Dhaka: A joint venture between state-owned North-West Power and Singaporean private firm Sembcrop finally signed a contract on Monday to set up a 414 MW dual-fuel combined cycle power plant in Sirajganj by December 2018.

The project was planned more than 10 years ago, during which it was awarded to a number of companies at various times.

But all including the Indian Lanco Power failed to move it forward.

Now finally the Singaporean company entered into a 71:29 joint venture with the North-West Power Company to implement the project.

The JV called ‘Sembcrop North-West Power Company’ will invest $412.5 million to set up the project.

Three international agencies - the World Bank’s private sector arm IFC, UK-govt owned CDC and CC will finance 75 percent of the project cost while the two companies’ equity will be 25 percent.

In the equity, Sembcrop will have 71 percent while NWC holds 29 percent.

The state-owned Power Development Board will purchase electricity at a levelled tariff of Tk 3.188 per unit when it uses gas as fuel. The tariff will be Tk 13.5697 per unit when it uses furnace oil as fuel.

Addressing the contract signing ceremony at Sonargaon Hotel, State Minister for Power and Energy Nasrul Hamid said that through this investment from Singapore, other countries should get a message for investment potential in Bangladesh.

He said the country’s electricity generation will reach the 15,000 MW landmark within the current year.

He said the government has been implementing a mega-plan to attain self-sufficiency in the power sector.

The function was also addressed by Power secretary Monwer Islam, PDB chairman Shamsul Hasan Mia and Sembcrop executive Vice President Tan Cheng Guan.