Final loan agreement for Rooppur nuclear on Tuesday

Sun Online Desk

25th July, 2016 02:31:16 printer

Final loan agreement for Rooppur nuclear on Tuesday

Final loan agreement between Bangladesh and Russia for Rooppur Nuclear Power Plant (RNPP) is going to be signed tomorrow in Russian capital Moscow.


To this end, a five-member team led by Science and Technology Minister Yeafesh Osman is now in Moscow to strike the deal for the biggest ever-project in terms of investment in the country, RNPP Project Director Shawkat Akbar told state-run BSS news agency today.


He said Russia will provide US$ 11.38 billion as state credit among the entire cost of US$ 12.65 billion.


Terming the signing of loan agreement as another progress to move forward the RNPP project near to implementation, Akbar said: "we would make order for the main equipment in this year while credit utilization would begin from the next year."


He said Russia will provide US$ 11.38 billion at 1.75 percent interest plus LIBOR (London Interbank Offered Rate) in the project with a provision to realize the investment in 28 years with a 10-year grace period.


Bangladesh has to start the repay of the loan from 2027 with two installments annually.


Russia is providing all technical assistance and equipment for the RNPP, the country's first ever nuclear power plant that was initiated first time in 1961.


The RNPP project director said Bangladesh would join the nuclear club from August 2017, as the RNPP Company Limited would start construction of reactor for the power plant on January 2017.


Earlier on December 25 last year, Bangladesh and Russia signed a general contract for implementation of the proposed RNPP Project. Later, both sides certified the agreement on May 17 last and Bangladesh government approved it on June 27 while Russia gave nod to the agreement on July 18.


As per the agreement, Russian state-run Atomstroyexport would set up the two-unit nuclear power plant having the capacity to generate 2,400MW of electricity during a 50-year lifecycle.


The first unit is expected to go into production in 2022 and the second one in 2023. However, the government has wished to launch the production of the first unit in 2021 when the country would celebrate golden jubilee of its independence.


Establishment of nuclear power plant was first initiated in 1962, which was witnessed no sign of materialization in last 50 years. Later, the Awami League led government took decision in 2009 to install the nuclear power plant and passed a bill regarding the RNPP in the parliament in 2010.


Prime Minister Sheikh Hasina laid the plant's foundation stone in October 2013.


Parliament passed a bill in August 2014 to form the Nuclear Power Plant Company Bangladesh, a unit under the Bangladesh Atomic Energy Commission, to run the plant.