NEW DELHI :
Reliance Bangladesh LNG & Power Limited has signed a $642 million loan to fund its 745 MW gas-fired power project in India’s eastern neighbour, a Reliance Power release said today. The plant will be located about 40 kms southeast of capital Dhaka. The company agreed on an end-to-end power equipment purchase and construction contract with Samsung C&T in July.
Reliance Bangladesh LNG & Power is a 51:49 joint venture between Anil Dhirubhai Ambani Group’s Reliance Power and Japan’s JERA Co Inc.
The lenders are a group of banks including Japan Bank for International Cooperation, Asian Development Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, UFG Bank and Societe Generale. With this loan agreement, all major contracts required for the development of the project have been completed.
Notwithstanding the news of the funds for the project being tied up, Reliance Power share closed 3% down at ₹3.28 on the BSE.
A Reliance Power release claimed that this is the largest foreign direct investment in a power project in Bangladesh and is the largest independent power producing project in the country.
“In Bangladesh, where the high growth in electricity demand is expected to accompany the steady economic development, we aim to contribute to the country's economic expansion through our participation in power generation and infrastructure businesses, including this project," the release quoted JERA President Satoshi Onoda as saying.
Power from the plant, guaranteed by the country’s government, will be sold to Bangladesh Power Development Board for 22 years with gas supplies assured from Titan Gas Transmission & Distribution Company for as much period.