Reliance Power on Monday said it has signed agreements with Bangladesh Power Development Board (BPDP) for phase I of 750 MW lNG power project at Meghnaghat near Dhaka entailing an investment of around $1 billion.
“Reliance Power today executed project agreements with Bangladesh Power Development Board (BPDB) for phase I of 750 MW lNG power project at Meghnaghat, near Dhaka in Bangladesh,” Reliance Power said in statement.
According to statement, these agreements include Power Purchase Agreement (PPA) and Implementation Agreement (IA) for the proposed integrated combined cycle power project.
These agreements were exchanged in the presence of Prime Minister of Bangladesh, Sheikh Hasina at a business summit organised by the CII here on Monday, it said.
Reliance Power has also signed an MoU with PetroBangla to set up 500 mmscfd lNG terminal at Kutubdia Island near Chittagong in Bangladesh, it added.
The company said that the definitive agreements for setting up the lNG terminal will be executed with PetroBangla shortly.
The full lNG terminal capacity will be used by PetroBangla to meet huge demand for power and other industries and replace costly and highly polluting fuels.
It said, “Reliance Power will install world-class equipment procured from internationally reputed original equipment manufacturers previously for its 2,250 MW combined cycle power project at Samalkot in Andhra Pradesh, India, which will be relocated to Bangladesh in a phased manner.”
Reliance Power had signed an MoU on June 6, 2015 with the the BPDB to set up the integrated project, during Prime Minister Narendra Modi’s visit to Dhaka.
The phase-I will have an investment outlay of nearly $1 billion which is the largest foreign direct investment in Bangladesh, the company claimed.
Financing of the project is under consideration of Asian Development Bank (ADB) and a consortium of lenders, it said.
Reliance project will give a tremendous boost to the economic and industrial growth of Bangladesh and help to enhance the energy security with clean, green and reliable lNG based power.