The government yesterday finalised the $12.65bn Rooppur Nuclear Power Plant – the biggest ever investment project in the country – by inking an MoU with Russia for the construction and commissioning of the plant.
Out of the total amount, $10bn was fixed as the base price, $1bn for soil stabilisation and additional cost and the remaining $1.65bn for price escalation.
The additional cost is associated with the construction of four to five radiation stations outside the power plant area, hiring extra manpower for the construction of jetty and road, and fuel cost for one additional year. Russia will provide these for two years after commissioning.
The rate of price escalation would be 2.5% until the construction of the plant is finished.
Sergey Kirienko, chief of Russia’s state-owned atomic energy commission Rosatom, came to Dhaka yesterday on a short trip during which the deal was signed between Bangladesh Atomic Energy Commission and Atomostroyexport, a contractor appointed by Rosatom.
Science and Technology Minister Yeafesh Osman was present during the signing of the Memorandum of Understanding (MoU).
Sources said Bangladesh Atomic Energy Commission wanted to limit the cost to $11.5bn for the first nuclear power project in the country that would generate 2,400MW of power by 2021.
But the Russian contractor demanded $13.5bn for the job. Eventually, the deal was struck at $12.65bn.
Russia would provide 90% of the credit at 1.75% interest plus London Interbank Offered Rate, said Science and Technology Minister Yeafesh Osman.
Bangladesh will have to pay back the credit in 28 years with a 10-year grace period.
The two sides are expected to sign the general agreement in April. Besides, Bangladesh and Russia will sign four more agreements. They will be for: nuclear fuel purchase; transporting spent fuel from Bangladesh to Russia; maintenance and service of power plant; and manpower development.
These agreements will involve a cost of $8bn beyond the general contract cost of $12.65bn.
Yeafes Osman told the Dhaka Tribune yesterday: “As a nation, Bangladesh is very proud today ... There is a growing confidence among us.”
He also said that the MoU would now go to Executive Committee of the National Economic Council and the Cabinet Committee on Purchase. The Law Ministry will also have to vet the clauses of the MoU.
The Minister also said that the price per unit of electricity generated at the plant would be around Tk4.5.
Jahid Hasan Mahmud, professor of Applied Physics at Dhaka University, said that the price quoted in the MoU was reasonable. “If we compare this with the other countries, then I think the pricing is right.”
Yesterday, Prime Minister Sheikh Hasina underscored the need for timely completion of the power plant for materialising the government’s vision, when Rosatom chief Kirienko paid her a call at her official residence Gonobhobon.
