Orion Group Laboratories has recently signed an issue management agreement with state-owned ICB Capital Management Ltd (ICML) for issuing initial public offering (IPO) through book-building method, said a statement.
ICML will work as an issue manager of Orion Group Laboratories, a subsidiary of Orion Group.
Obaidul Karim, managing director of Orion Laboratories, and Abdur Rauf, chief executive officer of ICML, signed the deal on behalf of their respective organisations on Monday.
Orion Laboratories will collect the money from the general investors to set up a pharmaceutical plant and a power plant.
This new factory will be the biggest in the pharmaceutical industry in Bangladesh in terms of investment, covered area, and the number of varieties of dosage forms to be produced, said the statement.
The 200 MW power plant under the
purview of Orion Laboratories will be added to the national grid by March next year, the statement added.The Power Development Board yesterday signed three sets of agreements with local Orion Power to set up three private coal-fired power plants in Khulna, Chittagong and Mawa totaling 1,200 megawatt capacity.
Salman Karim, director of Orion Power, told The Daily Star yesterday the company had signed Implementation Agreement and Power Purchase Agreement for the Khulna 300 MW, Chittagong 300 MW and Mawa 600 MW power projects.
“The Khulna and Chittagong projects will be commissioned within 36 months while the Mawa project within 45 months from signing of these agreements,” he added. Salman also noted that Orion Power has signed a memorandum of understanding (MoU) with the Electricity Generation Authority of Thailand International (Egati) as its investment partner.
Egati is the largest Thai power producer having the experience of generating 16,000 MW power. As per the agreements, Orion Power has to build the plants on their own land and arrange its own coal supply.
The company has purchased 500-bigha land in Khulna and Mawa each and a 700-bigha plot of land in Chittagong for its projects. It, however, proposed the government approve a merger between the two 300-MW projects–either in Chittagong or in Khulna–to make them viable.
The company has signed MoUs with two trading companies– Swiss Glencore and Japanese Mitsui– to ensure smooth supply of coal from Indonesia and Australia to their projects. Once commissioned, Orion Power will sell electricity to the PDB at Taka 3.78 per kilowatt-hour in Khulna and Chittagong and Taka 4.30 per kilowatt-hour in Mawa.
The government has entered a deal with Orion Group to install three private coal-based power plants to add 1088MW power to the national grid.
Although there is a government-run coal-based power plant producing 250MW power at Barapukuria, this is the first move to get private firms to produce power from coal.
On Jan 29, the government struck a deal with India for installing a coal-based power plant with a capacity to produce 1030MW at Rampal in Bagherhat near the Sundarbans.
One of the new power plants will be set up at Mawa in Munsiganj to produce 522MW. Two other plants will be established at Anwara in Chittagong and in Khulna each with a capacity of generating 282.67MW.
Orion Group Managing Director Salman Obaidul Karim and Power Development Board (PDB) Secretary Md Azizul Islam signed the agreement at the Bidyut Bhaban. The power plant at Mawa will go into operation in 45 months while the plants at Khulna and Chittagong will be built in 36 months.
The government will pay Taka 4.79 for per unit power produced by the Mawa plant and Taka 4.45 for power supplied from the other two plants. Currently daily power production is 5,500MW against the demand of 7,000MW.
The Prime Minister’s Adviser Tawfiq-e-Elahi Chowdhury, State Minister for Power Mohammad Enamul Hoque, Power Secretary Abul Kalam Azad, PDB Chairman ASM Alamgir Kabir and Orion Group Chairman Obaidul Karim were present at the ceremony.“Many had feared whether it would be possible at all to establish power plant by importing coal. After overcoming all the challenges we are going to prove that through this agreement. I hope the plants will come into operation at the expected time,” said advisor Chowdhury. Chairman Karim said they will import coal from Australia and Indonesia and that reputed organisations have been employed to look into issues including building the plants and importing coal. He was also hopeful about making the plants operational three months before schedule.
Power is being produced using five types of energy. About 80 percent of the daily power is being produced using gas, while furnace oil and diesel are used for producing 17 percent. Water and coal produces 3 percent.
After assuming power the government undertook a plan of raising daily power production by 15,000MW within 2016.The government has so far struck deals for 56 power plants.
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