The government plans to create a hub for generating 9,000 megawatts of electricity at Payra area of Patuakhali to uplift the southwestern region.
State Minister for Power and Energy Nasrul Hamid disclosing the plan on Friday while visiting the construction site of a 1320 MW power plant in the area.
Nasrul Hamid said Payra will be another power hub like the two others being created in Maheshkhali and Matarbari in Chittagong in the eastern region.
"We have drawn up the plan considering the region, which remained under-developed compared to other regions of the country," he said.
The junior minister said the power hub will require about $12 billion investment.
The state-owned North-West Power Generation Company Ltd (NWPGCL) will implement some projects having total 6000 MW capacity, he said.
"The remaining 3000 MW will come from investment by other state-owned companies," he said.
The state minister visited the 1320-MW plant site along with a group of journalists from Dhaka.
NWPGCL and Forum for Energy Reporters Bangladesh (FERB) jointly organised the tour.
The NWPGCL is installing the coal-based power plant in joint venture with Chinese state owned company CMC (China National Machinery Import and Export Corporation).
Nasrul Hamid said about $160 billion is being spent for the project of which 80 per cent is debt.
"Rest 20 per cent is equity investment by the Bangladesh side and Chinese side where each has 50 per cent share," he said.
According to UNB, the State Minister said the plant will use coal coming from Indonesia and Australia and the coal will be utilised in a process so that it would not create any pollution in the area.
NWPGCL managing director A M Khurshedul Alam said the plant have two units of each 660 MW.
"First unit of the plant is expected to come into commercial operation in April 2019 and second unit in October of the same year," he said.