Reliance Power and JERA have secured a loan of $642m from a group of banks, to build, own and operate a 745MW natural gas-fired thermal power plant near the capital of Bangladesh, Dhaka.

The banks that have agreed to provide the loan include the Asian Development Bank (ADB), Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), Mizuho Bank, Sumitomo Mitsui Banking, MUFG Bank and Société Générale.

With a net output of 718MW, the natural gas-fired power plant will be located in Meghnaghat, Naranganj, about 40km southeast of Dhaka.

The power plant project is being developed under a project company owned by Reliance Power and JERA with 51% and 49% of stakes respectively. The project company had selected Samsung C&T last month for the engineering, procurement and construction (EPC) contract.

Reliance Power chairman Anil Ambani said “We are delighted to achieve financing tie-up for this landmark project, which is the largest foreign direct investment and the largest IPP in Bangladesh, with a consortium of banks led by JBIC.

“It represents one of the largest funding tie-ups for a project in Bangladesh’s Power Sector.”

The electricity generated from the power plant will be sold under a long-term power purchase agreement with Bangladesh Power Development Board (BPDB) for 22 years from the start of commercial operation.

The power plant is  expected to enter into commercial operations in 2022.

Fuel supply agreement for the power plant was signed with Titas for a period of 22 years.

JERA president Satoshi Onoda said: “In Bangladesh, where the high growth in electricity demand is expected to accompany the steady economic development, we aim to contribute to the country’s economic expansion through our participation in power generation and infrastructure businesses, including this Project.”

GE to supply turbines and generators for the power plant

For the thermal power plant, General Electric (GE) has been selected to supply its GE 9F gas turbines, one GE D11 steam turbine and three H53 generators.

The power plant will use re-gasified liquid natural gas (LNG) to generate enough electricity to power more than 850,000 Bangladeshi households.

GE South Asia Gas Power CEO Deepesh Nanda said: “GE has been at the forefront to keep its customers ahead in the technology curve by offering advanced solutions for the upcoming large-scale power plants in Bangladesh. Powered by GE’s F-class technology, the new 718 MW power plant will set global benchmarks in terms of fuel efficiency and operational reliability.

“The electricity from the power plant will contribute towards improving the per capita energy consumption in Bangladesh.”