The Coal Power Generation Company of Bangladesh (CPGCB) has signed a financing deal to help it build an ultra-supercritical coal fired power plant.
Reuters reports that the firm will borrow $3.7 billion from the Japan International Cooperation Agency (JICA) to build the 2 x 600 MW plant. The balance of the $4.6 billion project will be met by the Bangladesh government.
The 1200 MW power plant will be built at Matabari, Cox's Bazar District and will play a key role in easing power shortages in Bangladesh. It forms part of wider plans to develop a power hub in the district, composed of several coal- and gas-fired power plants.
CPGCB's loan terms with JICA include an annual interest rate of 0.1 per cent over 30 years, and an initial ten-year grace period. Construction is due to start in March 2016, with operations scheduled to start in 2022.
Both Sumitomo Corp and Marubeni Corp are in the running to build the project, according to Reuters. The project includes the construction of a jetty and coal handling facilities for coal import and storage.
According to JICA, power supplies in Bangladesh are only sufficient to meet 80 per cent of demand, and electricity demand is expected to grow by ten per cent per year over the next ten years.