The Bangladesh Power Development Board (BPDB) has chosen US-based AES Corp as the leading sponsor to build, own and operate a 450 MWe gas fired power station 20 km south east of Dhaka. The combined cycle plant will be constructed on the Meghna river. Power from the Meghnaghat project will be sold to the BPDB under a 22-year power purchase agreement (PPA) due to be signed soon. Commercial operation of the facility is scheduled to begin in 2000.

Gas will be provided by Titus Gas Transmission and Distribution Co, a subsidiary of Petrobangla, for the duration of the PPA. AES is already developing a 360 MWe gas-fired facility at Haripur, 5 km from Meghnaghat.