Khulna Power Company Ltd

Khulna Power Company Ltd. (KPCL) is the first IPP in the country established under the Private Sector Power Generation Policy of Bangladesh to address power needs in the southwestern region of Bangladesh. KPCL commenced commercial operations in October 1998 and it currently operates three power plants with combined gross capacity of 265MW.

Incorporated in October 1997 as a private limited company, KPCL was subsequently converted into a public limited company in July 2009 and the company is listed on the Dhaka Stock Exchange.

Khulna Power Company Unit II Ltd:

Khulna Power Company Unit II Ltd. (KPC Unit II) was formed on June 22, 2010 for setting up of 115 MW power plant under a contract with Bangladesh Power Development Board (BPDB) signed on June 23, 2010 for supplying electricity on rental basis initially for 5 years with a provision for extension of terms for a further period of minimum 5 years. The 99% shares of KPC Unit II are owned by KPCL. The plant is located at the extended premises of the KPCL plant at Khulna. The plant achieved Commercial Operation Date (COD) on June 1, 2011 and since then it has been supplying electricity to the national grid.

Khanjahan Ali Power Company Ltd:

Khanjahan Ali Power Company Ltd. (KJAPCL) was formed on July 19, 2010 for setting up of 40 MW power plant under a contract with Bangladesh Power Development Board (BPDB) signed on July 25, 2010 for supplying electricity on rental basis initially for 5 years with a provision for extension of terms for a further period of minimum 5 years. The 90% shares of KJAPCL are owned by KPCL. The plant is located at Noapara, Jessore. The plant achieved Commercial Operation Date (COD) on May 29, 2011 and since then it has been supplying electricity to the national grid.

Amalgamation of Khanjahan Ali Power Company Ltd & Khulna Power Company Unit II Ltd with Khulna Power Company Ltd.

Khanjahan Ali Power Company Ltd and Khulna Power Company Unit II Ltd (“Transferor Companies”) and Khulna Power Company Ltd (“Transferee Company”) are under common management since incorporation. In order to enable effective management and diversified control of operations as well as to achieve greater financial strength and flexibility in the interests of maximizing overall shareholder value shareholders of the Transferee Company and the Transferor Companies have proposed to restructure, amongst others, assets by way of amalgamation. Further, the amalgamation would help the Companies to create an opportunity for better management of the assets.

On 22 March 2015, the high court division of Honorable Supreme Court of Bangladesh issued an order giving effect to our scheme of amalgamation under company matter no.322 of 2014. The high court ordered that under the amalgamation scheme, the entire undertaking of Khulna Power Company Unit II Ltd and Khanjahan Ali Power Company Ltd (the transferor companies) as going concerns will be transferred to and vested in the Khulna Power Company Ltd (the transferee company) with an effective date of 30 September 2014. In the said Judgment, the Hon’ble High Court took particular interest on the transfer and vesting part of the Scheme as appearing at page 8 of the Judgment which runs as follows:

On 22 March 2015, the high court division of Honorable Supreme Court of Bangladesh issued an order giving effect to our scheme of amalgamation under company matter no.322 of 2014. The high court ordered that under the amalgamation scheme, the entire undertaking of Khulna Power Company Unit II Ltd and Khanjahan Ali Power Company Ltd (the transferor companies) as going concerns will be transferred to and vested in the Khulna Power Company Ltd (the transferee company) with an effective date of 30 September 2014. In the said Judgment, the Hon’ble High Court took particular interest on the transfer and vesting part of the Scheme as appearing at page 8 of the Judgment which runs as follows:

Operation & maintenance (O&M) of KPCL plant and its subsidiary Units:

The KPCL plant and two of its subsidiary units (KPC II & KJAPCL) subsequently amalgamated with KPCL from 30.09.2014 were being operated and maintained by Wärtsilä Bangladesh Ltd., a 100% owned subsidiary of Wärtsilä OY, Finland; the manufacturer and EPC contractor of these plants under a long term O&M Agreement. A team of highly skilled professionals are engaged in the operations of the plant. The operational process has been developed and managed by the expert team. For any technical issue, the equipment manufacturer extends their support as and when needed. The management team at plant level is also professional and possesses requisite expertise to run the operations. Recently these plants are being operated and maintained by the companies itself with full sets of experienced engineers and staff as engaged earlier.

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