Ordinal / Perspective7 Sep 2019 18:59
People are being a little deluded if they think that a 'Green Light' will suddenly happen one day. There is an ordinal to proceedings here and it's unclear as to how far down the path the company is. Keep in mind they are a 1 man outfit who have a small project office (Dyani) at their disposal.
Firstly before submitting a proposal they need:
1) A Powerplant partner - Power China - Tick
2) A major mining partner (s)* - ?
3) Project Funding (They are not getting this without 1 or 2 in place) - ?
4) Ancillary / Project Support - This is confusing as the contract with China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd was not clear as to what their involvement would be. Also surely Dyani would be covering this function - ?
Without the above in-place then no proposal can be submitted as the Gov. of Bangladesh can't consider a proposal that doesn't have the key players and funding in place.
The most recent RNS regarding DG Infratech Pte Ltd was worrying, due in part to the assumption that the 'approval' would be somewhat of a 'slam dunk' once said proposal is submitted. It now feels that this latest company has been brought in to influence their approach, which does seem to indicate that the playing field has changed and they need help negotiating the political minefield.
All in all, previous assumptions that 2019 would see this project green lighted seem optimistic as the company don't seemed to have progressed or finalised their partnerships. Also, PowerChina only signed for 12 months. Without only 3 months left of 2019, it will be interesting to see what arises and wether PowerChina extend their JA in a vote of confidence.
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