Reliance Power, in a release, said that its gas-based power project in Bangladesh, being developed in joint venture with Japanese utility JERA Co Inc, has attained financial closure.
“The project company has achieved financial closure for the project with a group of lenders that includes Japan Bank for International Cooperation (“JBIC”) and Asian Development Bank (“ADB”) and all requisite conditions for availing drawdown under the loan agreements have been satisfied,” the release said.
The Notice to Proceed (NTP) has been issued by the project company to Samsung C&T, who in turn has issued the NTP to Samalkot Power for supply of equipment. Samalkot Power will supply one module of world-class equipment procured from internationally reputed original equipment manufacturers to the Bangladesh project (first phase).
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Build, Own, Operate
The project is to build, own, and operate a 745-mw (net output: 718 mw) natural gas combined-cycle power project in Meghnaghat, Narayanganj, located approximately 40 km southeast of Dhaka. This capacity represents the first phase of the project. The electricity generated will be sold under a long-term power PPA with the Bangladesh Power Development Board (“BPDB”) for a period of 22 years from the start of commercial operation.
From AP to Bangladesh
It may mentioned that Samalkot Power Ltd was to set up a 750-mw gas-based power plant in Andhra Pradesh but the project turned defunct owing to lack of gas supplies. In 2019, Reliance Power announced a debt-restructuring deal with US Exim Bank for this defunct project. Accordingly, the company decided to relocate the equipment from the project to Bangladesh and subsequently, inducted Japanese utility JERA as a partner for developing the 750 mw-gas based combined cycle power project.
Approval from US Exim Bank
Reliance Power’s wholly-owned subsidiary Samalkot Power Ltd has also received approval from the Export-Import Bank of the United States (US Exim Bank) to sell one module of equipment (Module 1) to Samsung C&T Corporation of South Korea, who is the EPC contractor for the project, for around Rs. 1,540 crore.
(Featured photograph sourced from www.jera.co.jp)
