The Bangladesh Economic Zones Authority will sign a deal with a Chinese company in a month enabling it to invest $5 billion in the country.
If materialises, it will be the single largest foreign investment by a company in Bangladesh's history.
The investor, Zhejiang Jindun Pressure Vessel Co Ltd, will not only generate electricity by setting up a coal-fired power plant but also utilise the plant's ashes to make bricks by establishing a specialised factory.
“As we are satisfied with the details of the investment plan we are going to provide them 500 acres of land,” Paban Chowdhury, chairman of the Beza, told The Daily Star yesterday.
On signing the deal on the allocation of land at the Mirsarai Economic Zone in Chittagong, Zhejiang will pay Tk 315 crore to the Beza as the land rent for 50 years, he said. Bangladesh received a record $2.45 billion in FDI in 2016-17.
Zhejiang representatives visited the under-construction zone in October 2015 before applying to the Beza seeking 1,000 acres of land, paying Tk 6 crore in advance, said Beza officials.
The Chinese company had wanted to set up a 2,640-megawatt plant but the Power Division gave it permission initially to build a 1,320MW plant comprising two units with 660MW each.
Zhejiang has pledged to construct the plant within three years after striking the deal, according to Chowdhury.
Considering the power shortage in Bangladesh, the Beza has given priority to the Chinese company's plans, he said.