OREANDA-NEWS. Bangladesh Power Development Board (BPDB) and Larsen & Toubro (L&T) have signed a contract to set up a 225 megawatt, gas-based power plant in Sikalbaha, Chittagong in Bangladesh.

The contract, which is valued at about USD 200 million, was secured by L&T in May, 2014.

The contract was signed between BPDB Secretary Mohd Zahirul Haque and L&T Vice-president Saurabh Indwar at an event held in Dhaka on August 24. The event was attended by Bangladesh Power Division secretary, Mr Monowar Islam, Bangladesh State Minister for Power, Energy & Mineral Resources, Mr Nasrul Hamid, BPDB Chairman, Mr.Abduhu Ruhulla, Charge d'Affaires of Kuwait Embassy in Dhaka, H.E Nasser al Onaizi, Petrobangla Chairman Prof.Hossain Monsur and L&T Whole-time Director (Power, Minerals & Metals) Mr Shailendra Roy.

Four development partners of Government of Bangladesh from the Middle-East (Saudi Arabia, Kuwait, UAE and OPEC Fund) will finance the project with a fund of approximately USD 167 million.

L&T's scope includes design, detailed engineering, supply, installation and commissioning of the power plant on a turnkey basis. L&T-Sargent and Lundy, a subsidiary of L&T, will carry out the plant integration and detailed engineering.

Speaking at the event, Bangladesh State Minister, Mr.Nasrul Hamid said several countries and a number of international companies, including Indian companies, have shown their readiness to invest in Bangladesh due to prevailing congenial political and economic atmosphere.

This is the second gas-based power project secured by L&T in Bangladesh. L&T had recently been awarded a USD 280-million order for setting up the 360 MW Bheramara combined cycle power plant.

Highlighting L&T's capabilities, Mr Shailendra Roy said the Company has contributed enormously in building India's infrastructure by implementing landmark projects with international quality and environment, health and safety standards. L&T will carry the same spirit to Bangladesh and will also contribute to Bangladesh's growth story, Mr Roy added.

Bangladesh Power Secretary Mr Monowar Islam said he was impressed with the overall capabilities of L&T and was delighted that an organization of such high calibre would execute the Sikalbaha project.