South Korea's Samsung C&T has received a letter of award to build Meghnaghat Combined Cycle Power Plant from the project’s client Reliance Bangladesh LNG & Power Limited recently.
As the exclusive contractor, Samsung C&T will spend 34 months from October 2019 to July 2022 to build the Meghnaghat plant.
Under the project, a 718MW combined cycle power plant consisting of two gas turbines, one steam turbine, two heat-recovery boilers, and a substation will be built at a cost of $630 million, said the company statement.
Sumsung C&T will implement the project on a turnkey basis. It is already working on the Siddhirganj Combined Cycle Power Plant project in Bangladesh.
Japan's JERA had earlier agreed to acquire 49 percent stakes in the Meghnaghat power project. Bangladesh Power Development Board will buy electricity from the project for 22 years.
The project company, with support from the two Asia's energy giants, will negotiate the engineering, procurement and construction contract and loan agreements for the project in order to make final the investment decision for the project.
Reliance plans to invest about $1 billion to set up the plant by 2022, Reuters reported. The combined-cycle power plant will be fuelled by gas and liquefied natural gas.
The Meghnaghat Combined Cycle Power Plant will be built within Meghnaghat Industrial Complex, which is located in Narayanganj. It will generate electricity to power the industrial complex as well as residential homes in nearby towns and cities, including Dhaka itself. The Bangladeshi economy has been growing rapidly at more than 7 percent a year since 2016, according to the IMF, and is expected to need more power plants to meet the expanding demand for electricity that comes with such impressive growth.