Bangladesh to build nuclear plant with Russian help

Roopur Nuclear Power Plant is a $2 billion Bangladesh-Russia project to boost electricity generation by 2014, easing energy shortages amid declining gas reserves, PPP investments, LNG imports, and cross-border power transmission links.

In a bid to bridge the power supply-demand deficit, Bangladesh has announced plans to build a 1,000 MW nuclear power plant with technology assistance from Russia.

The cabinet, headed by Prime Minister Sheikh Hasina, has approved the deal.

The total investment on the nuclear power plant, which will be at Roopur in western Bangladesh, is estimated to be about $2 billion. The nuclear plant is likely to begin generating electricity in 2014.

The initial agreement was signed between the two countries last year. Sources indicate that a Russian delegation will visit Bangladesh to hold further discussions. The final agreement is expected to be signed during Sheikh Hasinas proposed state visit to Russia later this year. However, details of the visit have not been disclosed.

Steadily declining gas reserves and undeveloped coal mines have forced Bangladesh to explore electricitygenerating opportunities in the nuclear power sector. The country's coal reserves are estimated to be about 3.3 billion tons, of which recoverable resources are about 884 million tons.

Bangladesh has a population of nearly 150 million. The daily electricity shortfall for a peak demand of 5,500 MW is nearly 2,000 MW. Households face power cuts for several hours a day. Industry analysts have observed that derelict coal-fired plants and gas-fired power plants and obsolete technology have steeply reduced fuel efficiency and power-generating capability.

Recently, some of the country's fertilizer plants were shut down to divert gas for power generation. Acute power outages, amid power protests across Bangladesh, have adversely affected Bangladesh's industrial development and economy. According to TawfikeElahi, Energy Advisor to Sheikh Hasina, Bangladeshs economic growth could have been at least 1 to 2 higher if not for the energy crisis.

Recently, declaring power as the lifeline for economic development, Sheikh Hasina expressed confidence in a sustained electricity supply by 2020. The announcement was made during the inauguration ceremony of the 51MW Fenchuganj rental power project in Sylhet division. It also was indicated that steps have been taken to increase the national power-generating capacity to 7,000 MW by 2013, including an India-backed 240 MW plant among other projects.

To achieve this target, contracts have been awarded to companies to build 1,000MW power plants in different locations in Bangladesh. Last month, the cabinet also approved construction of an 830MW power project. To ensure steady and sustained fuel supply for existing power plants, the government is exploring the possibility of importing liquefied natural gas LNG from Qatar.

Discussions are under way to sign electricity import agreements with Bhutan, India, Myanmar and Nepal, while a Bangladesh-India power deal underscores growing cooperation.

As part of the IndiaBangladesh Power Exchange Program, a transmission line is under construction connecting Bhermara in Bangladesh and Bahrampur in the state of West Bengal in India. On completion, the transmission line will enable Bangladesh to import 250 MW from India, while NTPC power supply arrangements are being finalized as well.

Recently, Abul Mal Abdul Muhith, the Bangladesh Finance Minister, indicated that the government was developing guidelines for publicprivate partnerships and investments in the hydrocarbons, infrastructure and power sectors. Muhith was addressing international delegates at a conference organized by the International Chamber of Commerce Bangladesh in Dhaka. He also stated that the government has cleared power projects worth $1 billion in the last 12 months. The government is also organizing road shows globally to attract international investors and technology partners.

In a related development, according to the Asian Development Outlook — 2010 report released by Asian Development Bank, Bangladeshs economy is forecast to register 6.3 growth in 201011. The economic recovery has been attributed to an improvement in business and investor confidence as the electricity situation in the country is expected to improve.

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