A company floated by the Bangladesh Army will produce 50 MW power at an army camp outside the national capital and sell it to the government.
The state-run Power Development Board (PDB) on Thursday signed agreements with the army's DPA Power Generation International Ltd and another firm, Sinha Power Generation Company.
Lt. Gen. Iqbal Karim Bhuiyan, chairman of Bangladesh Diesel Plant Ltd, said the Pagla plant is the first of its kind for the army. "We will purchase modern equipment for setting up the plant."
The army-run company will set up the 50 MW diesel-run power plant at Pagla Army Camp in Narayanganj district within the next four months, The Daily Star said.
Sinha Power will join the national grid within the next nine months.
The PDB will purchase power from DPA at Taka 13.96 per unit for the next three years, and from Sinha Power at Taka 7.77, according to the agreements. Taka 69 equals $1.
DPA Power Generation International is a joint initiative of the army-run Bangladesh Diesel Plant, Primordial Energy Ltd and Germany-based Aggretech AG.