Bangladesh Power Development Board (BPDB) on Thursday signed a power purchase agreement with United Chattogram Power Limited (UCPL) to set up a 590 MW gas-based combined cycle power plant in Anwara, Chattagram.

As per the contract, the UCPL, a subsidiary of United Group, has the option to operate through natural gas, if available, or through imported re-gasified liquefied natural gas (R-LNG).

The UCPL will set up the plant on 12.5-acre of land in Anwara and start commercial operation by January 28, 2026.

Also read: Bangladesh to extend deal with India on power import

Two Japanese firms will have 40 percent stake in the project while United Group will hold the remaining 60 percent, BPDB officials said.

Under the PPA, the state-owned principal entity in the power sector will purchase electricity from the plant over a period of 22 years at a tariff of US Cents 3.6867 (equivalent to Tk 2.95) per kilowatt hour if the plant is run through natural gas.

If it uses R-LNG, the tariff will be US Cents 6.8043, equivalent to Tk 5.44) per kilowatt hour (each unit).

At a function at Biduyt Bhaban, chairman of United Group and managing director of UCPL Mainuddin Hasan Sharif and BPDB secretary Saiful Islam Azad signed the contract on behalf of their respective sides.

Also read: Bangladesh to formulate integrated energy-power sector master plan with focus on 3E+S concept

Power secretary Habibur Rahman and BPDB chairman Belayet Hossain spoke on the occasion while other senior officials of the power division, BPDB and UCPL were present at the function.

Two more contracts—implementation agreement (IA) with Power Grid Company of Bangladesh (PGCB) and gas supply agreement (GSA) with Karnaphuli Gas Distribution Company Limited -- were also signed at the function.