Russia offers supplier's credit for 420MW units

Russian Energy Minister Sergey A Oganesyan yesterday proposed to set up two more 210-megawatt power units at Siddhirganj under supplier's credit, a lending system the government discourages.

State Minister for Power Iqbal Hasan Mahmud in response said the proposal is acceptable if the Russian government is willing to change the suppliers' credit for one of the two plants into state credit.

For the other plant, the minister suggested the supplier's credit be designed on the basis of same terms and conditions outlined for availing loans of the World Bank (WB) and the Asian Development Bank (ADB).

"The Russian minister has told me that our suggestions will be discussed at a joint commission of Russia and Bangladesh," Mahmud told reporters at his Secretariat office yesterday. "The joint commission will decide if the supplier's credit proposal can be modified."

The Russian energy minister also told the state minister that 20 percent of the power plants in Bangladesh are Russian-made. The power board and its local experts are well aware of Russian technology and machinery. He added that the Russian power companies are comfortable working in Bangladesh.

Russia has proposed to set up Siddhirganj units 2 and 3 at a cost of around $400 million. The government is considering setting up a 210-megawatt unit 2 using local resources, the minister said.

The Siddhirganj unit 1, set up by Russian company TPE, took 13 years to complete. Prime Minister Khaleda Zia will inaugurate the plant on December 18.

The government plans to make Siddhirganj a major power hub in the coming years by setting up more plants there, Mahmud said.

MEETING WITH PM
The Russian minister also called on Prime Minister Khaleda Zia at her office yesterday and said his country would extend cooperation to Bangladesh's energy sector apart from the power sector.

Oganesyan who is leading a five-member delegation to Bangladesh to see the 210-megawatt Siddhirganj Power Plant said his country is also eager to go for further investment in power sector in Bangladesh.

He said Russia can help Bangladesh develop expertise in power and energy sectors by providing the students in those fields with training facilities. The prime minister appreciated the proposal.

Khaleda said Russia is supporting the country's power sector since the independence and the magnitude of cooperation is increasing gradually.

She mentioned the investment climate in Bangladesh and invited more Russian investments in other sectors.

Stressing the need for enhancing trade and commerce between the two countries, the prime minister said bilateral relations can be consolidated further through increased trade.

She suggested exchange of business delegations between Bangladesh and Russia to expand bilateral trade and proposed that Russia can import ceramic products, readymade garments and other products from Bangladesh.

Khaleda renewed her invitation for Russian President Vladimir Putin to visit Bangladesh.