NPCBL clarifies RNPP financing, EPCC contract
In response to recent discussions and confusion regarding the EPCC contract and financing mechanism of the Rooppur Nuclear Power Plant (RNPP), the Managing Director of Nuclear Power Plant Company Bangladesh Limited (NPCBL), Dr. Md. Zahedul Hasan, has provided a detailed explanation, stating that the project’s contractual, technical and financial framework cannot be understood through isolated information.
In a written statement issued on Thursday, Dr. Hasan said Bangladesh’s first nuclear power plant is now in the final stage of preparation for operation. Implemented under an Intergovernmental Agreement (IGA) between Bangladesh and the Russian Federation, the project includes an Engineering, Procurement, Construction and Commissioning (EPCC) contract between the Bangladesh Atomic Energy Commission (BAEC) and JSC Atomstroyexport, while financing is governed separately by an Intergovernmental Credit Agreement (IGCA).
He emphasized that the EPCC contract is not a procurement agreement for specific equipment. Instead, it covers the complete design, construction, testing, commissioning and delivery of an operational nuclear power plant.
The contract follows a Whole Plant Contract Price, meaning there are no separate prices for equipment, buildings, construction, and erection or commissioning. Payments are made only after predefined milestones are successfully completed.
Explaining the fund disbursement process, he said that the Bangladesh Atomic Energy Commission (BAEC) does not have the authority to release payments to the contractor immediately after a milestone is achieved.
First, the milestone-related work must be verified in accordance with the contract, and an Acceptance Document must be signed. Only then is the milestone considered eligible for financing under the loan agreement.
Subsequently, the Ministry of Finance of the Russian Federation disburses the loan funds following the procedures stipulated in the IGCA. Therefore, payment is not made automatically upon completion of a milestone, nor can BAEC independently release funds.
He noted that Bangladesh is financing 10 percent of the project cost, while the remaining 90 percent is being provided through a Russian state loan. The EPCC agreement governs project implementation, whereas the IGCA regulates loan disbursement and financial management.
According to Dr. Hasan, the Rooppur plant uses VVER-1200 Generation III+ technology, an integrated proprietary nuclear technology requiring internationally recognized EPCC implementation, technology transfer and operator training.
He also said that while competitive procurement is the general rule, Bangladesh’s procurement laws allow single-source procurement for projects involving proprietary technology, intellectual property, security considerations and intergovernmental agreements.
He concluded that the Rooppur Nuclear Power Plant is a strategic investment for Bangladesh’s long-term energy security, technological advancement and sustainable development.
Therefore, discussions on the project should be based on internationally accepted nuclear project practices, contractual realities and financing mechanisms to ensure informed public understanding.
