Firms switch on Bangladesh power project

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Bangladesh power project

Baker McKenzie and Farooq & Associates counselled Reliance Bangladesh LNG & Power on its US$642 million financing of a 718MW gas-fired thermal power generation project in the South Asian country.

Clifford Chance and Dr Kamal Hussain & Associates representing syndicate of lending financial institutions and banks in the deal.

Baker acted as counsel to Reliance on the power purchase agreement with the Bangladesh Power Development Board and implementation agreement with the Government of Bangladesh.

The Baker McKenzie team was headed up by Martin David, partner and Asia-Pacific head of projects, alongside partners Kim Hock Ang and Andrew Zaw.

Reliance Bangladesh LNG & Power is a 51:49 joint venture between India’s Reliance Power and Japan’s JERA. It is the first time that a Japanese sponsor has taken a leading role in the development of a Bangladeshi power project, and the first time for Japan Bank for International Co-operation (JBIC) and Nippon Export and Investment Insurance (NEXI) to provide project financing in Bangladesh.

Clifford Chance partner Nicholas Wong (Singapore) oversaw an integrated cross-border team drawing upon Clifford Chance’s deep regional expertise, with partner Matthew Buchanan (Singapore) leading on the construction and procurement aspects of the project, partner Hans Menski (Tokyo) leading on financing aspects, and also comprising partners Nadia Kalic (Sydney) and Ross Howard (Singapore), senior associates Michael Pallaras (Hong Kong) and Dominik Kepinski (Perth), associates Christine Yassa and Myles Sim (Singapore), and trainees Dominic Behar (Tokyo) and Emma Durrell (Perth).

Clifford Chance represented the Asian Development Bank, JBIC, NEXI and commercial banks MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation and Société Générale SA.

The project will be located in Meghnaghat, approximately 40km southeast of the capital city, Dhaka, and is scheduled to begin operations in 2022. On completion, the plant will be the largest independent gas-fired power generation facility in Bangladesh, with total cost of the project estimated to be US$870 million.