Dhaka: A joint venture consortium of local business house S Alam Group and two other Chinese companies on Tuesday signed a contract with the government to set up a 1,224 MW (net capacity) coal-fired power plant in Banskhali of Chittagong.

S Alam group holds 70 percent stake of the project while Chinese companies SEPCOIII Electric Power Construction Corporation and STG

Development Group hold 20 percent and 10 percent shares respectively.

As per the deal, the plant will have two units - each having 612 MW net capacity - that are going to be built with super critical thermal power technology in next 45 months with a target to start commercial operation by November 2019.

The state-owned Power Development Board (PDB) will purchase electricity for next 25 years at a rate of 8.259 cents per unit (per kilowatt per hour).

The government awarded the contract on the basis of unsolicited offer under the Speedy Supply of Power and Energy (Special Provision) Act 2010, in which the firm did not face any competitive bidding.

Addressing the deal signing ceremony at Bidyut Bhaban, Prime Minister‘s Energy Adviser Tawfiq-e-Elahi Chowdhury appreciated S Alam Group‘s initiative for such large project, saying that the country’s private sector has now been coming forward to implement big projects.

Acting secretary of PDB Mazharul Haque and chairman of S Alam Group Saiful Alam signed the contract on behalf of their respective sides.