Bangladesh today signed a memorandum of understanding (MoU) with China to set up a 1,320MW coal-based power plant in Moheshkhali upazila of Cox's Bazar.
The deal was inked between Power Development Board of Bangladesh and Huadian Hong Kong Company of China.
Under the agreement, a joint venture company – BPDB and China Haudian Hong Kong Company -- will be formed to complete the project by 2019.
China will install ultra-supercritical technology at the plant to meet environment standards, according to the deal.
While addressing the signing ceremony, Tawfiq-e-Elahi Chowdhury, energy affairs adviser to the prime minister, urged the Chinese firm to complete the project in time.
Bangladesh and China will finance 30 percent of the total project while the rest will come as loan from other sources. The project cost will be finalised during feasibility study.
It is the second deal with the government of China following state-owned North West Power Generation Company's first deal with China National Machinery Import Export Corporation last month for setting up a similar capacity coal-fired power plant in Patuakhali.