JERA takes 49 per cent stake in 750 MW gas-fired power plant in Bangladesh

• 5 years ago (2019-09-04)
• David Flin

Asia 892 Gas 393

---

Reliance Power has signed a partnership agreement with JERA , one of Japan’s largest power utilities, to jointly set up a 750 MW gas-fired combined cycle power plant, Phase 1 of a project at Meghnaghat, Bangladesh. Reliance Power will hold a 51 per cent stake, while JERA will hold a 49 per cent stake in the joint venture. The plant, when all phases are complete, will be 3000 MW.

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 project company will negotiate the EPC contract and loan agreements for the project.

Plant construction for Phase 1 is scheduled for completion in 2022.

Reliance Power will relocate one module from its combined cycle power project at Samalkot in Andhra Pradesh in India to this Phase 1 project.

JERA said in a press release that it has identified Bangladesh as a priority country for investment. It said that through its participation in this project, it aims to explore further business opportunities and contribute to the country’s economic expansion and enhance its revenue basis.