Business
Second Joint Venture with POWERCHINA
Second Joint Venture with POWERCHINA.
About this update from Gcm Resources Plc
[{"type":"text","content":"\n \nRNS Number : 9957S GCM Resources PLC 15 March 2019 \n\n15 March 2019\n \nGCM Resources plc\n(\"GCM\" or the \"Company\")\n(AIM:GCM) \n \nSecond Joint Venture with POWERCHINA\n \nGCM Resources plc (\"GCM\" or the \"Company\"), an AIM quoted mining and energy company, is pleased to announce that it has agreed a second Joint Venture Agreement (the \"Second JV Agreement\") with Power Construction Corporation of China, Ltd (\"POWERCHINA\") for the development of an additional 2×1,000MW Coal-Fired Power Plant Project (the \"Additional Power Plant\") at the site of the Company's proposed coal mine in North-West Bangladesh. The Second JV Agreement is in addition to the initial Joint Venture agreement signed with POWERCHINA as announced on 17 January 2019 (the \"First JV Agreement\"). \n \nThe Additional Power Plant proposed with POWERCHINA is part of the Company's broader strategy to generate 6,000MW of low-cost electricity for the Bangladesh market utilising domestic coal (the \"Project\"). The Project, providing an estimated $14.5bn in foreign investment, is anticipated to be a catalyst for local, regional and national growth. \n \nAbout POWERCHINA\nPOWERCHINA is a central government owned key enterprise of the People's Republic of China, and is a world-leading integrated engineering construction group. In 2018, POWERCHINA ranked 182nd among the Fortune Global 500, 2nd among the top 150 global engineering design companies, 41st among the Top 500 Enterprises of China and 6th among the world's 250 largest global contractors, according to Engineering News-Report. POWERCHINA has 373 overseas offices or branches in 116 countries and business operations in 125 countries and regions. POWERCHINA has completed power plants with 242.75GW of installed capacity and has majority ownership of power plants with 14,402.4MW around the world.\n \nIn Bangladesh, POWERCHINA is an investor in and contractor for three large projects, namely, two coal fired power plants with a combined capacity of 1,670MW and a joint venture for the Dhaka Elevated Expressway. \n \n \nSecond JV Agreement\nThe terms of the Second JV Agreement are identical to the First JV Agreement. GCM shall be the lead party on a newly created joint venture company (\"JVC2\") to own the A...