GCM and POWERCHINA Inks US$4bn Power Deal

Transcription

1 17 th January, 2019 Press Release GCM and POWERCHINA Inks US$4bn Pwer Deal Dhaka, Bangladesh-17 January 2019: GCM Resurces plc and POWERCHINA (a Peple s Republic f China Central Gvernment State Owned Enterprise) signed a Jint Venture Agreement and EPC Cntract fr the prpsed develpment f 2,000MW f mine muth cal fired pwer plants with an apprximate investment f US$4bn in Dinajpur District, Nrth-West Bangladesh. The Agreement and Cntract were signed in a ceremny rganised at the Radissn Blu Water Garden Htel Dhaka. The dcuments were signed by Mr. Md. Badruzzaman and Mr. Md. Firz Zaman n behalf f GCM and Mr. Xing Li Xin and Mr. Pan Deng Yu n behalf f POWERCHINA. Datuk Michael Tang PJN (Executive Chairman f GCM), Engr. Rashed Mahmud (Managing Directr, DIPON Grup), Mr Anis Khan (Managing Directr, Mutual Trust Bank), Mr. Ding Zheng Gu (Chairman, PwerChina Internatinal), Mr. Lin Wei Qiang (Chairman, Chinese Chamber f Cmmerce Bangladesh) and Mr. Xu Jiang Lng (Vice President, PwerChina Eurasia) were witnesses. The prpsed Prject, which is part f a brader strategy by GCM t generate 6,000MW f lw cst electricity fr the Bangladesh market utilising dmestic cal, prviding an estimated US$12.5 billin in freign direct investment, at n capital cst t the Gvernment and is in line with the Gvernment s energy develpment master plan and electin manifest f current party in pwer, being t pursue the lgical use f the cuntry s cal resurces. The pwer plant utilising ultra supercritical technlgy with its high-energy efficiency enables maximum pwer t be generated frm the cal, prvides lwer levels f emissins and delivers the lwest cst f pwer. The Prject wuld deliver a sustainable pwer slutin fr the develpment and prgress f Bangladesh and wuld have a substantial multiplier effect n the cuntry s ecnmic and scial advancement. This includes thusands f new jbs, new industries, mre business and direct psitive impact n the develpment f Rangpur Divisin. The Prpsal is fr the pwer plants t be pwered by cal frm a prpsed adjining pen pit mine where the pwer plants will be lcated. Technical studies fr bth the pwer plants and mine have been cmpleted and are favrable. Mre detailed benefits cming frm large-scale pwer generatin based n lcal cal: Saves n significant FOREX utflw (als reducing current fuel imprts). Frees limited natural gas fr mre strategic uses such as prductin f fertiliser and petrchemicals. Creates up t 50,000 new jbs in Bangladesh. Prvides security f supply and reduces expsure t wrld market frces (Natinal Security). Develps the skills and experience in the Bangladesh wrkfrce and will enable mining appraches t be translated t discver and develp ther cal depsits. 1

