The state-run Bangladesh Power Development Board (BPDB) has signed a joint-venture agreement with China Huadian Hong Kong Company Ltd. to build a 1,320-megawatt coal-fired power plant in Bangladesh.
The JV expects within a month to begin construction on the $2 billion power plant project at Moheshkhali Island in Cox’s Bazar district, 415 kilometers (258 miles) southeast of Dhaka, Kallanish Energy reports.
The project is expected to be completed in four years, BPDB director Mohammad Saiful Islam said, Reuters reported.
Bangladesh State Minister for Power, Energy and Mineral Resources, Nasrul Hamid, said Maheshkhali will be transformed into an energy hub within the next three to four years.
The Dhaka Daily Star newspaper quoted CHDHK president Fang Zheng as saying the proposed coal-fired power plant is an important project for CHDHK, as it marks company’s first investment in the country.
CHDHK is a wholly-owned subsidiary of China’s state-run power generation company China Huadian.
Earlier this year, the state-owned Coal Power Generation Company Bangladesh (CPGCBL) began contruction on the 1,200 MW Matarbari power plant in Cox’s Bazar District, Bangladesh.
The BDT360 billion ($4.33 billion) Matarbari ultra super critical coal-fired power plant will feature two units of 600 MW each.
Last August, CPGCBL awarded an engineering, procurement and construction (EPC) contract for the power plant’s construction to a consortium including Sumitomo, Toshiba and IHI Corp. As part of the contract, a deep-sea port will be also constructed by the consortium on Matarbari Island.
Upon its commissioning, the Matarbari power plant is expected to contribute 10% of the total power generation capacity of the country, the Dhaka Tribune newspaper reported.
Bangladesh, which is currently facing a daily power shortage of between 1,000 MW and 1,500 MW, has said it plans to provide electricity to all of its citizens by 2021.
