Reliance Power, JERA ink loan agreement with banks for Bangladesh’s power plant

Reliance Power and Japanese energy major JERA have inked a pact with a group with a group of banks for full financing, totalling $642 million (approx Rs 4,798 crore), for their new gas-fired thermal power generation project in Bangladesh.

This Project is to build, own, and operate a 745 MW (net output: 718 MW) natural gas combined-cycle power project in Meghnaghat, Naranganj, located approximately 40 km southeast of Dhaka. The electricity generated will be sold under a long-term power purchase agreement with the Bangladesh Power Development Board (BPDB) for a period of 22 years from the start of commercial operation.

Reliance Power and JERA have taken the initiative in promoting the project. The project company agreed an EPC contract with Samsung C&T in July 2020. 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.

“We are delighted to achieve financing tie-up for this landmark project, which is the largest foreign direct investment and the largest IPP in Bangladesh, with a consortium of banks led by JBIC. It represents one of the largest funding tie-ups for a project in Bangladesh’s power sector,” said Anil D. Ambani, Chairman of Reliance Power in a statement.