BM Desk : The publicly traded energy and electricity firm Khulna electricity firm Limited (KPCL) is planning to sell one of its power facilities to the Turkish company Aksa Energy Uretim AS. The name of this specific facility is KPC Unit 2. The two businesses already have an agreement in place for this transaction.

In a price-sensitive statement filed with the Dhaka Stock Exchange (DSE) on Wednesday, July 23, Khulna Power Company announced the sale of the facility. The plant’s sale price was not disclosed by the corporation, though.
The power plant in question can produce 115 megawatts and is located in Khalishpur. Since March 2024, it has mostly been dormant since the power sale contract with the government expired.

Khulna Power’s stock increased by 2.63% to Tk 11.70 on the Dhaka Stock Exchange on Wednesday, following the announcement regarding the sale of the power plant.

Khulna Power Company Limited is recognized as the first private power plant in the country. The sponsors behind this company are Summit Group and United Group. The company made its entry into the capital market through a direct listing in 2010. There are claims that the company’s founders sold shares at inflated prices through various manipulative practices and misappropriated significant sums from general investors.

In the meantime, all of the company’s power plants were gradually shut down as the power sales agreement with the government came to an end. Amidst considerable criticism, United Group, one of the sponsors, divested 35 percent of their 150 MW United Payra Power Plant to Khulna Power Company.

Following the August 5th political shift, the newly elected government decided to review the contracts of private sector power plants, and it became clear that Khulna Power’s contract was not renewed because of the difficult circumstances facing the government. As a result, the company began selling all of its plants. Previously, the company had signed a deal with Excelerate Global Operations LLC, a US-based company, to sell its first 110 MW barge-mounted power plant for $15 million (roughly Tk 130 crore), and now has a deal to sell Unit Two.