The power plant, which will be fuelled primarily by natural gas, with high speed diesel as backup fuel, is planned to be developed under a public-private partnership in the Sirajganj district of the country.
The project will be managed by Sembcorp Sirajganj Power, a joint venture entity between Sembcorp and North-West Power Generation, a subsidiary under the Bangladesh Power Development Board.
Scheduled to be completed in 2018, the combined cycle power plant will be primarily owned by Sembcorp with a majority 71% stake while the remaining 29% stake will be held by North-West Power Generation.
Sembcorp group president and CEO Tang Kin Fei said: "We are pleased to secure this project as it provides us with a platform to grow our power business in Bangladesh.
"Bangladesh offers strong growth potential and we see the opportunity for us to further grow our utilities and other businesses in the country."
The Bangladesh Power Development Board will purchase the power generated from the facility under a 22.5-year power purchase agreement.
North-West Power Generation managing director Khurshedul Alam said: "This is the first public-private partnership project with a foreign investor in the power sector in Bangladesh, and we are happy to be partnering Sembcorp in this landmark project.
"We believe that together we can help to meet the growing demand of electricity in Bangladesh."
Bangladesh is planning to increase its present electricity generation capacity by about 10GW over the next 10 years to address power crises.
Earlier in the month, the state-owned Coal Power Generation Company Bangladesh (CPGCBL) proposed its plan to invest around $4.6bn to develop two coal-fired power plants, each with a power generation capacity of 600MW.