2 Alleviates pverty in the Dinajpur District and surrunding areas. Prvides in excess f US$20 billin t GDP. Prvides in excess f US$7 billin in taxes / ryalties t the Gvernment. Stimulates develpment in the Dinajpur regin - husing, schls, medical facilities, cmmunity centres, utility supplies, new and supprting industries related t cal and cprducts frm the mine. Enhances fd security by imprving agricultural utput thrugh prviding all-year irrigatin water, farm management training and imprved inputs and prduct marketing. Enables develpment f varius industries, eg. cement, glass, cnstructin materials, ceramics, pttery and bricks frm valuable industrial c-prducts. Allws the synergy between the Barapukuria and Phulbari cal mines t be appreciated. Will prvide the lwest tariff pwer when utilised in mine-muth pwer plants, i.e. eliminates cstly cal handling and transprt csts. Prvides security f supply all year rund as based n lcally extracted cal. Mine muth pwer in the cal rich but industrially underdevelped nrthern Bangladesh can bring significant reginal and natinal benefits. It can ptentially prvide the cheapest electricity in the cuntry aviding the need fr lng haul transprtatin and handling f cal as required by ther planned cal pwer plants in Bangladesh which are mstly relying n imprted cal. Mr. M. Anwarul Islam (GCM s General Manager Envirnment and Cmmunity) delivered a speech cnfirming the huge ptential benefits cming frm the Prject and that the envirnmental and scial impacts have been studied in detail and can be effectively managed. Bangladesh energy expert, Mr Mllah Amzad Hssain, spke abut the energy and pwer situatin in the cuntry and hw large-scale pwer generatin utilising dmestic cal will assist in meeting the gvernment s targets fr pwer generatin and industrial develpment. Datuk Michael Tang PJN, Executive Chairman f GCM, said The JV Agreement and EPC Cntract are key milestnes fr the develpment f the 2 nd prpsed 2,000MW Pwer Plant Prject at the mine site and aligns with GCM s strategy t present a hlistic pwer slutin t the Gvernment f Bangladesh which can generate 6,000MW at the lwest cst fr the cuntry. The Phulbari Cal and Pwer Prject will deliver a significant multiplier effect n the natin s advancement. Mr. Ding Zheng Gu, Chairman f PwerChina Internatinal Grup Limited, stated: POWERCHINA is delighted t be a partner with GCM t deliver an integrated mine and pwer plant fr the peple f Bangladesh. Cmpleting the JV Agreement and EPC Cntract were very imprtant steps in prgressing the cmbined Prject. As the Pwer Plant cntractr, we are cmmitted t a psitive relatinship with the cmmunity and t cnstruct an envirnmentally friendly pwer plant fr the benefit f the lcal peple. POWERCHINA has made a strng cntributin t Bangladesh, having cmpleted 10 infrastructure prjects including 5 pwer plants ttaling US$750m and 12 current prjects amunting t US$4.6 billin including tw cal fired pwer plants f 1,670MW. We lk frward t wrking with Datuk Michael Tang PJN and his team t deliver a wrld class prpsal that is beneficial and acceptable t the Gvernment f Bangladesh. 2

3 GCM had earlier n signed a Jint Develpment Agreement fr a separate 2,000MW f cal fired pwer plants in the same area with anther China State Owned Enterprise. The cmbined investment will be fully funded by GCM and its partners, i.e. cmplete freign investment withut requiring lcal funding. Hwever, GCM wuld als invite and welcme the GB r ther lcal parties t participate in the Prject. This prpsal will be ne f the largest direct freign investment int the cuntry. GCM has invested sme US$60 millin t-date fr its Bangladesh prjects. GCM is a mining and energy cmpany, listed n the Lndn Stck Exchange AIM market. GCM aims t becme a lw cst electricity prducer and cal mine peratr in Bangladesh. POWERCHINA is a central gvernment wned key enterprise f the Peple's Republic f China, and is a wrld-leading integrated engineering cnstructin grup. In 2018, POWERCHINA ranked the 182 nd amng Frtune Glbal 500, and the 2 nd in the Tp 150 Glbal Design Firms, and the 6 th in the wrld's 250 largest glbal cntractrs accrding t Engineering News-Recrd. By the end f 2018, POWERCHINA had set up 373 verseas ffices r branches in 116 cuntries, perating business in 125 cuntries and regins. POWERCHINA has cmpleted pwer plants with GW f installed capacity and has majrity wnership f pwer plants with 14,402.4MW arund the wrld. In Bangladesh, POWERCHINA is an investr in and cntractr fr 3 large prjects, namely, 2 cal fired pwer plants with a cmbined capacity f 1,670MW and a JV fr the Dhaka Elevated Expressway. A cmprehensive briefing sheet fr POWERCHINA and a lcality plan are attached. Mahmud Hafiz Media & Cmmunicatins Specialist GCM Resurces plc Phne: E Mail: mhafiz@gcmplc.cm 3

