Bangladesh and Russia have signed a general contract for the construction and commissioning of Rooppur Nuclear Power Plant in Pabna, at a cost of $12.65 billion.
The deal was signed at Sonargaon Hotel on Friday evening.
Md Manirul Islam, chairman of Bangladesh Atomic Energy Commission and Vladimir N Savuskin, vice president of Atomostroyexport signed the deal on behalf of their respective companies.
Speaking as chief guest in the ceremony, finance minister Abul Maal Abdul Muhit said, "A very old dream has been realized today".
"I was a government employee when the then Pakistan first thought of having a nuclear power plant in Rooppur. However, the Pakistan government shelved the plan for political reason and we thought that the dream of Rooppur Nuclear Power Plant ended.
"Now we are on the verge of entering the elite club of the countries who have nuclear power plants", he said.
The minister said that Russia has pledged to complete the two units of Rooppur Nuclear Power Plant by 2024.
Muhit said safety is the first concern in having nuclear plant for a country. "Nuclear fallout could be fatal for such a heavily populated country for Bangladesh ".
He also spoke about the disposal of nuclear wastage. "According to the contract Russia will take care of the burnt nuclear fuel and will dispose the nuclear wastage".
Science and Technology Minister Yeafesh Osman said nuclear technology should be used for developing countries as nuclear power plant provides cheapest electricity.
Tawfique-E-Elahi Chowdhury, energy advisor of Prime Minister Sheikh Hasina said the Rooppur Nuclear Plant is a new year's gift to people of Bangladesh from Sheikh Hasina.
"After the signing of general contract for Rooppur Nuclear Power Plant from today has entered into the prestigious club of countries which use nuclear power for peaceful purposes", he added.
Russian Ambassador to Bangladesh Alexander Nicolai said this day is a milestone in Bangladesh-Russia bilateral relationship.
"The nuclear power plant will be a testimony of friendship between the two countries,” the envoy said.
According to the deal, Russia would provide 90% of the funds on credit at an interest rate of Libor plus 1.75%. Bangladesh will have to pay back the loan in 28 years with a 10-year grace period.
On December 15, the government finalised the amount for the biggest-ever investment project in the country’s history by inking an initial agreement with Russia.
Earlier, an inter-governmental agreement for the provision of a $500 million Russian loan to finance engineering design, site development and personnel training was signed in January 2013.
On November 2, 2011, Bangladesh and Russia signed an agreement for the installation of nuclear power plant at Rooppur in Pabna.
Of the two-unit power plant with 1,200MW capacity each, the first unit is expected to begin operating by 2021 and the second unit by 2022. The Rooppur nuclear power plant will be constructed using two VVER-1200 nuclear reactors that have a 60-year lifespan.
Agricultural Minister Matia Chowdhury and Mashiur Rahman, economic advisor of Prime Minister Sheikha Hasina were also present during the signing ceremony.
