DHAKA: Bangladesh is going to build a coal-based power plant under joint venture with China after such an initiative with neighboring India on Rampal Coal-based power plant project.

A memorandum of understanding (MoU) was signed between state-owned North-West Power Generation Company Limited (NWPGCL) and Chinese state-owned China National Machineries Import and Export Corporation (CMC) in a city hotel Wednesday evening.

NWPGCL Managing Director Khurshedul Alam and CMC President Wamgs Shelg signed the MoU on behalf of their respective sides.

With the capacity to generate 1320 megawatt of electricity, the proposed plant would be built in Kalapara upazila of Patuakhali, in which both the countries have equal share.

Addressing the function as chief guest, Agriculture Minister Matia Chowdhury said “we are showing paths to the future generations, which will be better for the country, and they will follow the path.”

State Minister for Power, Energy and Mineral Resources Nasrul Hamid said a new company would be set up in coordination between the NWPGCL and the CMC for the project.

China’s investment proved that the foreign investors had trust to the government and to the country as well, he added.

The plant would be run by the imported coal, said NWPGCL MD adding government has Khash land in Madhupur and Devpur Mouja of the upazila.

He said, the plant construction would be possible, if a few number of residents there could be rehabilitated.

Prime Minister’s Energy Advisor Tawfiq-e-Elahi Chowdhury, Power Division Secretary Monowar Islam, and Chinese Ambassador to Bangladesh Li Jun, among others, spoke at the function.

The MoU is second initiatives of its kinds after the construction processes are underway for the Rampal power plant project at Bagerhat with a joint ownership between Bangladesh and India.

BDST: 1015 HRS, MAR 20, 2014