The Power Development Board on Monday signed agreements with a Chinese company for installation of two more peaking power plants, each having 50MW capacity.
Under the agreements, Dongfang Electric International Corporation of China will install a 50MW plant at Shantahar in Naogaon.
The PDB will pay the company Tk 320 crore for supplying equipment and installation of the plant within 15 months.
The Katakhali power plant will be installed at a cost of around Tk 312 crore by the same company under another turn-key agreement.
Bangladesh government will fund the two projects for furnace oil based plants which are supposed to run during the peak hours.
The government purchase committee approved the selection of the Chinese company on July 22. The Executive Committee of the National Economic Council had approved the projects on March 16.
The two power plants are part of a government plan to establish 10 fuel oil run peaking power plants with a total capacity of 820MW.
The generation cost of the electricity will be higher for the plants as these will be run with fuel oil as the country is going through a severe gas crisis.
