The government has plans for a 1,320 coal-based power plant in Patuakhali. The joint venture agreement between Rural Power Company Limited (RPCL) with Chinese state-owned Norinco International Ltd will be up for discussion at the Monday meeting of the Cabinet Division.
The power plant is designed to go into effect from December 2021, according to sources from the Power Division.
Norinco representatives are currently laying the groundwork for the project.
RPCL Managing Director M Abdus Sabur said the project cost is estimated to be $2 billion.
He said: “About 30% of the costs will be covered by equity investment and 70% will be a loan from the Chinese EXIM Bank. The loan will have a 4% interest rate and repayment period of 15 years with a five year grace period.”
The project is expected to be completed by 2022.