Coal Power Generation Company Bangladesh (CPGCBL) intends to develop two 600MW power plants, totalling around $4.6bn, on an island in the Bay of Bengal, 32km from the beach resort of Cox’s Bazar.
The power projects by the state-run company are intended to solve the country’s prolonged power shortage.
CPGCBL managing director Mohammad Abul Quasem was cited by Reuters as saying that the firm will borrow $3.7bn of the projected amount from Japan International Cooperation Agency (JICA) at an annual interest rate of 0.1%. The loan will be extended for an initial term of 30 years, with provision for ten-year grace period.
The rest of the project costs will be provided by the Government of Bangladesh.
Quasem was quoted by the news agency as saying: "This is the biggest project in the [country’s] power sector in terms of both investment and power generation capacity."
Bangladesh expects construction works for the projects to start next March, and estimates them to be operational from August 2022.
Japanese firms Sumitomo and Marubeni have forwarded bids for the project constructions.
Bangladesh undergoes daily blackouts lasting up to five hours and despite generating around 8GW of power, but still faces a daily deficit of up to 1.5GW.
Bangladesh Power, Energy and Mineral Resources Junior Minister Nasrul Hamid was quoted by Reuters as saying: "If we want to raise our economic growth to 8% from 6.5% now, then our power generation [growth] should be 15%."