MoU signed for Bangladesh`s largest LNG-based power plant
- posted on July 12, 2018
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As many as 5,600 acres of land in Moheshkhali will be developed for the power plant, LNG terminal, and other relevant infrastructure
In yet another major power sector deal, the Bangladesh Power Development Board (BPDB) signed a memorandum of understanding (MoU) with US-based General Electric Company (GE), to jointly build a 3,600MW LNG-fired combined cycle power plant.
It will be the biggest LNG-based power plant in Bangladesh, confirmed BPDB sources.
According to the MoU, as many as 5,600 acres of land will be developed for the LNG-based combined cycle power plant, LNG terminal, and other relevant infrastructure.
Land development alone will cost $1.6 billion, while the estimated establishment cost of the power plant is $2.8 billion. The plant alone will cover 100 acres of land.
The projects will be implemented at Moheshkhali, Cox`s Bazar in three years.
BPDB Chairman Khaled Mahmood and President of GE, Russel Stokes, signed the MoU on behalf of respective organisations at Bidyut Bhaban in Dhaka yesterday.
Both parties will implement the projects forming a joint venture company (JVC), in which the BPDB will hold 51% ownership and GE will hold 30%.
The remaining 19% of the shares will be given to a strategic investor decided by both parties.
High hopes from Bangladesh
Dr Towfiq e Elahi Chowdhury, the prime minister`s adviser on Power, Energy, and Mineral Resources, addressed the signing ceremony thanking GE for their interest in Bangladeshs power sector, urging more US firms to invest in different sectors in the country, especially in infrastructure development.
He also urged US investors and entrepreneurs to focus more on coal-based power plants.
US Ambassador to Dhaka, Marcia Bernicat, said they would keep on contributing to the growth of Bangladesh.
We are proud that GE is now involved in Bangladeshs progress, she said, adding: It is great to see that Bangladesh is advancing in line with its target to become a developed nation by 2041.
The US is committed to building stronger commercial relations with Bangladesh, she said further.
Power Division Secretary, Dr Ahmad Kaikaus, said the Bangladesh economy is booming despite limited resources. He went on to say that Bangladesh is prioritizing the power and energy sector which only 10 years ago, had an annual budgetary allocation of a mere Tk2,500 crore.