Govt to build three more power plants
12:00 AM, February 27, 2018 / LAST MODIFIED: 04:59 AM, February 27, 2018

Govt to build three more power plants

All coal-based, to be constructed by Chinese companies

Chinese companies are going to construct three more coal-based power plants in Bangladesh with a total capacity of 3,960 megawatts.

Two of the plants will be set up by Bangladesh-China joint venture companies while another by a consortium of China and Hong Kong-based firms.

The power plants, with a capacity of 1,320MW each, will be built in Maheshkhali of Cox's Bazar, Kalapara of Patuakhali and Mirsarai of Chittagong.

“All the projects are now at a preliminary stage. Some procedures have to be completed before the construction work commences,” State Minister for Power, Energy and Mineral Resources Nasrul Hamid told The Daily Star yesterday.

The cabinet yesterday approved the draft of a joint venture agreement between Bangladesh Power Development Board (BPDB) and China Huadian Hong Kong Co Ltd to form a joint venture company (50:50 share) for setting up a 1,320-MW thermal power plant in Maheshkhali.

It also gave the go-ahead to the related Memorandum of Association and Article of Association of the joint venture company.

Following the cabinet's approval, a joint venture company would be formed and a feasibility study for the project would be conducted which might take three to four months, Nasrul said.

The financing issues have to be settled before starting the construction work, the state minister added.


The Ashuganj Power Station Company Ltd, an agency of BPDB, entered into a joint venture agreement with China Energy Engineering Corporation Co Ltd (Energy China) in July last year to build the power plant.

According to planning ministry documents, formation of the joint venture company is underway.

The 1,320MW (2X660MW) super thermal power plant will be built in Kalapara of Patuakhali, which will be the coal-based “power hub” of the country.

The Power Division is scheduled to put a Tk 819.51 crore project proposal to the meeting of the Executive Committee of the National Economic Council (Ecnec) today for acquisition, development and conservation of land for the power plant, said planning ministry sources.

The project is expected to be completed within December next year, according to ministry documents.

Nasrul said the proposed power plant projects in Maheshkhali and Patuakhali would be implemented the way a joint venture company was implementing 1,320MW power plant in Kalapara near Payra Sea Port in Patuakhali.

The China National Machinery Import and Export Corporation (CMC) along with North-West Power Generation Company Ltd (NWPGCL) of Bangladesh is constructing the power plant in Kalapara.

Construction work of the power plant began in April 2016. Thirty-one percent of the work has been completed till December last year. The authorities are hopeful that a 660MW unit of the plant will be commissioned by April next year and another unit of the same capacity by October.

A total of $1.6 billion will be invested in the plant, with 20 percent equity and 80 percent loan financing. The Chinese Exim Bank will finance the project. China and Bangladesh will share 50-50 equity in the project.


The 1,320-MW thermal power plant will be built in Chittagong's Mirsarai upazila by a consortium of three companies who will operate as independent power producers.

The three companies are Hangzhou Jinjiang Group Co Ltd and Hangzhou Zhengcai Holding Group Co Ltd of China and Jindun Energy Equipment (Hong Kong) Ltd.

A draft agreement, which will be signed between the Power Division and the consortium, will be placed before the meeting of the Cabinet Committee on Purchase tomorrow for approval, said Power Division sources. 

Nasrul said the power plant project would be implemented by private sector operators and the government would buy electricity from the consortium. 

Stay updated on the go with The Daily Star News App. Click here to download it for your device.

Grameenphone and Robi:
Type START <space> BR and send SMS it to 2222

Type START <space> BR and send SMS it to 2225

Leave your comments

Top News

Top News