Development of a $2.5 billion coal-fired power plant in Bangladesh has moved forward with the formal award of a contract to a Malaysian consortium.

According to local media, the Malaysian consortium will implement the 1320 MW Chittagong power plant after carrying out a feasibility study. It will have an equal equity shareholding in the project with the Bangladesh Power Development Board (BPDB) with a concession period of up to 25 years.

The Chittagong power plant is one of several new power generating facilities planned by Bangladesh for the Cox’s Bazar district. BPDB signed a memorandum of understanding with a consortium of Malaysia’s Tenaga Nasional Berhad (TNB) and Powertek Berhad in 2014 to build the plant.

Previous reports have indicated that the plant will use ultra-supercritical technology.