The government has signed two deals with Sembcorp North-West Power Generation Company Ltd to set up a 414MW dual-fuel, combined cycle power plant in Sirajganj.
The deal to construct the power plant was signed between the Power Division and Sembcorp North-West and the the other deal, a power purchase agreement, was signed between Bangladesh Power Development Board (PDB) between Sembcorp North-West.
Both the deals were signed on Monday at a hotel in Dhaka.
Sembcorp North-West Power Generation Company Ltd is a joint venture of Singapore-based Sembcorp Industries and Bangladesh-based North-West Power Generation Company Ltd, in which Sembcorp has 71% ownership.
The simple cycle unit of the power plant is expected to be operational in June 2018, and the combined cycle unit is expected to be fully functional by February 2019.
The total cost of the project is estimated at $412.5 million. The engineering procurement and construction cost is estimated at $278.92 million.
Sembcorp North-West will borrow 75% of the project cost from international lenders, and will fund the rest of the amount.
Once the power plant goes into production, the PDB will purchase electricity from the plant at the levelled tariff rate of Tk3.188 per unit (kilowatt-hour) for 22.5 years.
Pashchimanchal Gas Company Ltd will supply gas to the dual-fuel plant, while Bangladesh Petroleum Corporation will supply diesel.