Anil Ambani-led Reliance Power, which is executing a $1 billion integrated LNG terminal and power project in Bangladesh with debt financing and partial risk guarantee of $583 million from Asian Development Bank, has awarded ₹5,000 crore worth of EPC contract of the project to its parent firm Reliance Infrastructure, amounting to more than 77% of the project cost.
“Reliance Infrastructure Limited (RInfra) has won two prestigious EPC contracts in Bangladesh together valued at ₹5,000 crore. The projects were won on International Competitive Bidding (ICB),” said a statement from Reliance Infra, which owns 43% in Reliance Power.
The first EPC contract includes setting up the entire infrastructure of a 750MW LNG-based combined cycle power plant at Meghnaghat (Dhaka), while the second project is for building a 500 MMSCFD floating storage re-gasification unit (FSRU) based integrated LNG terminal project at Kutubdia Island. Both projects are in Bangladesh.
Both contracts are to be executed in a project schedule of 24 months and to be completed by 2019. The contracts for both the projects entail design, engineering, supply, transportation, erection, testing and commissioning processes. The integrated LNG terminal project works would include setting up jetty and onshore and offshore gas pipelines.
RInfra CEO-EPC Arun Gupta, said, “Our thrust on engineering, procurement and construction (EPC) has ensured the successful execution of all the EPC projects we have won. This power project win comes after winning an EPC order for ₹3,675 crore from NLC India Limited for setting up two Lignite based CFBC Thermal Power Projects of capacity 250 MW each.”
Reliance Power, in a communique to the exchanges, said that the step-down subsidiaries of the company incorporated in Bangladesh for development of the captioned integrated project, had awarded the contracts to Reliance Infra for project execution.
Reliance Power and Reliance Infra shares closed marginally at ₹36.45 and ₹440.6 in a weak Mumbai market on Wednesday.
