The project will be set up within 36 months of signing the agreements
Japan's Energy for a New Era (JERA), one of Japan's largest power utilities, has signed a partnership agreement with Reliance Power for jointly setting up a 750 MW gas based combined cycle power project (Phase-1) at Meghnaghat, Bangladesh.
Under the agreement, Reliance Power will hold 51% stake while JERA will hold 49% stake in the joint venture company, reports Indian business daily Business Standard.
The project will be set up within 36 months of signing the agreements.
The Bangladesh Power Development Board will buy electricity from the project for 22 years.
Bangladesh had previously signed an agreement on Sunday to buy electricity from India’s Reliance Power over the next 22 years.
Reliance plans to invest about $1 billion to set up a local plant by 2022 to provide the electricity.
The plant will be built at Meghnaghat in Narayanganj, over 20 km (12.4 miles) southeast of Dhaka.
Bangladesh’s installed power capacity is more than 20,000 MW and the country aims to provide electricity to all of its more than 160 million people by 2020.