The government has decided to bolster allocation for the Rooppur Nuclear Power Project (RNPP) despite a proposal to cut Tk18,000 crore in the development budget, underscoring its commitment to expedite the implementation of one of the country’s most expensive ventures.

The allocation for the project in the Annual Development Programme (ADP) – Tk8,706.76 crore – for the current fiscal year is set to see an increase as the Ministry of Science and Technology has proposed an additional Tk1,000 crore, according to an official of the Planning Commission.

This will bring the total allocation for the project to Tk9,706 crore in the revised ADP.

According to the proposal submitted to the Planning Commission, an initial request of Tk8,706.76 crore was made for the project in AMS software. This consisted of Tk706.76 crore from government funds and Tk8,000 crore from a loan from Russia.

However, further analysis revealed the necessity for additional funds to facilitate the project’s essential activities. Subsequently, an amendment to the initial proposal was drafted, seeking Tk9,706 crore in the revised ADP. Out of this revised amount, Tk706.76 crore is designated to be sourced from government funds, while Tk9,000 crore is to be acquired through foreign loans.

Satyajit Karmakar, senior secretary of the Planning Commission, said the revised ADP preparation for allotment to mega projects faces no hindrances.
He emphasised the government’s financial capability to cater to the needs of significant initiatives, ensuring a balanced allocation across ministries.

Despite significant progress in the RNPP project – 62.74% physical and 60.35% financial, delays in transmission line work due to the Covid-19 pandemic have impacted the production timeline, an official of the Ministry of Science and Technology said.

However, efforts are underway to bring the plant into production by the end of this year, he said.
Furthermore, the ministry has overseen crucial projects related to the RNPP, including the establishment of offsite water supply facilities and external telecommunication networks.

Under the ministry, the Bangladesh Atomic Energy Commission has undertaken the project named “Establishment of Offsite Water Supply Facility at Rooppur Nuclear Power Plant.” This project, funded by the government, has a total estimated cost of Tk241.77 crore and is scheduled for execution from July 2023 to June 2025. The project received approval at the ECNEC meeting on 30 October 2023.

Additionally, the project titled “Establishment of External Telecommunication Network for Rooppur Nuclear Power Plant” has been allocated Tk169.50 crore for the financial year 2023-2024. A request has been made to transfer Tk5.59 crore from this project to the water supply project.

In a parallel development, the power and energy sector witnessed a reduction in projects in the revised ADP, with a decrease in allocation by Tk13,123 crore to Tk37,896 crore. This reduction contrasts with the initial allocation of Tk51,019 crore for 104 projects.

Dr Zahid Hussain, the former lead economist at the World Bank’s Dhaka office, expressed concern over traditional government spending practices, underscoring the need for shunning the trend amidst the current fiscal challenges.

“Expectations were for meticulous government expenditure in development. While austerity measures are anticipated, crucial sectors should still receive protection. However, it seems that the conventional approach persists.”

Highlighting the importance of prioritising foreign loan projects during this crisis time, Dr Zahid emphasised the necessity of scaling up implementation efforts where funding is available. He suggested that such actions would signal a departure from traditional practices, reflecting adaptation to current circumstances.

He also stressed the need for timely implementation of mega projects, warning against increased costs and delays if deadlines are not met.
Meanwhile, preparations are underway to present the revised ADP, reflecting the latest budgetary adjustments, for approval at a meeting of the National Economic Council scheduled for 12 March.

The original ADP for the FY2023-24, initially set at Tk2,63,000 crore, is anticipated to undergo a reduction by 6.84%, equivalent to Tk18,000 crore, resulting in a revised total of Tk2,45,000 crore.
The revised ADP is expected to reallocate funds, with a reduction of about 11.17% in foreign funds to Tk83,500 crore from the original allocation of Tk94,000 crore.

As the government navigates budgetary challenges, prioritising key projects like the RNPP underscores its commitment to sustainable development and energy security, the officials said.

Abdul Momin, additional secretary (Development) of the Ministry of Science and Technology, explained, “Allocation requests originate from implementing agencies and are forwarded to the ERD and Planning Commission. Typically, the implementing agency submits the request after negotiations with contractors. Adjusting allocation from ADP to RADP is a standard procedure.”