The state-run Bangladesh Power Development Board (BPDB) has signed a joint venture agreement with the Chinese firm to build the plant at Moheshkhali Island in Cox’s Bazar district, 415km south east from Dhaka.
The project, the first undertaken by CHDHK in Bangladesh, is expected to be completed inside four years.
Bangladesh State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that Maheshkhali is planned to be transformed into an energy hub within the next three to four years.
Earlier this year, the state-owned Coal Power Generation Company Bangladesh (CPGCBL) had begun construction on a 1.2GW Matarbaripower plant, also in Cox's Bazar District.
The $4.33bn Matarbari ultra super criticalcoal-fired power plant will feature two units of 600MW each.
Bangladesh, which is currently facing a power shortage of between 1,000MW and 1,500MW a day, is planning to provide electricity to all of its citizens by 2021.