The agreement was reached when a high-powered Bangladesh delegation recently visited Myanmar.

Power Secretary Dr M Fouzul Kabir, who led the delegation on the visit from July 10 to 13, told reporters yesterday that the visit was very fruitful as the two countries agreed on two issues.

As per the agreement, a delegation will make a follow-up visit to Myanmar in November and sign the MoU to conduct a joint techno-economic feasibility study to build the hydropower plant in its Rakhaine State to supply power to Bangladesh.

He said three locations are being considered as potential sites for the plant. But among those, a site in Lemro River of Rakhaine State is most prospective, as there is a potential for building a 500-600 MW plant. This site is approximately 100 km from Bangladesh.

Kabir said both the countries would examine all the possible options as to which could be the basis for such a big-venture plant. "Either it could be a government-government joint-venture project or a private-public joint venture between the two countries."

But, he added, everything will be decided after the feasibility study.

The power secretary said the feasibility study would look into the technical and financial viability of the project so both the countries can benefit from it.

He mentioned that the proposed power plant would be built under a long-term planning which would have no role to resolve the present power crisis.

He said many countries, including China, India and Thailand, are now working in Myanmar with the same purpose of setting up hydropower plants.