Bangladesh and Russia are expected to sign a general contract this month for the construction and commissioning of Rooppur Nuclear Power Plant in Pabna, at a cost of $12.65 billion.
The cabinet purchase committee yesterday approved the $12.65 billion contract with Russia to build the 2,400MW nuclear power plant. The approval came at a meeting of the cabinet body, with Finance Minister AMA Muhith in the chair.
“We hope that the Atomic Energy Commission of Bangladesh on behalf of Bangladesh and Atomostroyexport on behalf of Russia will finalise the deal this month,” Science and Technology Minister Yeafesh Osman told the Dhaka Tribune yesterday.
Yeafesh said Russia would provide 90% of the funds on credit at an interest rate of Libor plus 1.75%. Bangladesh will have to pay back the loan in 28 years with a 10-year grace period.
On December 15, the government finalised the amount for the biggest-ever investment project in the country’s history by inking an initial agreement with Russia.
Earlier, an inter-governmental agreement for the provision of a $500 million Russian loan to finance engineering design, site development and personnel training was signed in January 2013.
On November 2, 2011, Bangladesh and Russia signed an agreement for the installation of nuclear power plant at Rooppur in Pabna.
Of the two-unit power plant with 1,200MW capacity each, the first unit is expected to begin operating by 2021 and the second unit by 2022. `The Rooppur nuclear power plant will be constructed using two VVER-1200 nuclear reactors that have a 60-year lifespan.
Source: Dhaka Tribune
