The state-run Bangladesh Power Development Board (BPDB) has signed joint venture agreement with China Huadian Hongkong Company (CHDHK) to build 1,320MW coal-based power plant in Bangladesh.
Image: officials from BPDB and CHDHK during agreement signing ceremony. Photo: courtesy of 8 Ministry of Power, Energy & Mineral Resources.
As per the terms of the deal, a joint venture is planned to be set up within a month to commence construction on the $2bn power plant project at Moheshkhali Island in Cox’s Bazar district, 415km south east from Dhaka.
BPDB director Mohammad Saiful Islam was quoted by Reuters as saying that the joint venture, which will be equally owned by both the companies, plans to commission the project in four years.
Bangladesh State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that Maheshkhali is planned to be transformed into an energy hub within the next three to four years.
CHDHK president Fang Zheng was quoted by The Daily Star as saying that 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) had begun contruction on a 1.2GW Matarbari power plant in Cox’s Bazar District, Bangladesh.
The BDT360bn ($4.33bn) Matarbari ultra super critical coal-fired power plant will feature two units of 600MW each.
In August 2017, CPGCBL had awarded an engineering, procurement and construction (EPC) contract for the power plant’s construction to a consortium made up of Sumitomo, Toshiba and IHI. As part of the contract, a deep sea port will be also constructed by the consortium on the Matarbari Island.
Upon its commissioning, the Matarbari power plant is expected to contribute 10% of the total power generation capacity of the country, Dhaka Tribune reported.
Bangladesh, which is currently facing a power shortage of between 1,000MW and 1,500MW a day, is planning to provide electricity to all of its citizens by 2021.