Rosatom issues clarification on Rooppur plant; says it never discloses project cost

The Russian Rosatom State Corporation issued a statement today (3 August) to address questions circulating on social media regarding the cost of the Rooppur Nuclear Power Plant compared to the Kudankulam Nuclear Power Plant in India. 

It said Rosatom and its partners never disclose the cost of NPP projects as those are a "commercial secret".

The Russian company also considered it incorrect to compare the cost of constructing units 1 and 2 at the Rooppur NPP with the cost of constructing units 3 and 4 at the Kudankulam NPP.

"Units 1 and 2 of the Kudankulam NPP were built and connected to the Indian national grid in 2013 and 2016. Units 3 and 4, the second stage of the plant, are being built on the site with a developed infrastructure. Back then, the Rooppur NPP was a greenfield project when the entire infrastructure was built from the ground up," the statement said.

"In Bangladesh, we are constructing two units under the EPC (Engineering, Procurement and Construction) contract that includes the construction and installation, as well as commissioning costs (about 50% of the project cost), while the Indian project is being carried out under the EP contract which means that construction and commissioning is the Customer's responsibility. The Indian side determines the construction and commissioning costs, which are not included in the price of the contract with Rosatom."

The statement added that the Indian's site conditions as well as weather conditions greatly differed from those of Bangladesh. 

"Besides, the countries have very different levels of necessary infrastructure availability, including qualified local labour, proximity to sand and gravel mining, and metal production."

Rosatom also highlighted the differences in soils.

"The first construction stage of the Kudankulam NPP included the entire site survey. At the stage of units 3 and 4 construction, the surveys were carried out to get additional details only. Significantly, the Kudankulam NPP is located on rocks, while the Rooppur NPP is being built on the bank of a river. The survey of soils showed the need for their stabilisation, which is highly material- and labour-intensive work."

It said the Rooppur NPP was the first NPP in Bangladesh, and accordingly, its construction required additional studies, surveys (investment considerations, Environmental Impact Assessment) and preliminary technological works (for example, construction of a workers' camp, etc.), which were completed on the Indian site at the first construction stage.

"The logistic schemes, transport hubs (all necessary roads, storage areas and premises) were also arranged and built at the first stage of the NPP construction in India; while in Bangladesh, these works are still ongoing.

The blue-collar and engineers training was also included in the first stage of the NPP construction in India. In Bangladesh, these services are provided for in the current contract."

It further highlighted that the "localization of equipment production and design in the case of the Indian NPP is increasing from stage to stage. Russia has already signed contracts with large manufacturers of pumping equipment and pipeline fittings who have manufacturing facilities in India, which also reduces the cost of the project due to eliminated long distance transportation costs, as well as further transfer of equipment supplies from the Russian to the Indian scope."

It concluded by saying the cost of equipment for both NPPs was the same, "thus it is the construction and installation costs that account for different prices of the contracts."

Petition seeks ACC inquiry into Hasina, family in Rooppur Power Plant 'scam'

Allegations of embezzling hundreds of crores of taka from the Rooppur plant project have surfaced against former prime minister Sheikh Hasina and her family members following the premier's ouster earlier last month.

According to a report published by Global Defense Corp on 17 August, Bangladesh's ousted prime minister Sheikh Hasina, her son Sajeeb Wazed Joy and niece Tulip Siddiq allegedly embezzled more than Tk500 crore from the Rooppur nuclear power plant.

Several local media outlets also published reports on the alleged embezzlement by the former prime minister on 19 August. 

Nationalist Democratic Movement (NDM) Chairman Bobby Hajjaj today filed a writ petition with the High Court, requesting an order directing the Anti-Corruption Commission (ACC) to investigate allegations.