GBB Power shuts its power plant as agreement ends

    Originally published in The Business Standard on 16 June 2023

    GBB Power Limited (GBBPL) — a private electricity generation company which supplies power to the National Grid, has shuttered down its natural gas-fired power plant as the power purchase agreement (PPA) has expired.

    According to a disclosure on the stock exchanges on Sunday, the company said the PPA expired on 16 June and it has applied for an extension for the contract for supplying electricity to the power division of the Ministry of Power, Energy and Mineral Resources.

    It said, as the PPA term was over, the plant will remain shut until further instruction from Bangladesh Power Development Board (BPDB) or Ministry of Power Energy and Mineral Resources for the operation of the power plant.

    Established in 2006, GBB Power and got listed on the stock exchanges in 2012.

    The main objective of the company was to set up power plants on a Build-Own-Operate basis for the generation of electricity and to sell generated power to Bangladesh Power Development Board (BPDB).

    The company has been supplying a minimum of 21.03MW of electricity to Bangladesh Power Development Board (BPDB)’s 33KV regional grid, according to the company’s website.

    The shares price of the company is stuck at the floor price of Tk15.10 each.

    In the 2021-22 fiscal, it made a profit of Tk10.30 crore and paid a 3% cash dividend for the shareholders.