State-owned Ashuganj Power Station Company Ltd (APSCL) yesterday signed an engineering, procurement and construction (EPC) contract with a Chinese consortium to build a 400 MW power plant on its premises.

As per the contract, the China National Technical Import and Export Corporation (CNTIC) and China National Corporation for Overseas Economic Cooperation (CCOEC) will supply and construct Ashuganj 400 MW combined cycle (East) project at a contract value of US$ 177.76 million (equivalent to Tk 1,473.82 crore) within next 36 months.

Asian Development Bank (ADB) and Islamic Development Bank (IDB) financed the project along with the Bangladesh government with having APSCL's own funding.

Addressing the contract signing ceremony at Sonargaon Hotel in the city, State Minister for Power Nasrul Hamid said the APSCL will float bonds in the local market to mobilise fund from the general public.

He said this will provide the local investors to be partners in the government's company that will ultimately facilitate the company to be more transparent and accountable to spend its money.

Bangladesh is going to celebrate its graduation from LDC to developing country where the country's power sector had a big role in achieving the success, the minister said.

The function, with PDB Chairman Khaled Mahmood in the chair, was also addressed by prime minister's Advisor Dr Tawfiq-e-Elahi Chowdhury, prime minister's SDG coordinator Abul Kalam Azad and power secretary Dr Ahmed Kaikaus.