Dhaka, Moscow end negotiations for $11.385b Russian credit
Dhaka and Moscow have concluded negotiations for $11.385 billion Russian credit for Rooppur Nuclear Power Plant (RNPP).
A high-powered delegation, headed by Science and Technology Minister Yaefesh Osman which visited Moscow last week, held the negotiations during a two-day talks on May 18-19.
Prime Minister's Economic Affairs Adviser Dr Masihur Rahman, chairman of the Board of Investment SA Samad, Principal Secretary to the Prime Minister Abul Kalam Azad and top officials of economic relations division (ERD) were also in the delegation.
“We've successfully concluded the negotiation for the credit agreement and we hope the final credit deal will be signed within two months after necessary vetting from different ministries,” Additional Secretary to the Science and Technology Ministry M Anwar Hossain told the news agency yesterday.
Anwar, who was also a member of the delegation, informed that after conclusion of the negotiation, the both sides initiated a draft agreement on the proposed credit. “Now, the draft agreement will be sent to different ministries for vetting in both the countries,” he added.
Officials said the proposed credit amount of $11.385 billion is 90 percent of the $12.65 billion (equivalent to Tk 101,200 crore) construction cost of RNPP, which Russian Federation will provide as state credit to implement the project. It will also be the single largest foreign loan in the history of Bangladesh.
Official sources said the general agreement that Dhaka signed with Moscow on December 25 last year to build a 2,400MW nuclear power plant (having two units each with 1,200MW capacity) in Rooppur in northern district of Pabna will be effective soon after signing of the credit agreement.
Russian state nuclear agency Rosatom will build the plant of which first unit will come into operation in 2022 and the second one in 2023.
During the general agreement, it was agreed by both Dhaka and Moscow that Russia will provide the loan with an interest rate of six months London Interbank Offered Rate (Libor) plus 1.75 percent per annum, but it will never cross over 4 percent.
Bangladesh will pay off the loan within 28 years with a 10-year grace period.
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