MoST sends proposals to cabinet bodyRussian consultant for Rooppur NPP

FT ONLINE

Ministry of Science and Technology (MoST) has forwarded a proposal to Cabinet Committee on Public Purchase to award a US$ 120-million contract to a Russian company for providing consultancy services for Rooppur Nuclear Power Plant (NPP) project.

The purchase committee may decide on the proposal today (Wednesday), sources said.

In its proposal, the ministry said the Russian firm - Rostechnadzor TSO JSC VBO Safety - expressed its interest to Bangladesh Atomic Energy Regulatory Authority (BAERA) to provide consultancy services in different stages of Rooppur NPP construction up to 2026.

The $12.65-billion Rooppur project is 90 per cent funded by a loan from the Russian government, and the plant is being built by Russian Rosatom State Atomic Energy Corporation. Its two units, generating 2.4 gigawatt electrical (GWe), are planned to be operational in 2023 and 2024 respectively.

Rosatom will operate the units for the first year before handing those over to local operators. Russia will supply the nuclear fuel for the plant and also take back its spent nuclear fuel.

Rostechnadzor has been providing services to Bangladesh since 2016. According to the ministry proposal, the company would have to be paid Tk 2.42 billion in total for its services up to 2018.

Of the amount, over Tk 330 million has already been paid by the authorities concerned on urgent basis. MoST has also sought nod from the cabinet committee for approving this payment.

Asked whether the contract was awarded in violation of public procurement rules as there was no open tender for it, Science and Technology Minister Yeafesh Osman said that it was done as per rules.

The guidelines of International Atomic Energy Agency (IAEA) also suggested taking regulatory services from a single source, and the proposal was approved by BAERA.

According to MoST officials, two different negotiation committees had scrutinised the offer of the Russian company before recommending it to the ministry for approval.

Defending the proposal they said since the nuclear plant would use VVER 1200 Ger III reactor, manufactured by Russia, it is wise to take consultancy services from a company of the same country.

Citing Section 110 of Public Procurement Regulations (PPR) 2008, they added that as the purchase of the consultancy services was made from a single source, it was not a violation of the rules.

According to the proposal, the Russian company will provide consultancy services for licensing, formulating regulatory code, design, construction, laboratory construction, regulatory framework and standard guide formulation, and quality control of different equipment of NPP.

On 4 November 2017, Bangladesh Atomic Energy Commission received from BAERA the design and construction license of Unit-1 of the plant.

Prime Minister Sheikh Hasina inaugurated construction work of the project on November 30, 2017. The country's first NPP is being constructed at Rooppur in Ishwardi under Pabna, on the bank of Padma River, 140 km west of Dhaka.