The government signed a deal with China to set up a 1,320 MW coal based power plant in Moheshkhali upazila of Cox’s Bazar.
Mr Abduhu Ruhullah, chairman of Bangladesh Power Development Board and Mr Zhao Longjun, president of Huadian Hong Kong Company of China, signed the memorandum of understanding at Bidyut Bhaban in the capital.
Under the agreement, BPDB and the Chinese company will jointly build 2 units with a capacity of 660 MW each by 2019.
The cost of the plant over 550 acres of land will be finalised during a feasibility study.
Bangladesh and China will finance 30% of the project while the remaining amount will be taken as loan from other sources.
The plant will use 11,000 tonne of coal a day, which will come from Indonesia, South Africa, Australia and Mozambique.
It is the second deal with the Chinese government. Earlier, the state owned North West Power Generation Company reached an agreement with China National Machinery Import Export Corporation last month for setting up a coal fired power plant of the same capacity in Patuakhali.
Mr Abduhu said that “The government has already taken steps to acquire 5,000 acres of land in Moheshkhali so that it can build several more plants to generate 9,000 MW electricity there in total. It is a matter of comfort that the site requires almost no resettlement and rehabilitation. Besides, the plants can be operated with minimum disturbance to the nature, environment and eco-system.”
Mr Tawfiq-e-Elahi Chowdhury, power, energy and mineral resources affairs adviser to the prime minister, requested the Chinese company to complete one unit within the next three years.
He said that “The project is a high priority for the country.”
Foreign Minister Mr Abul Hassan Mahmood Ali said that “McKinsey & Company, a global management consulting firm and trusted adviser to the world’s leading businesses, governments and institutions and credit rating agency Moody’s underline that a rapid enhancement of Bangladesh’s power generating capacity is more than essential.”
He said that “We achieved 10,000 MW electricity generating capacity last year. The government has unveiled its plan to generate 39,000 MW power by 2030.”