State-run Bangladesh Power Development Board (BPDB) has agreed to form a joint venture with state-run China Huadian Hongkong Company (CHDHK) by June 2018 to construct a 1.32 GW coal-fired power plant in Bangladesh`s Cox`s Bazar district. The US$2bn (1.7bn) project is CHDHK`s first investment in the country and is scheduled for commissioning within four years.
The project will be built on Maheshkhali island, where the Bangladesh government aims to develop an energy hub within the next three to four years. The Bangladesh government plans to develop several coal power projects to bridge the estimated power shortage of about 1-1.5 GW and provide electricity access to all its citizens by 2021. State-owned Coal Power Generation Company Bangladesh (CPGCBL) has already started construction on the 1.2 GW Matarbari ultra super critical coal-fired power plant in the same district.