Rise in dollar rate pushes up Rooppur power plant cost by Tk 261.81b
The cost of the Rooppur Nuclear Power Plant (RNPP) project is set to rise by nearly Tk 262 billion. The increase stems from rising prices of materials and equipment. With the revision, the total project cost will rise to Tk 139,741 crore (nearly Tk 1.4 trillion).
A proposal to this effect has been submitted to the planning ministry. A meeting on the revised proposal was held at the ministry on 11 November, with another meeting scheduled for next week.
Additional expenditure has also been proposed to rationalise the costs of various infrastructure components of the project. The Bangladesh Atomic Energy Commission (BAEC) is implementing the project at Rooppur in Pabna.
Why the costs are rising
According to the documents presented at the planning ministry meeting, fluctuations in foreign exchange rates at different stages of the project were not accurately reflected in the original cost estimates. As a result, the total project cost in Bangladeshi taka was not correctly calculated.
It further said that without an accurate calculation of total expenditure, it is impossible to precisely determine the unit cost of electricity generation or to conduct a proper cost–benefit analysis. For these reasons, the report argues in favour of incorporating the increased costs into the project estimate.
Project documents show that Russia’s Exim Bank is providing a loan of US $11.38 billion for the construction of the Rooppur Nuclear Power Plant.
When the Development Project Proposal (DPP) was prepared, the exchange rate was assumed to be Tk 80 for each dollar. So far, $8.29 billion has been utilised, calculated at an average exchange rate of Tk 95.28 per dollar.
A further US $3.09 billion from the Russian loan remains unutilised. For this remaining portion, an exchange rate of Tk 122.4 per dollar has been applied.
Considering these factors, planning ministry officials say that a recommendation to increase the project cost is being finalised.
What the total costs now look like
The Rooppur Nuclear Power Plant project was launched in 2016, with an initial estimated cost of Tk 113,092 crore (just over 1.13 trillion). Of this, Russia’s Exim Bank provides as loan Tk 91,000 crore (910 billion), or $11.38 billion.
The revised cost has now been set at Tk 139,741 crore, representing an increase of Tk 26,181 crore, around 23 per cent.
Although the project was originally scheduled to be completed this month, its tenure has now been extended to June 2028.