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GBB Power has shut down its 20MW natural gas fired power plant on Friday instructed by Bangladesh Power Development Board as a 15 years power purchase agreement has expired.
However, the company has applied for extension of the contract for supply of electricity to the power division of the Ministry of Power, Energy and Mineral Resources (MPEMR) on January 11 this year which is under consideration, said the company in a filing on Sunday.
Established in 2006, GBB Power entered into a joint venture agreement with Caledonian Power to set up a power plant.
The joint venture entered into a PPA agreement with BPDB for 15 years. Under this agreement, a 20MW power plant was set up in Bogura, and its commercial operation started in 2008.
This subsidiary of GBB Group was listed on the stock market in 2012.
According to company sources, GBB Power tried to get approval for the construction of some more power plants, but to no avail.
Analysts said the company was listed on the stock market with just one power plant. So its shares were not very profitable for investors from the beginning.
The company’s share closed at Tk 15.10 on Thursday at the Dhaka Stock Exchange.