North-West Power Generation of Bangladesh has signed an agreement with China National Machinery Import and Export Corporation (CMC) to develop a 150MW power plant at Soydabad in Sirajganj, Bangladesh.

CMC will install the plant, scheduled to be commissioned in May 2012, and will cost Tk9625m ($137m) to build.

The plant will use natural gas and high-speed diesel (HSD) to generate power.

Funding for the plant will come from the Bangladesh Government and Asian Development Bank.

The government has signed agreements with different companies, agencies and departments to produce a total of 2,500MW of electricity.

It will also sign more agreements with other companies by the end of the year to produce another 1,500MW of power.