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Reliance Power, JERA Co ink loan agreement worth USD 642 million

Friday, 31 Jul 2020
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Reliance Power and JERA Company through their project company are developing a new gas-fired power generation project in Bangladesh.

The project company has now signed a loan agreement for full financing totaling USD 642 million with a group of banks that includes the Japan Bank  for International Cooperation (JBIC).

The project is to build, own and operate (BOO) 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 (PPA) with the Bangladesh Power Development Board (BPDB) for a  period of 22 years from the start of commercial operation.

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.

 
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