It also gave bank guarantee to the Russian joint-stock company Atomstroyexport for the fund.
Rooppur plant is the first-ever nuclear power plant project in Bangladesh.
Atomstroyexport is a key foreign trade engineering company of the Russian state-owned corporation Rosatom for construction of the nuclear power facilities abroad.
Finance Division of Bangladesh’s Ministry of Finance released the fund from the block allocation kept for the Ministry of Science and Technology this fiscal year for construction of the project (main phase), according to a circular issued by the Ministry of Finance.
“It’s unusual to disburse such a huge amount of funds without approval of the development project. However, we have set tough conditions for the disbursement of the funds,” said a Finance Division official.
According to the summary of the conditions, the main phase of the plant needs to be approved from the Planning Commission within next one month and authorities concerned will be responsible once any irregularity with the fund is committed.
Bangladesh and Russia signed a financial deal of $11.38bn in Moscow recently to implement the country’s first-ever nuclear power plant.
Last year, the Rosatom hinted that the cost might go up to $10bn. A couple of years ago the government had estimated that the plant would cost between $2bn and $3bn.
Russia will provide all assistance for setting up the plant, including providing the fuel and taking back the used fuel.
Bangladesh is seeking 90% of the project financing from Russia. The loan will be repaid in 28 years with a 10-year grace period.