ADB lends $583 mn for Reliance Power’s 750-Mw project in Bangladesh

ADB lends $583 mn for Reliance Power’s 750-Mw project in Bangladesh

New Delhi, Dec 5: ADB’s financing package includes loans and partial risk guarantees for the power generation facility, as well as for the LNG terminal. The total project cost is approximately $1 billion.
“ADB’s partnership with Reliance Power will help Bangladesh scale up its energy infrastructure to sustain and support the country’s economic growth.” Michael Barrow, director-general of ADB’s Private Sector Operations Department, said: “ADB’s role as a direct lender and guarantee provider will enable Reliance Power to mobilize much needed long-term debt financing and will help in attracting new lenders to Bangladesh.”
Diversifying Bangladesh’s sources of energy is critical for the country as demands for natural gas have placed significant pressures on the country’s domestic gas reserves. New LNG import facilities will enable the existing gas-department infrastructure to remain viable while opening Bangladesh’s access natural gas from global markets. ADB’s support will help Reliance Power to develop an initial approximately 750 megawatts (MW) of gross power generation capacity and terminal facilities for LNG import. Reliance Power plans to increase its power generation capacity to around 3000 MW in Bangladesh. Energy from the power plant will be sold to the country’s electricity grid under a long-term power purchase agreement with the Bangladesh Power Development Board.
Anil Ambani-promoted Reliance Power on Tuesday said the Asian Development Bank’s (ADB’s) board of directors had approved debt financing and partial risk guarantees totalling $583 million to develop the company’s Liquified Natural Gas (LNG) terminal and 750-Mw power project in Bangladesh.