The cabinet committee, on purchase, has approved power division’s proposal to construct a 150MW simple cycle gas turbine power plant at Kumargaon in Sylhet. The Chinese company Shanghai Electric Group was awarded the contract, reported The Independent.

The plant is said to cost about Tk704.52 crore (about $101.5m) and will meet electricity demands in the eastern region of Bangladesh.

The decision was taken at the committee meeting held at the cabinet division.

The tender proposal required Shanghai Electric to supply and install the simple-cycle gas-turbine plant on a turnkey basis within 540 days from the date of signing of the contract for the Power Development Board (PDB).

“We have selected M/S Shanghai Electric Group Company Limited of China as a lowest bidder to set up the new power station,” reported the website quoting Abul Maal Abdul Muhith, the finance minister of Bangladesh.

Four companies are said to have submitted bids for the project, where Shanghai became the lowest responsive bidder. China Chengda Engineering, Indian Bharat Heavy Electricals Limited (BHEL) and JV Gammon-Sadalmi were the other bidders.