JERA to Participate in a New Gas-fired Thermal Power Generation Project in Bangladesh
JERA Co., Inc. (“JERA”) has entered into an agreement with Reliance Power Limited (“Reliance Power”) to acquire a 49% interest in a new gas-fired thermal power generation project in Bangladesh (the “Project”) now under development by Reliance Power. This is the first project participation by JERA in Bangladesh.
The Project is to build, own and operate a 750 MW natural gas combined-cycle power project at Meghnaghat, Narayanganj, located 40 km southeast of Dhaka. Under a long-term power purchase agreement with the Bangladesh Power Development Board (BPDB), the electricity generated will be sold for 22 years after commercial operation starts.
The project company, with support from sponsors Reliance Power and JERA, will negotiate the EPC contract and loan agreements for the project in order to make final investment decision for this Project.
JERA has identified Bangladesh as a priority country for investment in view of the high expected growth in demand for electricity accompanying steady economic development. Through its participation in the Project, JERA aims to explore further business opportunities and contribute to the country's economic expansion and enhance its revenue basis.
The Project is in line with JERA's policy of active participation in projects from early stage of development with a high equity ratio. JERA will dedicate executives and employees to the Project, and aims to ensure sound construction and efficient operation of the Project.
JERA will continue enhancing its enterprise value by expanding its overseas power generation business, taking into account global market trends, profitability and associated risks.
Outline of Reliance Power
Company Name : Reliance Power Limited
Chairman : Anil Dhirubhai Ambani
Location : India
Reliance Power Limited, a part of the Reliance Group, is India’s leading private sector power generation and coal resources company. The company has one of the largest portfolios of power projects in the private sector in India, based on coal, gas and renewable energy, with an operating portfolio of 5,945 megawatts.
Appendix: Outline of the New Gas-fired Thermal Power Generation Project in Bangladesh