Reliance Power, JERA ink loan agreement with banks for new power plant in Bangladesh

Reliance Power said on Friday that it has signed a loan agreement, along with Japanese utility JERA, for $642 million with a group of lenders for their 745 megawatt gas-based project in Bangladesh. In September, Reliance Power inducted JERA as a partner for the 750 mw-gas based combined cycle power project it is setting up in Bangladesh as a part of its understanding with the country in 2015 to set up a total of 3,000 mw.

This project, a natural gas combined-cycle power plant, located approximately 40 km southeast of Dhaka will generate electricity to be to the Bangladesh Power Development Board for 22 years from the start of commercial operation. Reliance Power hold 51% stake while JERA will hold 49% stake in the joint venture company.

In 2018-19, Reliance Power had to undertake an impairment on its gas-based Samalkot unit after it went defunct due to lack of gas to run it. The company decided to move the equipment from the unit to Bangladesh in an attempt to monetize the unit.