Kazi Zahidul Hasan :
Bangladesh on Friday signed a deal with Russia to set up two nuclear power plants at a cost of $12.65 billion.
Each of the plant will have 1,200 megawatt capacity.
Bangladesh Atomic Energy Commission (BAEC) Chairman Manirul Islam and Senior Vice-President Vladimir Savushkin of Russian Atomstroyexport, a subsidiary of Rosatom, signed the deal on behalf of their respective sides.
Finance Minister AMA Muhith and Science and Technology Minister Yafes Osman were present at the signing ceremony held at Hotel Sonargaon in the city.
“The construction work will begin early next year at Rooppur in Iswardi of Pabna district,” said Kamrul Islam Bhuiya, a spokesman for the Ministry of Science and Technology.
He said Russia will finance up to 90 per cent of the total cost as credit with an interest rate of Libor plus 1.75 per cent.
Bangladesh will payback the total loan within 28 years with a 10-year grace period.
Terming the deal as a ‘historical one,’ Muhith said it would be the country’s biggest power project.
He said the first power plant is expected to begin operating by 2022 and the second by 2023.
In June, Rosatom submitted a feasibility report on the plant to Bangladesh Atomic Energy Commission. The Russian corporation said the plant would use a new generation reactor that has a lifespan of 60 years with an option of extending it for 20 years.The reactor contains improved safety features and its passive safety system is capable of working for 72 hours in case of any critical or emergency situation, the organization said.
Rosatom will maintain the plant for the first year of its commercial operation before handing over its control to the Bangladesh authorities.
Fuel costs for the first year will be covered by Rosatom and the Bangladesh government will take over it later on.
In 2009, the government had initially estimated that the nuclear power plant would cost between $3 billion and $4 billion.
However, similar plants are now being built by Russia in different countries with costs ranging from $10 billion to $13 billion.
Prime Minister Sheikh Hasina laid the foundation of this power project at Rooppur in October, 2013. A bill was passed in Parliament in August this year to establish a company to run the nuclear power plant.
According to the law, BAEC will own the Rooppur Nuclear Power Plant while the Nuclear Power Plant Company, Bangladesh will run it.
The initiative to set up the nuclear plant was taken in 1961. Later in 1963, Rooppur was selected out of 12 proposed sites for the plant.
As per the agreement, Russia will take back the nuclear waste generated by the plants.
