GCM Resources PLC entered into a second joint venture agreement with Power Construction Corp. of China Ltd., or PowerChina, for another power plant project at its proposed Phulbari coal mine in northwestern Bangladesh.
The terms of the second agreement are identical to the first one signed in January, under which GCM Resources will act as lead as part of a new joint venture company owning the operation.
Both PowerChina deals are in line with a November 2018 memorandum of understanding on the Phulbari development and power plants generating up to 4,000 MW.
GCM Resources said March 15 that the additional power plant project is proposed as part of a broader strategy to generate 6,000 MW of electricity for the Bangladesh market using domestic coal, with the company targeting about US$14.5 billion in foreign investment.
The second PowerChina project comprises two 1,000-MW, coal-fired power plants, with GCM Resources entitled to an 80% interest and PowerChina holding the remaining 20%. The deal has a term of 12 months and is subject to a definitive agreement.
GCM Resources will be responsible for obtaining approvals, while PowerChina will conduct a feasibility study and work to incorporate the project into the One Belt, One Road Initiative in China. Both parties will work on obtaining financing.