China and Bangladesh Tuesday signed a memorandum of understanding (MoU) here for constructing a 1,320 MW coal-fired power plant in at Moheshkhali, in Cox’s Bazar.
Chairmen of the Bangladesh Power Development Board (PDB) and China Huadian Hong Kong Company Limited (CHDHK) signed the deal on Tuesday. Foreign Minister Abul Hassan Mahmud Ali and Prime Minister’s Energy Adviser Towfiq-e-Elahi Chowdhury were present at the MoU signing ceremony.
The government would acquire 550 acres of land to build the 1320MW plant by 2019. Seventy percent of the cost would be met by a loan, while the PDB and CHDHK would pump in the rest of the money. It is estimated that each of the two units of the plant would generate 660MW by burning 11,000 tonnes of coal. The coal, to be imported from Indonesia, South Africa, Australia and Mozambique, would be of low sulfur content and high calorific value. The PDB will buy the power from the plant to pass it on to the national grid.
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.