91% budget hike for RNPP telecom project, less than 1% completion
The "Establishment of External Telecommunication Network for Rooppur Nuclear Power Plant," approved in 2022 with a budget of Tk 378.84 crore, has seen minimal progress, with less than 1% of the work completed in two years.
The implementing agency of the supporting project of the country’s first nuclear power plant, Bangladesh Telecommunications Company Limited (BTCL), now seeks an additional allocation of Tk 345 crore, citing inflation, rising fiber optics costs, and complications due to geopolitical factors.
Although the Planning Commission raised questions over the 91% increase, it is set to approve the proposal after multiple rounds of discussion.
Project delays have been attributed to reliance on a Russian consultancy firm, as payments to Russian institutions were impacted by the Ukraine conflict.
Following scrutiny and multiple meetings, the Planning Commission is expected to approve this increased expenditure, with the proposal currently awaiting final sign-off from the Planning Advisor. Rehana Parveen, a member of the Socio-Economic Infrastructure Department of the Planning Commission, said, “The expenditure is being approved after project evaluation. Although it's lower than the initial claim, it’s essential to support the main RNPP project.”
91% cost hike proposal and project delays
The initial project, with a budget of Tk 378.84 crore, was scheduled from April 2022 to March 2024. However, due to complications, the project's physical and financial progress remains at a mere 0.01%. As of the 2024-25 Annual Development Programme (ADP), Tk 184 crore has been allocated to the project. Despite minimal implementation, the cost is now proposed to increase by Tk 345 crore, raising the total to Tk 724 crore and extending the timeline to June 2026.
Setbacks due to geopolitical issues
The original plan called for the engagement of a Russian consulting firm for procurement and network design. However, the Ukraine conflict complicated payments to Russian entities, halting progress. Although BTCL initially rushed the project’s approval, no agreement has been reached with the Russian consultant, and the dollar’s exchange rate has since risen from Tk 84 to Tk 120, further inflating costs.
Comments from the project director
Project Director Shafiqur Rahman explained the delays, citing reliance on the Russian consultancy firm and payment restrictions due to the conflict.
"The delay stemmed from an inability to finalise the consultancy agreement, despite completing procurement procedures,” Shafiqur said.
Regarding the increased budget, he said, "Many components of the project are no longer in the rate schedule, and costs such as fiber optics rent have risen, among other factors."
The Rooppur Nuclear Power Plant is set to include two power units, each equipped with advanced Russian VVER-1200 reactors, and a combined production capacity of 2,400 MW, meeting stringent international safety standards. The project is being executed by Rosatom’s engineering division as the General Designer and Contractor.
The construction of supporting infrastructure of the Rooppur Nuclear Power Plant will cost at least 24,500 crores. This estimate does not include the construction cost of the Rooppur Nuclear Power Plant project.
The Rooppur Nuclear Power Plant is the most expensive project in Bangladesh's history, though its construction costs have raised several questions. The plant is being built by Russian government agency Rosatom, with reported construction costs for the main plant reaching $13.2 billion—equivalent to approximately Tk 155,000 crore.
