Bangladesh and Russia would sign an $11.38 billion credit deal in Moscow on July 26 to implement the country’s first-ever nuclear power plant at Rooppur in Pabna.
“We will sign the credit deal with the Russian counterpart on July 26,” An official of Science and Technology Ministry said.
The Russian government has approved a deal to loan up to $11.38 billion to build the Rooppur nuclear power plant in Bangladesh, Russian RT news reported on July 18.
The Bangladesh cabinet, earlier on June 27, approved the draft of the inter-governmental state credit agreement to be signed between Bangladesh and Russia for constructing the Power Plant project with an estimated cost $12.65 billion, Bangladeshi officials said.
Among the amount, $11.38 billion will come from Russia and rest of the funding will be provided from Bangladesh own fund.
A high-profile government delegation has already reached in Russia to sign on state export credit deal for the construction of Rooppur plant’s main phase.
Science and Technology Minister Yeafesh Osman is heading the delegations comprising five members.
The four other members are M A Mannan MP, State Minister of Finance, Mezbah Uddin Secretary of the Economic Relations Division, Abul Mansur Md Faizullah, Additional Secretary of the Economic Relations Division and Anwar Hossain, Additional Secretary of the Science and Technology Ministry.
The loan will be used to pay for the construction of the plant from 2017 to 2024. Bangladesh will repay the money over 20 years in equal semi-annual installments starting from March 15, 2027.
The Rooppur nuclear power plant will be located on the east bank of the Ganges River 160 kilometers from Dhaka, the country’s capital.
It will have two reactors with 1,200 MW capacity each. The first reactor is planned to start in 2023, the second will be open a year later. The lifespan of the reactors is 60 years with an option to extend it by 20 years.
On December 25 last year, Bangladesh and Russia signed a general contract for the construction and commissioning of the nuclear power plant in Pabna at a cost of $12.65 billion.
According to the deal, Russia will provide 90% of the funds on credit at an interest rate of Libor plus 1.75%.
Bangladesh Atomic Energy Commission, under the Science and Technology Ministry, will implement the project.