The agreement, signed in Dhaka on Monday by Ginanjar, the vice president of Pertamina for New Renewable Energy and Chairman of BPDP Khaled Mahmood with visiting President Joko Widodo and Prime Minister Sheikh Hasina witnessing.
The agreement was a follow-up of an MoU signed earlier by the Indonesian Ministry of Energy and Mineral Resources and the Ministry of Power, Energy and Mineral Resources of Bangladesh on 15 September 2017.
Under the earlier MoU, Pertamina was to build an integrated project in Bangladesh consisting of Independent Power Producer (IPP) Combined Cycle Gas Turbine (CCGT) Power Plant with a capacity of 1,400 MW.
The power plant would be connected with an LNG receiving facility which consists of Floating Storage and Regasification Unit (FSRU), infrastructure of mooring and off loading, as well as gas pipeline both sub-sea and onshore.
In the project, BPDB will be the off taker of power produced by the integrated facility.
The project is estimated to cost US$2 billion expected to be completed in three years after the financial closing. The plan is construction would start in 2019.
President Joko Widodo visited Bangladesh as part of his tour of South Asian nations also including India, Pakistan, Sri Lanka, and Afghanistan.