in fact, it will be a mine-mouth power plant and the project is estimated to cost nearly $4 billion.
The agreement was signed on Thursday in a ceremony held at Radisson Blu Dhaka Water Garden hotel in the capital. On behalf of GCM Resources, Md Badruzzaman and Md Firoz Zaman signed the contract; while Xiong Li Xin and Pan Deng Yu signed it representing POWERCHINA.
The power plant is part of GCM’s broader strategy to generate 6,000 MW of low-cost electricity for the Bangladesh market using domestic coal, providing an estimated US$12.5 billion in foreign investment.
Datuk Michael Tang PJN, executive chairman of GCM Resources; engineer Rashed Mahmud, managing director, DIPON Group; Anis Khan, managing director, Mutual Trust Bank; Ding Zheng Guo chairman, POWERCHINA China International; Lin Wei Qiang, chairman, Chinese Chamber of Commerce Bangladesh; and Xu Jiang Long vice president, POWERCHINA Eurasia were present at the event, among many others.
Datuk Michael Tang PJN, the Executive Chairman of GCM, said “The JV Agreement and EPC Contract are key milestones”. The project will help the country to solve its energy crisis to a great extent, he added.
Mr. Ding Zheng Guo, Chairman of PowerChina International Group Limited said, “POWERCHINA is delighted to be a partner with GCM to deliver an integrated mine and power plant for the people of Bangladesh”.
Mr. M. Anwarul Islam, GCM’s General Manager said that, the project will be a milestone for Bangladesh considering that it will be operated using domestic coals only.