Reliance Power, Jera Get Loan for Bangladesh Power Project
India’s Reliance Power and Japan’s Jera have signed a $642mn loan agreement for full financing of a gas-based power project they are developing in Bangladesh, Jera said on July 31.
The project is to build, own and operate a 750-MW combined-cycle power plant 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. The JV has also signed a gas supply agreement with Titas Gas, a subsidiary of Petrobangla for the supply of gas to the power plant.
Reliance Power signed an initial agreement in June 2015 with the BPDB and the government of Bangladesh on the project during the visit of Indian prime minister Narendra Modi to Dhaka.
Reliance Power went on to sign a partnership agreement on the plan with Jera last year. Reliance Power holds a 51% stake while Jera owning the rest 49%. The joint venture agreed an EPC contract with Samsung C&T this month.
“With this loan agreement, all major contracts required for the development of the project have been completed. Going forward, Reliance Power and Jera will focus on full-scale construction and work steadily towards achieving commercial operation in 2022,” Jera said.