Russia and Bangladesh are set to sign a $3 bn deal later this year to build two nuclear power plants in Bangladesh. Russian companies wiill build the 1000 MW power plants in the northern town of Rooppur. The two plants are expected to be ready for operation by 2017, enabling the country to cope with increasing demand for electricity in response to its economic growth, which has been at around six percent a year since 2004. According to the International Monetary Fund the country's economic growth is expected to suffer this year, largely due to the worsening energy crisis. Expert opinion is that Bangladesh's gas reserves are also fast depleting, forcing the country to look for alternative sources of energy.
Bangladesh received approval from the International Atomic Energy Agency to set up a nuclear power plant in 2007. The deal with Russia has been drafted and will be signed when Bangladesh's prime minister Sheikh Hasina visits Russia later this year.