Business
Progress Update
Progress Update.
About this update from Gcm Resources Plc
[{"type":"text","content":"\n Asia Energy PLC\n18 April 2006\n\n Asia Energy Plc ('Asia Energy' or the 'Company')\n\n\n\n Phulbari to add one per cent to Bangladesh GDP\n\n\n\nLondon, 18 April 2006 - Asia Energy PLC's Phulbari Coal Project ('the Project')\nwill generate more than US$21 billion in economic benefits to Bangladesh over\nits 30 year life and add one per cent a year to Gross Domestic Product (GDP),\naccording to a new report.\n\n\n\n'The direct effect on GDP is expected to be US$7.8 billion over the life of the\nProject,' the report by international professional services company GHD said. '\nThe indirect or multiplier effects are expected to be US$13.7 billion. This\ngives a total GDP increase of US$21.4 billion.'\n\n\n\n'In summary, the mine and power station development is expected to contribute up\nto an additional one per cent to GDP. This represents an average of US$0.7\nbillion addition to GDP per year,' the report said.\n\n\n\nGHD (http://www.ghd.com.au) has extensive experience in working on and\nevaluating major infrastructure projects and was commissioned to carry out the\nreport by Asia Energy PLC ('Asia Energy' or 'the Company') as part of the\nBanking Information Memorandum currently being finalised to finance its planned\n15 million tonnes per annum coal mine in Phulbari, Northwest Bangladesh.\n\n\n\nAsia Energy has also submitted an unsolicited proposal to build a 500 MW coal\nfired power plant which could be later increased to 1,000 MW.\n\n\n\n'This report underlines the exciting potential of the Phulbari Coal Project and\nits related infrastructure both for Bangladesh and for its people,' said CEO\nSteve Bywater. 'The report explains how the Project will have a hugely positive\nimpact on the economy.'\n\n\n\n'The Project is expected to contribute significantly to the development of the\nBangladesh economy by adding up to 10 per cent to the country's energy supply by\n2015,' GHD said. 'The productivity and business growth impacts will be very\nsignificant. The US$13.7 billion indirect impact over the life of the Project is\nlikely to materially underestimate the benefit.'\n\n\n\nGHD used a multiplier of 1.75 for the indirect impacts, which it said was\nconservative, given that multipliers in terms of spin-off industries and service\nsector growth for similar large scale projects around the world range from 1.5\nin highly develo...