Confidence Cement associate wins a 660MW power plant contract
A consortium led by Confidence Power Holdings Limited has won the letter of intent from the Bangladesh Power Development Board to build, own and operate a 660 MW power plant at Mirsarai in the port city of Chattogram.
Confidence Power Holdings, in which listed cement manufacturer Confidence Cement owns 36% shares, owns 62% shares of the consortium, according to public disclosure by Confidence Cement.
Foreign technical partner GE Capital US Holdings Inc owns 20% of the consortium, while Confidence Power Ltd and Electropac Industries Ltd own a 9% stake each.
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The approved gas or reliquefied natural gas-based combined cycle power plant will have a 22-year tenure from the date of commercial operation commencement.
Following the disclosure of the new project that would add to the Confidence Cement's consolidated revenue and profits, its share price increased 4.9% to close at Tk127.5 on Thursday in the Dhaka Stock Exchange.
The cement company listed in 1995 entered the power generation business in the last decade and the power plants it directly or indirectly owns are making a significant contribution to the listed company's annual revenue and profits.
