Bangladesh signs MOU with Russia for nuclear power

DHAKA, May 13 - Bangladesh signed a deal with Russia on Wednesday to develop a plan for a nuclear power plant to produce up to 1,000 megawatts to ease its energy shortage, a senior energy official said on Wednesday.

The project, which may cost between $1.5 billion and $2.0 billion, aims to produce power by 2014, said Tawfiq-e-Elahi Chowdhury, adviser to the prime minister on power, energy and mineral resources..

A delegation from the Bangladesh Atomic Energy Commission will visit Russia next month to develop technical expertise, he said.

"With the signing of the memorandum of understanding we have diversified the sources for producing electricity," Tawfiq told reporters after signing the deal.

Bangladesh laws allow the peaceful use of nuclear energy, he said.

Growing concern over a shortage of power led Bangladesh to consider nuclear as natural gas reserves were fast depleting.

The gap between demand and supply of natural gas will be wider after 2011 unless new gas fields are discovered and explored, energy officials said.

Bangladesh has 13.54 trillion cubic feet of proven and recoverable gas reserves but faces up to 250 million cubic of gas shortages a day, they said.

Bangladesh's electricity shortfall can reach 2,000 MW due to power plants which are up to 60 years old.

"It is a very important and historic moment for us with the entering of a deal and we can ensure Bangladesh will supply the best technology in setting up the nuclear plant," said N.N. Spasskiy, director general of Russian State Energy Corporation (Rosatom).