The IMF team inquires about the electricity tariff of the RNPP



| Updated:
November 07, 2022 08:36:52

The visiting International Monetary Fund (IMF) delegation inquired with the country’s energy regulator on Sunday about the tariff for electricity to be generated from the Rooppur Nuclear Power Plant (RNPP) being built in Ishwardi, Pabna.

He wanted to know if a power purchase agreement (PPA) had been signed between the nuclear power producer and the buyer, officials said.

Bangladesh Energy Regulatory Commission (BERC) officials informed the IMF delegation that Bangladesh’s state-run electricity buyer – Bangladesh Power Development Board (BPDB) – has not yet signed no agreement in this regard.

Under the BERC rule, the commission only has the power to set the tariff for electricity to be generated from the plant, BERC officials told the IMF delegation.

The IMF team, led by the IMF’s Asia and Pacific Division Chief, Rahul Anand, held discussions with BERC officials as part of their negotiations on Bangladesh’s request for $4. $5 billion, an official added.

The 2,400 megawatt RNPP project is the largest of several megaprojects currently being implemented in Bangladesh under a supplier credit agreement with Russia.

The engineering division of Rosatom State Corporation is the designer and general contractor for the project.

Atomstroyexport, the international projects subsidiary of Russian nuclear energy company Rosatom, is the prime contractor.

Russia will provide around $11.87 billion in loan – it has already released around $3.77 billion until June 2022 to implement the project.

The first unit (1200 MW) of the project has already completed 70% of the physical works, and the second unit (1200 MW) has completed 53% of the physical works.

During the meeting, the IMF team also inquired about the BERC tariff setting procedure and relevant regulations.

He also wanted to know how many times a year the BERC has the power to raise energy prices like electricity and natural gas.

The team at the Washington-based lending agency also inquired about the grant requirement in the power and energy sector, and the procedure for awarding grants to government-operated entities. ‘State.

They also inquired about the status of the various funds created by the BERC such as the Gas Development Fund (GDF), the Energy Security Fund (ESF) and the process of depositing and withdrawing money from the funds.

The IMF team, however, did not recommend anything to the BERC, a senior BERC official said.

BERC officials, led by President Md Abdul Jalil, answered questions from the IMF team during the meeting.

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