Home ›› 19 Feb 2023 ›› Front
The estimated cost of the Rooppur Nuclear Power Plant project was around Tk 1,13,092 crore ($13.2 billion), but it has now gone up to nearly Tk 1,66,214 crore ($15.68 billion) due to taka’s devaluation and auxiliary costs.
The auxiliary costs include money spent on various work, including constructing smart gridlines and railway lines, river dredging, and building smart telecommunication networks.
Taka’s devaluation against the US dollar has caused the project’s direct cost to increase to around Tk 1,40,000 crore from Tk 1,13,092 crore. The auxiliary costs account for the remaining increase, said officials of the science and technology ministry as well as the Bangladesh Atomic Energy Regulatory Authority (BAERA).
The ministry and the BAERA are jointly implementing the biggest mega project in Bangladesh’s history.
“The general contract signed with Russia for the main project was Tk 1,01,000 crore ($12.65 billion). It has been awarded to Atomstroyexport, a subsidiary of the Russian state-owned corporation Rosatom. But the project cost then rose by another Tk 12,000 crore ($1.4 billion) for some other work, including constructing housing for the power plant officials, staff salaries, and land development,” Project Director Shawkat Akbar told The Business Post.
He said the area where housing units would be built for the power plant officials is called Green City, adding the project’s fixed cost would not increase.
Experts said the government did not clarify the project cost at the beginning, which is why many believed the original cost was Tk 1,01,000 crore ($12.65 billion) as per the general contract.
They also said the then finance minister Abul Maal Abdul Muhith at the time remarked that the project has many hidden costs, which are now being revealed.
The project director said smart gridlines and telecommunication networks will have to be set up separately as nuclear power plants use advanced technology. “Such infrastructure will upgrade the country’s grid network and telecommunication system, though its expense is not part of the project’s direct cost.”
Md Shafiqul Islam, nuclear engineering professor at the University of Dhaka, told The Business Post a power plant has a lifespan of at least 100 years and various development work needs to be carried out around it.
“For example, air and rail communication systems have to be built. Considering the money the government has already spent on the Rooppur project, it will not be profitable if the facility is limited to only two units. More units should be built to make profits,” he added.
The BAERA said the first phase of the project involving survey, land development, design, and the construction of some physical infrastructures will cost about Tk 4,400 crore while Tk 3,500 crore has been given to the Public Works Department for constructing Green City.
The armed forces will ensure security at the plant and have constructed an offsite laboratory. There are also other costs, including manpower. All this increased the project cost to Tk 1,13,000 crore.
Of this amount, the Russian government is lending 90 per cent, and the remaining 10 per cent comes from the Bangladesh government. The Bangladesh government will also have to bear the auxiliary costs.
One of the major auxiliary costs is the Indian experts’ consultancy fees.
According to the agreement signed during Prime Minister Sheikh Hasina’s visit to India in 2017, the Global Centre for Nuclear Energy Partnership and the Atomic Energy Regulatory Board are providing support for the project at a cost of around Tk 10,000 crore ($940 million).
The science and technology ministry says the Ministry of Railways has constructed a special rail line from Paksey to Rooppur to transport heavy machinery and other goods for the project. Built at a cost of Tk 336 crore, it was recently inaugurated by Prime Minister Sheikh Hasina.
Besides, Bangladesh Inland Water Transport Authority has been developing a river route from Chattogram and Mongla ports to Paksey through Chandpur since 2017 for transporting heavy goods for the project. This is scheduled to be finished in 2025 and will cost Tk 5,300 crore ($500 million).
The smart gridline construction is underway in four parts to transmit electricity from Rooppur to the rest of the country. The cost is more than Tk 10,200 crore. Of this, Tk 8,000 crore will come as a loan from the Indian government.
The government recently approved the installation of modern and high-speed external telecommunication networks for the nuclear power plant. The estimated cost is Tk 378.84 crore, and Bangladesh Telecommunications Company Limited is implementing it under the guidance of the science and technology ministry.
The project director said there is no chance that the main project cost will increase despite taka’s devaluation because Bangladesh will pay $12.65 billion in foreign currency to Rosatom.
“However, due to the recent US sanctions, Russia is seeking debt repayment in ruble. The Planning Commission and the BAERA are concerned over the possibility of the cost going up.”
