Reliance Power, JERA sign loan deed for full financing of gas-fired thermal power project in B’desh
Reliance Power Limited and JERA Co., Inc. through their project company, are developing a new gas-fired power generation project in Bangladesh. The project company has now signed a loan agreement for full financing totaling $642 million with a group of banks that includes the Japan Bank for International Cooperation (JBIC). According to a Reliance Power filing with the exchanges, this project is to build, own, and operate a 745 MW (net output: 718 MW) natural gas combined-cycle power project in Meghnaghat, Naranganj, located approximately 40 km southeast of Dhaka. The electricity generated will be sold under a long-term power purchase agreement with the Bangladesh Power Development Board (BPDB) for a period of 22 years from the start of commercial operation. Reliance Power and JERA have taken the initiative in promoting the project. The project company agreed an EPC contract with Samsung C&T in July 2020. With this loan agreement, all major contracts required for the development of the Project have been completed. Going forward, Reliance Power and JERA will focus on full-scale construction and work steadily towards achieving commercial operation in 2022. “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.” said Anil D. Ambani, Chairman of Reliance Power. “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.” said Satoshi Onoda, President of JERA. While Reliance power holds 51 per cent, JERA holds the remaining 49 per cent equity in the project company, Reliance Bangladesh LNG and Power Limited. As per the power purchase agreement, it will sell to Bangladesh Power Development Board for 22 years with Government Guarantee. As per the Gas Supply Agreement, it will purchase from Titas Gas Transmission and Distribution Company (Titas) for 22 years. The commercial operation date planned is year 2022.
Cyprus asks Russia to use its clout with Turkey in natural gas row
Cyprus appealed to Russia on Thursday to help defuse tensions with Turkey over natural gas exploration in the eastern Mediterranean, a long-simmering row over jurisdiction in the energy-rich area. A Turkish seismic vessel, the Barbaros Hayreddin Pasa, sailed into waters off Cyprus earlier this week. Last week, Greece protested plans by Turkey to send another vessel, the Oruc Reis, to an area between Cyprus and the Greek island of Crete.. Turkey put off that project pending talks with Greece. In a telephone call with Russian President Vladimir Putin on Thursday, Cypriot President Nicos Anastasiades asked “for the intervention of the Russian president to Turkey, for Turkey to be convinced to cease its illegal actions,” Cypriot government spokesman Kyriakos Koushios said in a written statement. “The Russian president … promised to intervene towards [Turkish President Tayyip] Erdogan to de-escalate the crisis, but also for involvement in a creative dialogue to solve the Cyprus problem,” Koushios said. Putin, he said, was “gravely concerned’ at the situation. European Union members Greece and Cyprus are at odds with Turkey over overlapping claims to offshore hydrocarbon reserves. Nicosia’s call to Putin, considered close to Erdogan, is possibly the most tangible sign yet of concern that tensions could get out of hand. Relations between Turkey and Greece dipped to a new low last week after Turkey’s navy issued an advisory for seismic surveys — normally a precursor to hydrocarbons research — in waters the Greeks said was theirs. The two countries disagree on the limits of their respective continental shelves. Erdogan had requested any operations be put on hold as a constructive approach to negotiations with Greece. But Turkish Defence Minister Hulusi Akar said Turkey had the right to carry out energy exploration in the eastern Mediterranean. “Carrying out exploratory work to benefit from the resources in marine areas under the authority of Turkey and (northern Cypriot) licensed areas … is our right and we will definitely exercise it,” he said. While Greece said Turkey had taken a positive step by putting off plans for surveys between Cyprus and Greece, it said it was concerned operations around Cyprus had not ceased.