Govt okays terms, conditions on $11.38b Russian credit

The government has approved the terms and conditions of U$ 11.38 billion credit pledged by the Russian government for setting up the Rooppur Nuclear Power Plant (RNPP) in Pabna district, officials said.
The standing committee on non-concessional loan gave approval to the terms and conditions on June 30 last that had been sent to the cabinet for vetting, they added.
The amount of credit and the rate of interest were fixed at the draft credit contract signed between the two governments, they also said.
A negotiation on the interstate credit deal has already been held for the construction of the nuclear power plant. A minutes of discussion has also been held between the two governments and the draft interstate credit contract countersigned, a senior official of the Economic Relations Division (ERD) told the FE over phone on Friday preferring anonymity.
The proposal for credit has been sent to the cabinet division for approval, considering its importance, he added. The rate of interest is 1.75 per cent (06 months LIBOR+1.75). The grace period of the loan will be 10-year and repayment period will be 20-year. Commitment fee and advance will be 0.5 per cent and 10 per cent respectively, according to the ERD data.
Recently, the committee has approved the draft deal on an interstate credit for RNPP. Initial work of RNPP has almost been completed involving U$ 500 million.
The Bangladesh Atomic Energy Regulatory Authority (BAERA) and Russian company JSC Atomstroyexport signed the contract on December 25 last year for the construction of the nuclear power plant at Rooppur in Pabna.
A general contract has already been signed. The main project work will begin in 2017 and be completed by 2024 under the proposed interstate credit. Russian Rosatom State Atomic Energy Corporation will build the 2,400MW nuclear power plant. Two units of the plant will have generating capacity of 1,200MW each.
One of the two units is expected to go into operation in October 2023 and another in October 2024 and final takeover will be in 2025.
Some U$ 12.65 billion will be needed for completion of the total plant.
The BAERA will issue licences, review documents at different stages of RNPP lifecycle, provision for peaceful use of atomic energy, safety supervision, quality control of equipment, according to the BAERA data.
The plant will have a lifespan of 90 years. Operating cost of the RNPP is minimal. Power will be available at cheap rate.
The nuclear power plant will be built at Rooppur, 200km northwest of Dhaka, under Paksey union in Ishwardi upazila of Pabna district.
The initiative to set up the nuclear power plant was taken in 1961.  Later in 1963, Rooppur was selected out of 12 proposed sites for the plant.
In 2001, the government adopted a national nuclear power action plan.
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