Reliance Power and Japan-based JERA Co Inc, which are developing a new gas-fired power generation project in Bangladesh, have signed a loan agreement for full financing totaling $642 million.
The loan has been signed with a consortium of banks including the Japan Bank for International Cooperation (JBIC) for a 745-MW natural gas combined-cycle power project at Meghnaghat in Naranganj, about 40 km southeast of Dhaka. The electricity generated will be sold under a long-term power purchase agreement with the Bangladesh Power Development Board for a period of 22 years from the start of commercial operation. Further, Reliance Power and JERA will focus on full-scale construction and work steadily towards achieving commercial operation in 2022.