Malaysia to build power plant

Malaysia plans to set up a 1,320-megawatt power plant at Moheshkhali and provide 70 percent of the project cost as loans to Bangladesh.

The cabinet committee on purchase yesterday in a meeting chaired by Finance Minister AMA Muhith gave the project the go-ahead.

The government and Malaysia will each have a 50 percent share of the plant and Bangladesh will bear 30 percent of the project cost.

The meeting directed the power division to discuss the issue of bringing down Bangladesh's share in the fund to 20 percent with the Malaysian government.

Also at yesterday's meeting, the cabinet committee rejected a Chinese proposal on setting up another 1,320 MW power plant at Moheshkhali.

The proposal said the country would provide 70 percent of the required loan amount and control 70 percent ownership as well.

The finance minister informed reporters that he directed the power division to have talks with China so that their terms and conditions match with those of Malaysia.

The government plans to set up a total power hub at Moheshkhali where Japan will build several power plants that will altogether produce 3,000 MW of electricity, Muhith said.

Japan will also build a seaport at Moheshkhali through which coal for the power plants will be imported.

A huge amount of coal will be imported using this port, but Japan will not use the whole amount; some of the coal will be used in other power plants, he added.