The repayment of loans and interest for the Rooppur Nuclear Power Plant, funded by Russia, has encountered significant complications.
The process has been repeatedly hampered by sanctions imposed on ten Russian banks, preventing the use of the Society for Worldwide Interbank Financial Telecommunications (SWIFT) system for international transactions.
In response, the Bangladesh Bank has been forced to deposit funds into an escrow account, a third-party account where money and assets are held until the terms of the agreement are fulfilled.
An official from the central bank, involved in the matter, stated that so far, $809 million has been deposited into the escrow account, amounting to more than three-quarters of $1 billion.
This amount will be paid in due course.
However, the challenge lies in determining which country's bank the funds should be sent to.
Russia has proposed using a Chinese bank for the transfer of funds.
Officials from the Economic Relations Division (ERD) of the central bank have confirmed that the feasibility of this proposal is being evaluated.
Efforts are underway to find a risk-free solution for the repayment process, with ongoing meetings involving the ERD, Bangladesh Bank, and other government stakeholders.
A source, speaking on the condition of anonymity, revealed that before the sanctions were imposed by the West on Russia, repayments for eight to nine instalments were made through the state-owned Sonali Bank.
However, for over a year, transactions have come to a standstill due to these sanctions.
The source further added that extending the loan repayment period would have made the process significantly easier.
According to the contract, principal loan repayments are set to begin on 15 March 2027.
Recently, however, Russia rejected a proposal by the interim government to extend this deadline to 15 March 2029.
It is noteworthy that the Russian contractor, Atomstroyexport, is constructing two units of 1,200 MW each for the project, with an estimated cost of $12.65 billion (equivalent to Tk1,32,825 crore, at the rate of Tk105 per dollar).
Russia is financing 90% of this cost.
Industry insiders have reported that 69% of the project has already been completed, with construction expected to conclude by 31 December next year.
