JERA to invest more in BD energy sector
Japan's largest energy company JERA Co Inc plans to set up more energy infrastructure, including LNG and power generation projects in Bangladesh.
JERA President Satoshi Onoda said this during a courtesy call on Prime Minister Sheikh Hasina at her office on Monday.
Satoshi Onoda also told the Prime Minister that the Summit-JERA-Mitsubishi Consortium has already submitted an expression of interest (EOI) to the government for setting up an LNG terminal at Matarbari in Cox's Bazar.
The JERA president said they have already set up 335-MW power plant in joint venture with Summit Power Ltd of Bangladesh. "We want to establish some more power plants in joint venture with Summit," he said.
During the meeting, the Prime Minister sought more Japanese investment in Bangladesh's power and energy sector to meet the growing demand for electricity.
"The demand for electricity is rising fast with the increasing of population and development works in the country. So we need more investment in the sector for fulfilling the demand," she said. The Prime minister also highlighted her government's strides for boosting power generation in the country. The JERA president apprised the prime minister that their company is now generating 60,000 MW of electricity in Japan which is 50 percent of the country's total demand.
"We're making huge contributions to our economic development by producing this electricity," he said. Satoshi Onoda informed the Prime Minister that with the joint venture of Reliance Bangladesh Power and LNG Company, they are setting up a 718-MW power plant at Meghnaghat. "The power plant will go into operation by 2022," he said.
After the meeting, PM's Press Secretary Ihsanul Karim briefed reporters.
PM's Energy Adviser Dr Tawfiq-e-Elahi Chowdhury, State Minister for Power, Energy and Mineral Resources Nasrul Hamid Bipu, Prime Minister's Office (PMO) Secretary Tofazzel Hossain Mian, Japanese Ambassador to Bangladesh ITO Naoki and Summit Power Chairman Muhammed Aziz Khan were present. JERA Co Inc has acquired a 22 percent stake in Summit Power International Limited for $330 million last year and move to invest in Bangladesh's energy sector in large way.
By capitalizing on the strong business foundation established through JERA's investment in Summit Power, Bangladesh's largest independent power producer, JERA will strive to explore business opportunities in the country and further expand its earnings base.
"Much-needed technology and capital for Bangladesh's fast-growing power and energy market will be available from JERA with their vast knowledge and balance sheet. JERA by far could be our best partner," Summit's Founder Chairman Muhammed Aziz Khan said.
"This partnership will support our investment programme of $3 billion by 2022 in Bangladesh," he added.
As a shareholder of Summit, JERA will strive to increase the corporate value of Summit through the efficient construction and operation of its power generation facilities and contribute to the sustainable economic growth of Bangladesh.