RNPP power transmission project cost likely to go down by Tk 23.3b

The cost of the project to build transmission infrastructure for supplying electricity from the Rooppur Nuclear Power Plant (RNPP) has been reduced by Tk 23.30 billion under a revised proposal after some expensive components were removed from the original design, officials said.

The project, titled "Development of Transmission Infrastructure for Power Evacuation of Rooppur Nuclear Power Plant", will now cost Tk 86.52 billion, down from the original estimate of Tk 109.82 billion.

At the same time, the implementation deadline for the project has been extended until June 2026.

The Planning Commission has recommended approval of the first revised proposal at a meeting chaired by Dr Nurun Nahar Chowdhury, member (secretary) of the Industry and Energy Division of the Planning Commission.

According to officials, the revised cost represents a 21.22 per cent reduction from the original estimate, resulting in significant savings for the government.

The project is being implemented by Power Grid Bangladesh PLC.

Under the revised financing plan, Tk 60 billion will come from the Indian line of credit (LOC), Tk 14.57 billion from the government of Bangladesh and Tk 11.71 billion from PGCB's own funds.

Officials said the sharp reduction in project cost was mainly achieved by dropping several costly components from the original project design.

One of the major changes was the exclusion of a planned 20-kilometre river-crossing transmission line over the Padma and Jamuna rivers after its estimated cost became exceptionally high during the bidding process.

The component will now be implemented separately under a domestic project.

In addition, delays in land acquisition and GIS substation construction led to the removal of the 230kV Dhamrai substation expansion from the Indian LOC funding package.

Despite the reduction in overall project cost, officials said the revised budget had to absorb higher foreign exchange costs during implementation.

The original project proposal in 2018 was prepared based on an exchange rate of Tk 80.83 per US dollar, while the revised budget considered an average exchange rate of Tk 103.79 per dollar.

Officials noted that although the project cost in dollar terms declined due to the removal of several components, the depreciation of the local currency offset part of the savings.

The extension of the project deadline will allow Power Grid Bangladesh PLC to complete the remaining high-voltage transmission lines, including the 150km Rooppur-Dhaka line and the 155km Rooppur-Gopalganj line, ensuring smooth transmission of nuclear power to the national grid.

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