Bharat Heavy Electricals (BHEL) is about to bag an engineering, procurement & construction (EPC) contract worth near Rs.400 crore for a 200 MW gas-based power venture in Bangladesh.

The contract will be awarded by Electricity Generation Co Bangladesh (EGCB) and the project will be funded by Asian Development Bank (ADB). The gas power station will be located in Siddhirganj, near Dhaka.

EGCB is a wing of the state-run Bangladesh Power Development Board (BPDB) which was specifically floated to implement, own and operate a 300 MW power plant at Siddhirganj. BPDB is the authority for planning, construction and operation of power generation and transmission facilities through out Bangladesh, and for distribution in urban areas except metropolitan city of Dhaka and its adjacent areas.

The project will involve setting up of an open cycle plant with two units of 100 MW each. It is slated for completion within 17 months from the date which BHEL has awarded the contract.. It is understood that ADB will lend $60 million under its credit programme while the Bangladesh government will fund the balance cost.