DHAKA: Power Development Board (PDB) and Rural Power Company Limited (RPCL) Sunday signed a Memorandum of Understanding for setting up a 150MW power station at the first go under a government crash course for enhancing electricity generation.

Based on success of the first one, another bigger plant of 225megwatts will be built under their joint venture, according to the MoU signed between the two state-run bodies at a function at the PDB building.

PDB Secretary Azizul Islam and RPCL Managing Director (MD) Abdus Sabur inked the memo on behalf of their respective organizations.

The power station will be constructed at an estimated cost of T 1400 crore at Codda of Gazipur district, and PDB and RPCL will pay Tk 400 crore from their own sources. The rest of the funds will be coming from external sources.

Work on the power station is expected to be complete by 2012.

PDB Chairman SM Alambir Kabir, who attended the signing ceremony, termed the deal a historic event. “The government has set a target of producing 10,000MW power by 2015 and the planned power station will play a significant role in creating balance with the private companies,” he said.

Establishment of another 450MW power plant at Codda will depend on the success of the construction of this plant.

The PDB chairman further said tender for the plant will be floated within next one and a half months by forming a joint-venture company within next one month. And the work order would be given by the end of this year.