Jera Picks Up Stake in Bangladesh Power Project
Japan’s Jera has entered into an agreement to acquire a 49% interest in a proposed gas-fired thermal power generation project being developed by India’s Reliance Power in Bangladesh, the two companies said in separate statements issued September 3. Reliance will hold the remaining 51% stake in the project.
The project is to build, own and operate a 750 MW natural gas combined-cycle power project at Meghnaghat, Narayanganj, located 40 km southeast of Dhaka. Under a long-term power purchase agreement with the Bangladesh Power Development Board (BPDB), the electricity generated will be sold for 22 years after commercial operation starts.
Reliance Power had signed an initial agreement in June 2015 with the BPDB, government of Bangladesh to set up the project, during the visit of Indian prime minister Narendra Modi’s to Dhaka.
“This joint venture project will give a tremendous boost to the economic and industrial growth of Bangladesh and will enhance the energy security of the country with clean, green and reliable LNG based power. We are excited to be part of the growth story of Bangladesh in partnership with Jera,” Anil Ambani, chairman, Reliance Group of Companies said.
Jera said it has identified Bangladesh as a priority country for investment in view of the high expected growth in demand for electricity accompanying steady economic development. The project is in line with Jera's policy of active participation in projects from early stage of development with a high equity ratio, it said.
“It is our great honour to participate in the largest IPP in Bangladesh. Together with Reliance Power, a leading private power company in India, Jera will realise a stable power supply and contribute to sustainable economic growth in Bangladesh” Satoshi Onoda, president Jera, said.