The Bangladesh-Singapore joint venture company, Sembcorp North-West Power Company Ltd, will set up the plant at Sirajganj at a cost of US$412 million.
Four agreements on power purchase, land lease, gas supply, fuel supply and implementation of the dual-fuel plant were signed with different parties in Dhaka today.
The joint venture between Sembcorp Utilities of Singapore with 71% stake and Bangladesh’s state-run North-West Power Generation Company Ltd with 29% stake expected the simple cycle plant to start commercial production in June 2018 and the combined cycle in December of the same year.
The power tariff would be Tk3.19 per Kwh if the plant is run by gas and Tk13.56 per Kwh by diesel. The plant efficiency is expected to be 57%, the function was told.
International Finance Corporation, Commonwealth Development Corporation of UK and Singapore-based finance company Clifford Capital will finance 75% of the project cost.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Power Secretary Monowar Islam, consul general of the Singapore embassy in Bangladesh Darryl Lau and Managing Director of North-West Power Generation Company AM Khurshedul Alam spoke at the function.