Reliance Power, JERA sign loan agreement for 745 MW gas-fired power generation project in Meghnaghat

Reliance Power Limited and JERA Co., Inc., 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 US$642 million with a group of banks that includes the Japan Bank for International Cooperation (JBIC).

This project is to build, own, and operate a 745 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 with the Bangladesh Power Development Board (BPDB) for a period of 22 years from the start of commercial operation.

The project company agreed on 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. Reliance Power and JERA will focus on full-scale construction and work steadily towards achieving commercial operation in 2022.