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China Huadian strikes coal deal in Bangladesh

The Hong Kong subsidiary of China Huadian Corporation will build a 1,320 megawatt coal-fired power plant in Bangladesh, reports Caixin Global. The deal was signed on May 6 with Bangladesh Power Development Board. The joint venture will build a plant with generation capacity totalling 8% of Bangladesh’s national power generation. Data from an Indian thinktank shows China has helped finance seven coal-fired power plants in Bangladesh.

The country is seeking to rapidly expand its power sector and to provide electricity access to its population within the next three years. It relies on natural gas for most of its power generation but distribution bottlenecks and supply shortages have prompted a shift towards coal. China continues to support coal-fired projects abroad even while its domestic coal plant construction is slowing, partly in response to efforts to curb air pollution.

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