Reliance Power Inks Pact with Japan’s JERA for 750 MW Power Project in Bangladesh

Reliance Power has announced that it has signed a partnership agreement with Japan's energy major, JERA, for mutually setting up 750 megawatt (MW) gas-based power project at Meghnaghat in Bangladesh.

Reliance Power will hold 51 per cent stake while JERA will hold 49 per cent stake in the joint venture company. The project agreements for Phase-1 were signed with the authorities in Bangladesh.

Scheduled to be set-up within 36 months of signing the agreements, this project will be the largest foreign direct investment in Bangladesh’s power sector.

Remarking on the development, Reliance Group Chairman Anil Ambani said: “This joint venture project will give a tremendous boost to the economic and industrial growth of Bangladesh and will enhance the energy security of the country with clean, green and reliable LNG based power.”

The agreement comprises a power purchase agreement and land lease agreement with Bangladesh Power Development Board, gas supply agreement with Titas Gas, a subsidiary of Petrobangla, and implementation agreement with the Ministry of Power.

“Together with Reliance Power, JERA will realize a stable power supply and contribute to sustainable economic growth in Bangladesh,” JERA President Satoshi Onoda said.