Categories: Agreements

RPower & JERA inks loan agreement for Bangladesh’s power plant

Reliance Power and Japanese energy major JERA have signed an agreement with a group of banks for their new gas-fired thermal power generation project in Bangladesh. The signed agreement will provide full finance of about $642 million (approx Rs 4,798 crore) for a new 745 MW natural gas combined-cycle power project in Meghnaghat in Bangladesh. This is one of the largest funding tie-ups for a project in Bangladesh’s power sector.

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With this agreement, Reliance Power and JERA will focus on full-scale construction and aims to work steadily towards achieving commercial operation in 2022. The electricity generated from the 745 MW natural gas combined-cycle power project will be sold under a long-term power purchase agreement with the Bangladesh Power Development Board (BPDB). This will be done for a period of 22 years from the start of commercial operation.

Important takeaways for all competitive exams:

  • Chairman of Reliance Power: Anil Ambani.
  • Prime Minister of Bangladesh: Sheikh Hasina; Capital: Dhaka; Currency: Taka.

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