$11.38b loan deal signed for nuclear power plant
Russia and Bangladesh yesterday signed an $11.38 billion loan agreement, paving the way for the main construction work of Rooppur Nuclear Power Project.
The inter-governmental loan agreement was signed in Moscow, according to a statement from the ASE Group of Companies, the general contractor of the project.
The Russian loan covers 90 percent of the project cost and carries an interest rate of LIBOR plus 1.75 percent. The interest rate will not exceed 4 percent.
The repayment period is 30 years, including a grace period of 10 years. Disbursement will begin in 2017.
Sergei Anatolyevich Storchak, deputy minister for finance of the Russian Federation, and Mohammad Mejbahuddin, senior secretary of the Economic Relations Department of Bangladesh, signed the agreement. Speaking at the event, Vladimir Sabushkin, senior vice-president of ASE Group of Companies, said: “Now we have both the legal and financial base for implementing the Rooppur nuclear power project.”
“For us, as the general contractor of the project, Russia's state credit to Bangladesh is very important to begin the main construction works.”
Bangladesh is borrowing the funds from Russia to build the 2,400-megawatt nuclear power plant.