Bangladesh has signed a loan agreement of US$11.38 billion with Russia to facilitate construction of the main plant of 2,400 MW capacity..
The government-government contract was signed in Moscow today, said a statement ASE Group of Companies, the general contractor of the project, issued in Dhaka.
The loan being provided by Russia covers 90% of the project cost and carries an interest rate of LIBOR plus 1.75%. The interest rate will not exceed 4% with a repayment period of 30 years, including a grace period of 10 years. Disbursements will begin next year.
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 on behalf of their respective governments.
“Now we have both the legal and financial base for implementing the Rooppur nuclear power project,” Vladimir Sabushkin, senior vice-president of ASE Group of Companies, told the signing ceremony.
“For us, as the general contractor of the project, Russia’s state credit to Bangladesh is very important to begin the main construction works.”