Rooppur Nuclear Project Cost to Rise by Tk 260 Billion

The prolonged delay in the Rooppur Nuclear Power Plant project has created fresh concerns regarding cost escalation, loan pressure and electricity security. Although the first unit was scheduled to begin power generation in December this year, it will not be possible. The timeline for the second unit is also likely to be pushed back.

A proposal has been made to increase the project cost by an additional Tk 261.81 billion, bringing the total expenditure to Tk 1.39274 trillion, which is about 23 per cent higher than the original approval. The project duration has also been proposed to be extended until June 2028.

In early November, the Ministry of Science and Technology proposed the first revised project with an 11.84 per cent rise in cost. However, during the PEC meeting on 11 November, it was stated that the foreign exchange rate had not been accurately reflected. Following reassessment, a new cost proposal was submitted to the Planning Commission on 27 November.

The project originally approved in 2016 had an estimated cost of Tk 1.13092 trillion. Although Russia’s loan of USD 11.38 billion remains unchanged in dollars, its value in taka has now risen to Tk 1.16799 trillion. Revised DPA calculations set the dollar rate at Tk 95.28 until June 2025, and Tk 122 for the next three years.

The project follows the Bangladesh–Russia intergovernmental agreement and includes construction of two 1,200 MW units, equipment supply, training and fuel provision. According to the first revised schedule, the first unit was expected to begin commercial operation in 2026, which now seems unlikely, causing delays for the second unit as well.

The Planning Commission has stated that inaccurate cost estimates may lead to errors in production cost calculations, financial analysis and revenue assessments. The PEC meeting discussed economic codes, maintenance costs and civil works in detail.

Russia is financing 90 per cent of the project cost. Loan disbursement was delayed due to Covid-19 and the Russia–Ukraine war. Bangladesh is expected to receive the remaining USD 3.68 billion by December 2026. Loan repayment will begin in March 2029, in two instalments over 20 years. Any delay beyond 30 days will incur 150 per cent annual interest.

Production from Unit-1 will not start this December as scheduled. The IMED report mentions that neither unit has a confirmed new production timeline. Coordination with Atomstroyexport has been advised to accelerate progress.

Professor Md Shafiqul Islam of Dhaka University’s Nuclear Engineering Department told the media that depreciation of the taka and other factors have increased unit-wise production costs by around 50 per cent. With the project already delayed by about three years, loan instalments are rising, equipment lifespan is reducing and workforce expenses are climbing. He said the overall economic and safety risks of the project are increasing.

Khaborwala/TSN