Dhaka to sign $12.65 b N deal with Moscow today

Dhaka is set to sign $12.65 billion final deal with Moscow on Friday to build the 2,400 MW nuclear power plant in Rooppur.
According to officials at the Science and Technology Ministry, a visiting senior vice president of the Atomstroyexport, a subsidiary of Russian state nuclear agency Rosatom will sign on behalf of his country while the chairman of Bangladesh Atomic Energy Commission will ink the largest ever deal on behalf of Bangladesh.
Senior minister including AMA Muhith will witness the historic deal signing at function at Sonargoan Hotel in the city.
Cabinet Purchase Committee on Wednesday approved a $12.65 billion contract with Russia to build a 2400 MW Rooppur Nuclear Power Plant. Cabinet Purchase Committee on Thursday approved a proposal to sign the deal.
Officials said, this will be the final deal to be signed with Russia as a General Contract (GC), for construction of the Rooppur nuclear power plant. As per the proposed deal, the nuclear power plant will have two units each having 1200 MW. The first unit will come into operation by October 2023 while the second unit will come in October 2024.
Of the total amount of the deal, Bangladesh has to pay $1.265 bullion as 10 percent of the cost in advance while the remaining $11.385 billion come from Russia under supplier’s credit. The interest of the credit was set to be 6 months LIBOR-1.75 percent per annum which will not go to more than 4 percent. Taking into the current trend of LIBOR, the interest rate will not cross 2.55 percent, said the officials.
Bangladesh will have to repay the amount in 28 years with having a 10 years grace period. In the deal, commitment fee was fixed at 0.5 percent while utilisation period will be 7 years.
Earlier, Bangladesh signed a number of preparatory agreements including one a feasibility study that costs $551 million. After adding the cost, the total cost of the project will be $13.150 billion.