Radio New Zealand - Te Reo Irirangi o Aotearoa

Power station deal for Bangladesh

Updated at 5:58 am on 30 January 2012

Electricity companies in Bangladesh and India have signed a deal to build a $US1.5 billion plant to help address chronic power shortages in Bangladesh.

The coal-fired plant will produce 1300 megawatts of electricity, about one fifth of the country's daily needs.

Bangladesh relies on old gas-fired plants for its power and experiences daily electricity shortfalls.

The BBC reports deal was signed in Dhaka on Sunday by the Power Development Board of Bangladesh and National Thermal Power Corporation of India.

The Bangladeshi government says it needs to build more stations to meet growing demand for electricity.

Erratic supplies are blamed for hampering industrial production and economic growth.

Bangladesh also signed a deal with Russia last November for two new nuclear plants, which should produce 1000 megawatts each when they come online in 2018.

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