Bangladesh and Russia on Friday signed a deal to set up two nuclear power plants with an investment at a cost of $12.65 billion, a government official said.
The construction will begin early next year at Ruppur in Iswardi, 160 km (100 miles) from the country’s capital Dhaka, said Kamrul Islam Bhyian, spokesman for the ministry of science and technology.
"Russia will finance up to 90 percent of the total cost as credit with an interest rate of Libor plus 1.75 percent," Bhyian told Reuters.
Bangladesh’s Finance Minister Abul Maal Abdul Muhith said it would be the nation’s biggest power project.
Of the two-unit nuclear power plants, each with 1,200 megawatt capacity, the first one is expected to begin operating by 2022 and the second by 2023.
Bangladesh will be paying back the loan within 28 years with a 10-year grace period.
The first year of its commercial operation, Russia’s state atomic energy corporation, Rosatom, will maintain the plant before handing it over to the Bangladesh authorities.