Rooppur project delayed: Yunus government’s indecision increases cost by Tk 13,386 crore

Staff Correspondent

The cost of the Rooppur Nuclear Power Plant project has increased by another Tk 13,386 crore due to administrative indecision and slow pace of project implementation during the Yunus government. Although this increase is shown only on the pretext of exchange rate adjustment, project officials say that the main reason is the delay in the approval process and stagnation in the activities of the current government.

According to the first revised proposal of the project, the total cost stands at Tk 1,26,479 crore, which is about 12 percent more than the original approval in 2016. Although the loan of $11.38 billion as per the agreement with Russia remains unchanged, the amount of this loan in Bangladeshi currency has increased to Tk 1,44,040 crore due to the depreciation of the taka.

In other words, multiple sources in the Planning Commission are indicating that not only the depreciation of the taka against the dollar, but also the slowdown in project supervision and delays in decision-making are major reasons for the increase in costs.

The revised proposal for the project was recently sent to the Planning Commission by the Ministry of Science and Technology. Officials in charge of the commission said that a review meeting will be held on November 11 to approve the proposal—which has already been postponed multiple times.

The project period has also been extended to June 2028. However, according to the original plan, the plant was supposed to be fully operational in December 2025. According to the revised schedule, the first unit will now go into commercial production in 2026—two years behind schedule.

Although the coronavirus pandemic, the Russia-Ukraine war, and the dollar crisis have been cited as reasons for the delay in project implementation, a section of those involved in the project believe that bureaucratic processes and policy uncertainty during the interim government are playing a major role.

“The pace and enthusiasm with which the previous government took the project forward is no longer visible now. The file remains pending for months for a decision,” said an official, speaking on condition of anonymity.

The Rooppur project was one of the largest and most technically complex infrastructure projects undertaken by the Awami League government. It raised hopes of starting a new chapter in the country’s energy sector. However, those hopes have now been dashed as both the project’s time and cost have increased abnormally during the interim government.

As part of the project revision, additional allocations have been made for security infrastructure, environmental monitoring, and cybersecurity. While these sectors have their merits, project officials say many of the allocations are additional costs created by time delays.

For example, the allocation for the CD-VAT sector of the project has been increased from 178 crore to 378 crore taka. The allocation for the vehicle sector has increased from 67 crore to 100 crore taka. New expenses have also been included in the office expansion, equipment purchase and overtime sectors.

Russian company Atomstroyexport is managing the construction work. As of August this year, the physical progress of the project has reached 74.24 percent. Although the plan is to test load fuel into the first unit by December, there is uncertainty about whether it will be possible on time.

The interim government says that revising the project and determining new costs is necessary to ensure international standards and safety.

But analysts say the economic rationale for the country’s most expensive power project will be weakened if effective policy steps are not taken now to control the project’s capital costs and start production on time.