Govt seeks US assistance in repaying Rooppur Nuclear Plant loan

The Bangladesh government is planning to seek US assistance in repaying advance and interest payments on the loan for the Rooppur Nuclear Power Plant, as international sanctions on Russia’s banking system—particularly its exclusion from the SWIFT payment network—have made direct transactions nearly impossible.

Financial Adviser Dr. Salehuddin Ahmed shared the information on Thursday following a meeting of the Cabinet Committee on Government Purchase at the Secretariat.

A high-level Bangladeshi delegation, led by Dr. Ahmed, is set to leave for the United States this weekend to attend the Spring Meetings of the World Bank and International Monetary Fund (IMF). Alongside multilateral discussions, the team will also engage in bilateral talks with US officials on several key issues, including increased tariffs and financial cooperation.

Focus on Budget Support and Rooppur Loan Issue

Responding to a media query, Dr. Ahmed said that securing budgetary and project-based support from development partners will be a key objective of the visit. Meetings are scheduled with officials from the World Bank, Asian Development Bank, IMF, and the OPEC Fund. He hinted at the possibility of signing two agreements with the World Bank and one with the OPEC Fund.

The adviser confirmed that the US Treasury Department will be approached regarding a possible mechanism to facilitate loan repayment for the Rooppur project. “Due to sanctions, we are unable to process payments to Russia. We will discuss whether anything special can be done,” he stated.

Background on Rooppur Project Financing

According to the Economic Relations Division (ERD), the Rooppur Nuclear Power Plant is being financed under a 2011 agreement between Bangladesh and Russia. Of the total $12.65 billion project cost, Bangladesh was to provide 10% ($1.265 billion) as an advance, while the remaining 90% ($11.38 billion) would come as a Russian loan.

While Bangladesh has managed to repay part of the advance, sanctions have obstructed the payment of the remaining advance, interest, and portions of feasibility-related loans. Although the principal repayment was initially scheduled to begin in March 2027, Russia has agreed to defer it by 18 months at Bangladesh’s request. However, Russia continues to press for regular interest payments as per the agreement.

Talks on US Tariffs and Investment

The delegation will also discuss the recent imposition of a 37% tariff on Bangladeshi goods by the US The issue will be raised with the United States Trade Representative (USTR). Commerce Secretary Mahbubur Rahman and Special Envoy for International Affairs Lutfe Siddique will accompany Dr. Ahmed.

The Bangladeshi side plans to explore possible incentives for US imports of LNG and capital machinery, and will push for resolving trade-related issues under the Trade and Investment Cooperation Forum Agreement (TICFA).

GSP and Export Diversification

On the subject of reinstating Generalized System of Preferences (GSP) facilities for Bangladesh, Dr. Ahmed acknowledged that an immediate return is unlikely due to concerns surrounding labor conditions. However, he emphasized that notable improvements have been made and will be highlighted during the visit.

The delegation also intends to engage with the US Business Council—comprising 70 of the world’s top companies—and the Atlantic Council to encourage private investment in Bangladesh.

After the delegation’s return, further steps will be taken to prepare for a follow-up visit by Commerce Adviser Sheikh Bashir Uddin, who is expected to hold direct talks with the USTR.