The government is set to reduce the cost of a major transmission project linked to the Rooppur Nuclear Power Plant by Tk2,329 crore, but rising interest on foreign loans is offsetting part of the benefit.
The revision comes as Bangladesh moves closer to bringing its first nuclear power into the national grid, with fuel loading at Rooppur having begun on 29 April. Full-scale electricity supply is expected within about 10 months.
Officials said the project—implemented by Power Grid Company of Bangladesh—has reached nearly 99 percent physical progress and is now awaiting approval from the Executive Committee of the National Economic Council (Ecnec) for cost adjustments.
Under the proposed revision, interest payments on foreign loans will rise by Tk826 crore, mainly due to the depreciation of the taka against the US dollar.
Project Director Md Masudul Islam said the changes reflect updated exchange rates and cost rationalisation. “The project is over 98 percent complete and ready to deliver electricity once Rooppur starts generation,” he said.
The transmission project was launched in April 2018 and was initially scheduled for completion by December 2022. However, repeated extensions have pushed the deadline to June 2026.
The original cost was set at Tk10,981 crore, including Tk8,219 crore in Indian credit. Following the revision, the total cost is expected to fall to Tk8,651 crore.
Officials said costs have increased in areas such as electrical equipment, loan interest, and loan management, adding Tk2,733 crore. At the same time, spending has declined significantly in consultancy, taxes, VAT, and contingency allocations, resulting in savings of over Tk5,000 crore.
Exchange rate volatility has been a key factor behind the higher interest burden. The project was initially calculated at Tk80.83 per US dollar, but actual payments between 2018 and 2025 were made at around Tk97.65. Future costs are now being estimated at Tk122.30 per dollar.
The project scope has also been adjusted. A river-crossing transmission line has been excluded from the original financing plan and is being implemented separately, while some substation expansion works were dropped due to delays in land acquisition and tender processes.
Technical changes have also been made to align with the nuclear plant’s design, including converting some transmission lines from double to single circuit and reducing voltage levels in certain sections.
Spanning 13 districts, the project is aimed at ensuring the safe evacuation of electricity from Rooppur and strengthening the country’s overall power transmission network.