Under the terms of the contract, Skanska will be responsible for the ground work as well as construction of the plant.
The power plant will utilize bio fuels such as wood chip and straw.
Delivery of fuel from the power plant will be done through a connecting railway.
Construction of the plant is likely to commence this month and is expected to be completed in two years.
Upon construction, about 50,000 households will receive heating from the plant.
