The Hummel Station project is located at the former coal-fired 400MW Sunbury power plant, which was shut last year due to economic and regulatory factors including competition from natural gas and the mounting pressure of Environmental Protection Agency mercury regulations.
Panda has selected Siemens to supply combustion and steam turbines, generators, and heat recovery steam generators, which combine to form the primary power generation technologies, while Bechtel will be providing project management, engineering, procurement, construction, and startup services for the new power plant.
The three companies have previously joined forces on several other plants in Texas and the northeast.
Construction of the new plant is expected to commence next month and will take approximately 30 months to complete.
It is expected to supply power to around one million homes in Philadelphia and the New York metropolitan area.
The project is also likely to create 900 jobs during the construction phase, and around 35 long-term jobs are to be created for operational purpose, followed by 52 jobs for the support of the plant.
Bechtel power business general manager Scott Osborne said: "The state-of-the-art Hummel generating station will use the latest, most advanced emissions-control technology, making it one of the cleanest natural gas-fueled power plants in the nation.
"It will supply nearly twice as much power as the coal plant it replaces and key air emissions will be reduced by more than 90 percent."