Rooppur nears debut amid price, debt questions persist

Bangladesh prepares to enter the nuclear power era as the first unit of the Rooppur Nuclear Power Plant nears commissioning, but several financial, regulatory and operational issues remain unresolved despite the project’s advanced stage.

If the current schedule holds, the first unit at Ishwardi in Pabna will begin supplying around 300 megawatts (MW) to the national grid by the end of August, before reaching its full commercial capacity of 1,200MW in December. Fuel loading for the unit began on 28 April.

Once operational, Bangladesh will become the world’s 33rd country to generate electricity from nuclear power.

The Rooppur project, however, has experienced repeated delays since construction began. Under the original 2016 agreement, the two reactors were scheduled to enter commercial operation in 2023 and 2024.

The completion deadline has since been extended to June 2028, while currency depreciation has added around Tk26,000 crore to the project’s cost, increasing the estimated total investment to Tk1.39 trillion (US$12.65 billion), according to the Ministry of Science and Technology.

Power tariff yet to be determined
One of the key outstanding issues is the absence of a Power Purchase Agreement (PPA) between the Nuclear Power Plant Company Bangladesh Ltd (NPCBL) and the Bangladesh Power Development Board (BPDB), which will determine the tariff for electricity generated by the plant.

BPDB officials said they have repeatedly sought detailed construction and operating cost data from the project authorities to calculate the tariff but have yet to receive the necessary information.

Earlier estimates suggested electricity could cost Tk4-4.5 per unit, but subsequent projections increased to Tk7-8 per unit. The estimated generation cost alone now stands at Tk4.31 per unit, excluding financing costs, foreign personnel, waste management and other operational expenses.

Professor Shamsul Alam, energy adviser to the Consumers Association of Bangladesh, estimates the final tariff could reach Tk11-12 per unit after all costs are incorporated.

Waste management framework still evolving
Nuclear experts also point to outstanding arrangements concerning long-term spent fuel management.
An intergovernmental agreement signed with Russia in 2017 provides for the return of spent nuclear fuel. However, the commercial arrangements, including costs, timelines and implementation procedures, remain under discussion, according to officials.

Spent fuel is not expected to require removal from on-site cooling facilities until around 2035, providing time for the remaining agreements to be finalised.

Dr Md Shafiqul Islam, Professor of Nuclear Engineering at the University of Dhaka, said completing such arrangements before commercial operation would strengthen long-term planning.

He also noted that a dedicated company proposed to oversee long-term waste management and maintenance has yet to be formally established.

NPCBL Managing Director Dr Zahedul Hassan said the remaining agreements are being completed in phases and stressed that commercial operation cannot begin without the necessary approvals from the International Atomic Energy Agency (IAEA).

Financing challenges remain
Rooppur is Bangladesh’s largest externally financed infrastructure project. Of its US$12.65 billion cost, about US$11.38 billion is being financed through a Russian state loan, repayable over approximately 20 years.

International sanctions affecting Russian banks following the 2022 Ukraine conflict have complicated repayment arrangements. In 2023, Bangladesh settled part of its obligations, reportedly US$318 million, in Chinese yuan after conventional SWIFT transactions became difficult.

Officials said some payments remain in a designated account at Sonali Bank while alternative settlement mechanisms continue to be explored.

Modern reactor technology
The Rooppur plant is equipped with two VVER-1200 reactors supplied by Russia’s Rosatom, rather than the older VVER-1000 design.

The Generation III+ reactors incorporate enhanced passive safety systems, including a core catcher and safety features introduced following the Fukushima accident.

While experts continue to debate various aspects of the project’s long-term economics and implementation, they agree that the key issues now centre on three areas: the final electricity tariff, the long-term cost and arrangements for nuclear waste management, and the financial implications of servicing the project’s substantial external debt.

As Bangladesh prepares to commission its first nuclear power plant, these issues are expected to remain central to discussions over the project’s long-term sustainability and contribution to the country’s energy security.