In a written explanation signed by the company's Managing Director Dr. Jahidul Hasan on Friday, it was stated that these confusions have arisen due to evaluations based on fragmented information without a full understanding of the special contract structure and complex financing method of the Rooppur project.
The explanation stated that Bangladesh's first nuclear power plant is currently in the final stage of preparation for operation. Each phase of the project's planning, financing, construction, testing, and commissioning is completely different compared to conventional infrastructure projects.
NPCBL informed that the project is being implemented under the Intergovernmental Agreement (IGA) signed between Bangladesh and Russia. Under this, an Engineering, Procurement, Construction and Commissioning (EPCC) contract has been signed between the Bangladesh Atomic Energy Commission (BAEC) and JSC Atomstroyexport, and a separate Intergovernmental Credit Agreement (IGCA) has been signed for financing.
The organization claimed that the EPCC is not a contract for the purchase or supply of specific equipment. It is an integrated contract for the design, construction, testing, commissioning, and handover of a complete nuclear power plant in a safely operable condition. Therefore, no separate price has been set for any equipment, buildings, pipelines, installation work, or commissioning. A 'Whole Plant Contract Price' has been set for the entire project, and arrangements have been made for various 'Milestone Payments' based on work progress.
Dr. Jahidul Hasan said that presenting milestone payments as the price of specific equipment, construction work, or commissioning is not consistent with the actual structure of the contract.
Regarding financing, he informed that the Bangladesh government is bearing 10 percent of the total project cost, and the remaining 90 percent is being financed through Russian state loans. The EPCC determines the technical aspects of project implementation, while the IGCA manages the disbursement and loan management issues.
Explaining the disbursement process, he said that payment is not made to the contractor immediately upon achieving a milestone. First, after verification of the relevant work, an Acceptance document is signed. Then, according to the provisions of the loan agreement, the Russian Ministry of Finance disburses the funds through a prescribed process.
According to NPCBL, a milestone payment is a pre-determined payment arrangement against the successful completion of a specific progress stage of the project. Interpreting it as the price of any specific work, equipment, or supply is misleading.
Dr. Jahidul Hasan further said that the VVER-1200 Generation Three-Plus technology used in the Rooppur project is an integrated and proprietary nuclear technology. To ensure its safety, reliability, and international licensing, the globally recognized EPCC method has been followed. At the same time, training for Bangladeshi operators and technology transfer are also important parts of the project.
