GCM Resources Plc signed a contract framework agreement with China Gezhouba Group International Engineering Co. Ltd., its partner in the development of a proposed 2,000-MW minemouth coal-fired power plant at the Phulbari project in Bangladesh.

The agreement grants China Gezhouba an exclusive right for the engineering, procurement, construction and commissioning of the facility for an initial estimated cost of US$3.8 billion, according to a March 21 release.

The parties will now work toward finalizing the engineering, procurement and construction contract.

GCM's shares were down over 27% at market close March 22.