Bangladesh Power Development Board (BPDB) has signed a power purchase agreement with United Chattogram Power Limited (UCPL) to set up a 590 MW gas-based combined cycle power plant in Anwara upazila of Chattagram district.
According to the agreement, the UCPL, a subsidiary of United Group, has the option to operate through natural gas, if available, or through imported re-gasified liquefied natural gas (R-LNG).
The UCPL will set up the plant on 12.5-acre of land in Anwara and start commercial operation by January 28, 2026, reports UNB.
Two Japanese firms will have a 40 per cent stake in the project while United Group will hold the remaining 60 per cent, BPDB officials said.
Under the PPA, the state-owned principal entity in the power sector will purchase electricity from the plant over a period of 22 years at a tariff of US Cents 3.6867 (equivalent to Tk 2.95) per kilowatt-hour if the plant is run through natural gas.
If it uses R-LNG, the tariff will be US Cents 6.8043, equivalent to Tk 5.44) per kilowatt hour (each unit).
At a function at Biduyt Bhaban, chairman of United Group and managing director of UCPL Mainuddin Hasan Sharif and BPDB secretary Saiful Islam Azad signed the contract on behalf of their respective sides.
Power Secretary Habibur Rahman and BPDB Chairman Belayet Hossain spoke on the occasion while other senior officials of the power division, BPDB and UCPL were present at the function on Thursday.
Two more contracts—implementation agreement (IA) with Power Grid Company of Bangladesh (PGCB) and gas supply agreement (GSA) with Karnaphuli Gas Distribution Company Limited -- were also signed at the function.