4 INTRODUCTION OF POWERCHINA As the wrld s largest pwer cnstructin enterprise with the mst integrated industrial chain, and cmmitted t the cnstructin f glbal energy surce and infrastructures. In 2018, Pwerchina ranked the 182 nd amng Frtune Glbal 500, and the 2 nd in the Tp 150 Glbal Design Firms, and the 6 th in the wrld's 250 largest glbal cntractrs accrding t Engineering News-Recrd. By the end f 2018, Pwerchina had set up 373 verseas ffices r branches in 116 cuntries, perating business in 125 cuntries and regins. By 2018, ttal installed capacity f Pwerchina s cmpleted pwer plants is GW, as majrity sharehlder, Pwerchina invested 14,402.4 MW arund the wrld. In the third cuntries, Pwerchina has Kamchay Hydrelectric BOT Prject in Cambdia (194.1MW), in Las, they have cmpleted Nam Ngum 5 Hydrpwer BOT Prject in Las (120MW) and Nam Ou River Basin Cascade Hydrpwer Prject (540MW), Upper Marsyangdi A Hydrpwer Statin in Nepal (50MW), Kasim 1320 MW Cal Fired Pwer Plant and Dawd 49.5MW Wind Pwer Plant in Pakistan, etc. As ne f the mst successful Chinese Cmpanies in Bangladesh, Pwerchina invests 3 prjects either jintly r independently, including SS Pwer I 1320 MW Cal Fired Pwer Prject, Barisal 350 MW cal-fired Pwer Plant, and Dhaka Elevated Expressway. Regarding cntracting business In Bangladesh, Pwerchina has cmpleted 10 prjects amunting t USD 750 millin, including Shikalbaha 150MW Peaking Pwer Plant, Chapai Nawabganj 100MW HFO Pwer Plant, Peaking pwer plant like Baghabari 50MW, Titas 50MW, and Kdda 50MW. There are 12 nging amunts t USD 4.6 Billin, Including Padma multipurpse Bridge River Training Wrks which is the biggest river training wrks in the wrld; Dhasherkandi Sewage Treatment Prject is the largest sewage treatment prject in Suth Asia in terms f capacity fr single plant. Bangladesh is Pwerchina s cre market in the Suth Asian regin, where attentive market and brand cultivatin was undertaken fr decades. In recent years, Bangladesh has been enjying a stable scial and ecnmic develpment. With infrastructures cnstructin being in full swing, demand fr pwer and energy is intensified, Pwerchina made themselves ready t actively engage in infrastructure cnstructin and energy restructuring f Bangladesh, strive t cntribute mre t its scial and ecnmic develpment and the imprvement f peple's lives, ultimately cntributing t the dream f Snar Bangla.

5 Prject Lcatin Map 88 40'0"E 89 0'0"E 89 20'0"E NILPHAMARI LALMONIRHAT Saidpur Airprt 25 40'0"N RANGPUR 25 40'0"N Barapukuria Cal Mine & Pwer Statin DINAJPUR Phulbari Cal Area Prpsed Pwer Plant nm Khalaspir Cal Area 25 20'0"N I N D I A Dighipara Cal Area 25 20'0"N GAIBANDHA JAIPURHAT NAOGAON BOGRA 25 0'0"N 25 0'0"N 88 40'0"E 89 0'0"E 89 20'0"E Map Histry Universal Transverse Mercatr (UTM) Prjectin Prjectin Units Zne Spherid : UTM : Meters : 45 : WGS84 Parameters: Scale Factr Central Meridian Reference Latitude False Easting False Nrthing : : 87 : 0 : : 0 Date : 15 January Scale 10,000 5, ,000 20,000 nm - 1:322,666 Prpsed Pwer Plant Lcatin Lcatins f Interest Internatinal Bundary Meters Rad Netwrk Railway River Prpsed Site Lcatin