CONSULTING

Over the past year, the design selected for construction has also changed. Earlier, the plan was to
construct two VVER-1000 units but in 2015, the Bangladesh government reportedly became
interested in the VVER-1200 design during “a high-level meeting in Vietnam”. 67 In December
2015, an agreement was said to be signed between the Bangladesh Atomic Energy Commission
and Rosatom for 2.4 GW of capacity, with work expected to begin in 2016 and operation to start
in 2022 and 2023. 68 According to the deal, Russia would provide 90 percent of the funds on credit
at an interest rate of Libor plus 1.75 percent. Bangladesh will have to pay back the loan in 28 years
with a 10-year grace period. As in other countries, Russia has offered to take back the spent fuel.
However, four months later, the project was delayed again, this time with a scheduled
construction start on 1 August 2017. By April 2016, site preparation was reportedly 80 percent
complete. 69 However, in late June 2016, a “siting licence ceremony” was held in Dhaka allowing
for “preliminary site works”. 70 The obvious contradiction between the two pieces of information
could not be cleared up.
In late May 2016, negotiations were concluded over the US$12.65 billion project, with Russia
making available US$11.385 billion, with a final agreement expected to be signed “within two
months”. 71 By the end of June 2016, Bangladesh's cabinet had approved a draft of the agreement
and a signature was expected in “July or August”. 72
The deal has been criticized by many in the media. One concern has been that the project will
result in a major debt burden. In October 2015, Bangladesh’s Finance Minister Abul Muhith, was
quoted as saying that the “country’s debt burden is now US$18 billion, which will go up to US$30
billion after five years at the current pace of external borrowing. The amount would reach US$42
billion if the Russian loan is added to it”. 73
Lithuania had two large RBMK (Chernobyl-type) reactors at Ignalina, which were shut down
in 2004 and 2009, a requirement for joining the European Union. Since then there have been
ongoing attempts to build a replacement, either unilaterally or with neighboring countries. The
most recent proposal was confirmed in 2012 when the Government, along with its partners in
Estonia and Latvia, chose Hitachi together with its Hitachi-GE Nuclear Energy Ltd. unit as a
67 Energy Bangla, “Rooppur Will Be A Modern, Safe and Money Saving Nuclear Plant”, Interview with
Maksim V. Elchishchev, NIAEP Vice President, 15 October 2015, see http://energybangla.com/rooppur-willbe-a-modern-safe-and-money-saving-nuclear-power-plant/,
accessed 1 July 2016.
68 WNN, “Bangladesh, Russia ink $12.65 billion Rooppur plant deal”, 29 December 2015, see
http://www.world-nuclear-news.org/NN-Bangladesh-Russia-ink-12.65-billion-Rooppur-plant-deal-
29121501.html, accessed 31 March 2016.
69 NW, “Bangladesh will begin construction of first nuclear unit in August 2017: official”, Nucleonics Week,
14 April 2016.
70 WNN, “Bangladesh moves forward with Rooppur”, 28 June 2016, see http://www.world-nuclearnews.org/NN-Bangladesh-moves-forward-with-Rooppur-2806167.html,
accessed 1 July 2016.
71 NEI, “Russia initials credit agreement with Bangladesh for Rooppur NPP”, 30 May 2016, see
http://www.neimagazine.com/news/newsrussia-initials-credit-agreement-with-bangladesh-for-rooppur-npp-4907672/,
accessed 1 July 2016.
72 WNN, “Bangladesh moves forward with Rooppur”, op.cit.
73 Click Ittefaq, “$13.5 billion estimated for Rooppur Nuclear Power Plant”, Updated 28 October 2015, see
http://www.clickittefaq.com/13-5-billion-estimated-for-rooppur-neuclear-power-plant/, accessed 1 July 2016.
Mycle Schneider, Antony Froggatt et al. 44 World Nuclear Industry Status Report 2016