Bangladesh has begun fuel loading at the Rooppur Nuclear Power Plant, marking its entry into the group of nuclear energy-producing nations as the world’s 33rd user. While the plant is expected to supply electricity to the national grid at full capacity within the next 10 months, a key supporting transmission project is undergoing revision amid mixed financial outcomes.
The Power Grid Bangladesh PLC (PGCB)-implemented power evacuation and transmission project, essential for carrying electricity from Rooppur to the national grid, has seen its overall cost reduced by more than Tk 2,300 crore. However, a significant rise in interest payments on foreign loans has partially offset these savings.
Officials said the revised project proposal is awaiting approval from the Executive Committee of the National Economic Council (Ecnec). The project is now nearly 98.8% complete in physical terms.
According to official sources, the revised development plan has reduced the total project cost to Tk 8,651 crore from Tk 10,981 crore, reflecting a net decrease of Tk 2,329 crore. However, this gain is partially offset by a rise of Tk 826 crore in interest payments on foreign loans, largely driven by the depreciation of the Bangladeshi taka against the US dollar.
“Although overall costs have decreased, interest payments have gone up due to exchange rate fluctuations. The revision is primarily aimed at adjusting these financial components,” said Md Masudul Islam, project director and chief engineer (in-charge) at PGCB.
Officials noted that the exchange rate changes over the project period significantly affected financing costs. At the time of approval, the dollar exchange rate was Tk 80.83, while between 2018 and 2025, payments were made at an average rate of Tk 97.65. The revised estimate now assumes Tk 122.30 per dollar for future expenditures, substantially increasing the cost of servicing foreign loans, particularly those from India’s Exim Bank.
Overall cost increases amount to Tk 2,733 crore, including Tk 1,845 crore for electrical equipment, Tk 826 crore in loan interest, and Tk 61 crore in loan management expenses.
However, substantial savings were achieved in other areas, including Tk 1,975 crore from consultancy services, Tk 1,385 crore from CD-VAT adjustments, Tk 213 crore from taxes, and Tk 336 crore from price and physical contingencies—bringing total reductions to Tk 5,063 crore.
The project scope has also been revised. A 20-kilometre river-crossing transmission line package under the Indian Line of Credit was dropped due to high bid prices and is now being implemented with domestic funding. Expansion works at the Dhamrai substation was also excluded from certain financing packages due to land acquisition and procedural delays.
In addition, several transmission lines were redesigned from double-circuit to single-circuit configurations, with voltage levels adjusted in line with nuclear plant requirements.
Initially scheduled for completion in December 2022, the project timeline has been extended multiple times—first to 2023, then 2024, 2025, and now June 2026—bringing the total implementation period to over eight years.
Despite delays, officials maintain that the system is ready for operation. “We are prepared to transmit Rooppur’s electricity to the national grid at any time,” Md Masudul Islam added.
Experts say while the reduction in overall cost is positive, rising foreign loan interest highlights broader financial risks. Professor Md Iqbal Hossain of BUET’s Department of Chemical Engineering noted that reliance on foreign currency borrowing exposes large infrastructure projects to exchange rate volatility, which may affect long-term financial stability and electricity pricing.
The transmission network spans 13 districts, including Dhaka, Gazipur, Tangail, Pabna, Bogra and Gopalganj, and involves high-voltage transmission lines and substation upgrades aimed at ensuring reliable evacuation of power from Bangladesh’s first nuclear power plant.
As Bangladesh moves closer to full operation of Rooppur, timely completion of the transmission infrastructure remains critical. While cost savings offer some relief, rising debt servicing costs underline the financial challenges associated with large-scale, foreign-funded energy projects.