The first phase of the construction of Rooppur Nuclear Power Plant (RNPP) has been hit with delays because of the non-payment of fees by the Russian sub-contractor to local contractors doing preparatory work.
Local contractors have brought earth filling and civil works to a halt because Goldenberg, the Russian sub-contractor, has failed to pay them. The project site in Pakshi union, Pabna, sits on 105 hectares of land.
The government signed three deals, worth a total of $500m, with Russian nuclear equipment and service firm JSC Atomstroyexport to conduct the preparatory construction work for Bangladesh’s first nuclear power plant.
Atomstroyexport appointed Goldenberg as the sub-contractor for the preparatory work of the plant which is expected to have a capacity of 2000MW.
An RNPP official, asking not to be named, told the Dhaka Tribune that Goldenberg did not enter into any written contracts with the local firms working at the site.
Nevertheless, local contractors have completed more than 60% to 70% of the earth filing and civil works necessary during this stage in construction. Goldenberg has yet to pay them for their work.
“Goldenberg also has not paid its rental car bills. It has not even paid its interpreter, who has been working for several months,” he added.
“The situation has made the completion of the work by its November deadline uncertain,” he added.
Bangladesh Foundry and Engineering Works Limited, Toma Construction and Co Ltd, SF Engineering and Construction Limited and several other local firms are working on the earth filling and civil works for the RNPP site.
A director of the Bangladesh Atomic Energy Commission (BAEC), seeking anonymity, told the Dhaka Tribune that appointing the “sub-standard and inexperienced” Russian sub-contractor for the preparatory work of such a sensitive project would likely cause delays.
Construction and erection base work is an essential part of the physical infrastructure of a nuclear power plant.
“It is crucial to do this job very well at this stage of the first phase of work,” the BAEC director added.
“If the main construction work of the power plant is carried out by this sort of sub-standard contractor, the power plant will pose a risk to the country’s security,” he added.
Md Altaf, managing director of SF Engineering and Construction, told the Dhaka Tribune yesterday: “Goldenberg promised down payments to local contractors and assured them that subsequent payments would be made as each portion of work was completed. But they have not kept their word.”
“For this reason, local contractors have stopped working. We do not think the work will be finished on time,” he added.
Goldenberg owes local contractors several hundred crore Taka, he said.
Md Sabir Ahmed, a proprietor of Aalasa Trade International, said: “Goldenberg used my rental car services and owes me several lakh Taka. But now they are breaking their word.”
Vladislav Bochkov, vice-president of communications at Rosatom International Network, a Rosatom company, said in reply to an email sent by the Dhaka Tribune: “Goldenberg LLC has been selected by JSC Atomstroyexport under a transparent procurement procedure set forth in the procurement standards of Rosatom.
“It should also be noted that Atomstroyexport is performing the preparatory work in strict accordance with the schedule, the terms and conditions of existing contracts and the customer’s requirements.”
“The scope of work to be performed by Goldenberg includes building a construction and mounting base of the first phase. According to the work schedule, Goldenberg is to complete the first phase of the site work before September 30, 2015,” the email added.
Goldenberg’s representative in Bangladesh, Erick Baratov, was not available for comment. He did not reply to an email from the Dhaka Tribune.
RNPP Project Director Mohammad Shawkat Akbar yesterday told the Dhaka Tribune: “We have heard about the complaints. We have no dealings with sub-contractors.
“We will hold Atomstroyexport responsible for maintaining quality control and will not allow any excuses in this matter.”
Science and Technology Minister Yeafesh Osman told the Dhaka Tribune yesterday: “Both parties are liable as neither signed a contract. We will look into the matter. This type of problem is not to be expected in a major international construction project.”
Three deals, worth $500m, were signed between the government and Russian firm JSC Atomstroyexport. Russia had earlier signed an MOU on January 15, 2013 during a visit of Prime Minister Sheikh Hasina to the Russian Federation for $500m in state export credit for the project.
The earth filling and civil works fall under the third contract – worth $190m – of the first phase of construction, for preparatory work to be completed prior to the pouring of concrete at the Rooppur site.
Under the third contract, mainly three types of work will be carried out – the pioneer base, construction and erection base and industrial construction base.
The Bangladesh Atomic Energy Commission (BAEC), under the Science and Technology Ministry, will implement the Rooppur project.
The Russian State Atomic Energy Commission, Rosatom, will build, operate and provide fuel to the plant. It will also take the nuclear waste the plant produces back to Russia at regular intervals.
In April 2013, the Executive Committee of the National Economic Council approved the establishment of the first phase of the Rooppur Nuclear Power Plant Project.
The total project cost is Tk5,087 crore. The government will provide Tk1,087 crore while project assistance in the form of Russian state export credit is Tk 4,000 crore.
