Indonesian Co to build 10 MW power plant in Bangladesh

An Indonesian company signed an agreement Monday with the local governing authority to build a 10-megawatt power plant, officials said.

The plant will help ease a 70 megawatts power shortfall in the port city, officials said.

Kaltimex Energy Ltd. of Indonesia will provide financial as well technical assistance to set up the gas-powered power plant, which is expected to be completed within one year and cost nearly 500 million taka ($1=50 taka).

The Indonesian company will have 60% stake in the plant, while the Chittagong City Corporation will keep 40%.

Bangladesh is encouraging foreign companies to invest in gas-based power plants to tide over power shortage in the country.

Chittagong, a city of 6 million, needs 230 megawatts of power, but it currently produces 160 megawatts. (*)