BANGLADESH

EXPERIENCES, LEARNED LESSONS AND MAIN ISSUES IDENTIFIED IN THE CONTRACTUAL APPROACH FOR THE

FIRST NPP

K M Rezaur Rahman Bangladesh Atomic Energy Commission

International Atomic Energy Agency

TECHNICAL MEETING ON INFORMATION EXCHANGE AMONG EXPERIENCED AND

FUTURE OPERATORS

Vienna, 16-18 October 2012

Outline

• Cooperation from Vendor Country

• Contractual Arrangement

• Site Engineering Survey & FE

• Funding and Financing

• HRD

• Conclusion

• Agreement between the Government of the People's Republic of Bangladesh the Russian Federation on cooperation concerning the construction of a nuclear power plant on the territory of Bangladesh

• Scopes of the Cooperation Agreement:

• Design, construction and commissioning of the ‘Rooppur NPP’ consisting of two VVER-type reactor power units ;

• Planning and monitoring of ‘Rooppur NPP’ construction activities and services performed by the contractor, quality management;

• Develop the "Rooppur" NPP technical design including the development of the Preliminary Safety Analysis Report (PSAR) and work documentation;

• Training of Rooppur NPP personnel;

• Supply of nuclear fuel and take back of spent fuel;

• Funding of the NPP;

• Cooperation in the management of radioactive wastes

02 November

2011

The IGA

• Agreement between the Federal Service for Ecological, Technological and Nuclear Supervision of the Russian Federation and the Ministry of Science and Technology of the People's Republic of Bangladesh on cooperation in the field of nuclear and radiation safety in the use of nuclear energy for peaceful purposes

• Scopes of the Cooperation Agreement:

• Development of legislative basis in the field of nuclear and radiation safety for introduction of NPP;

• Licensing of activities in the field of peaceful use of atomic energy and;

• Oversight and control activity including the development and implementation of inspection programs;

• Physical protection of nuclear installations, radiation sources, storage facilities, nuclear materials and radioactive substances;

• Emergency preparedness and emergency response;

• Training of nuclear regulatory body personnel and;

• Management of radioactive waste and spent nuclear fuel, including their transportation and safe storage.

27 February

2012

The IAA

JUNE 2012

An MOU between Ministry of Science and Technology, Bangladesh and ROSATOM, Russian Federation

on the training of the staff of nuclear power sector has been

signed.

JUNE 2012

Bilateral consultations between the delegation of Russian Federation

and Bangladesh on human resource development and communication

issues in the field of the peaceful use of atomic energy were held in Dhaka

during 11 – 15 June, 2012 and a protocol has been signed.

Cooperation in HRD

A General Contract will be signed between the Customer and Contractor in light of EPCM turnkey contract for construction of the "Rooppur" NPP. The General Contract will give responsibility to the contractor (JSC "Atomstroyexport“)- for detailed engineering design of the project, procurement of all the equipment and materials necessary, and then construction works & construction management and installation, start-up and commissioning of the NPP within an agreed time and budget.

General Contract – Rooppur NPP

Feasibility Study

1) Comprehensive Engineering and Environmental Survey in accordance with the requirements of the legislative and normative legal acts and normative documents regulating the NPP location and design;

2) Derivation of input data on the natural and anthropogenic conditions at the construction project location;

3) Obtaining of the required materials for the substantiation of the site applicability for the NPP location;

4) Design solutions for the most complicated and safety related NPP buildings and structures and their protection from natural and anthropogenic adverse effect

5) Assessment of the project impact on the population and environment 6) Development of Technical and Economical Feasibility Evaluation; 7) NPP layout plans (situation plan and general layout);

Front End Engineering • Basic engineering package or packages • Project schedule and cost estimates for project control

Detailed Engineering

Procurement

EPCM Turnkey Construction & Constr.

Management

Commissioning

1) Developing the detailed design; 2) Procurement of necessary materials and

equipment ; 3) Performing construction activities as well as

management and administration of the entire project activities;

4) Installation, testing and start-up and adjustment of the equipment and power unit systems of the plant;

5) Training of the personnel and experts for construction and operation of the plant;

6) Cooperation in plant operation for a concessional period;

7) Others!

Contractual Arrangement

Site Engineering Survey & Environmental Studies and Feasibility Evaluation

Objectives: 1) Carrying out ‘Rooppur NPP’ site related Engineering Survey and Environmental studies to demonstrate its final acceptability/suitability for construction of a nuclear plant at the said project site; 2) Carrying out site related Engineering Survey and Environmental studies to derive the design basis for site related safety parameters (preparation of the pre-design documentation of ‘Rooppur NPP’ project); 3) Developing Feasibility Evaluation (project evaluation-evaluation of

technical-and-financial aspects of Project, project implementation approach (contractual approach, project schedule, cost estimate, project management,

etc.); Funding and Financing requirements) for building ‘Rooppur NPP’ .

Fields of Engg. Survey & Studies Engineering study and environmental studies are to be performed in the following fields:

1) Engineering & geodesic and topographic surveys 2) Geodynamic and seismic surveys 3) Engineering & geological and hydro-geological surveys 4) Engineering hydro-geological surveys 5) Engineering and aero-meteorological works 6) Engineering and ecological works 7) Anthropogenic conditions survey

Types of works and services specified above should comply with the requirements of Russian Federation regulatory documents in view of IAEA recommendations in terms of the composition, scope and completeness (details) as well as with the requirements of other existing legislative and normative legal acts in the field of engineering survey and regulation of the NPPs location (Bangladesh)

Allocation of Scope of Works

Total 89 Works { 62 Studies and Report preparation by RF or Bangladesh or Jointly

27 analysis of Reports (all will be performed by RF)

0

5

10

15

20

25

30

Russia Only Carried out Jointly Bangladesh Only ( noRussian Assistance)

Bangladesh with RussianAssistance

20

7 6

29

Development of Feasibility Evaluation for Rooppur NPP 1. Input data and conditions

Purpose of investments , General characteristic of the project for investments, Construction region characteristics , Main executives of the investment project

2. NPP market and capacity

Electricity market and capacity research, product demand analysis , Product sales program, Marketing strategy, Production output program

3. Main process solutions

Heat-mechanic section, Nuclear fuel management, Radioactive wastes management , Electrical and technical section, NPP Control and Monitoring System, Heating, ventilation and air-conditioning, Technical water supply, Repair works arrangement and mechanization , Radiation protection and Radiation Automatic Monitoring System

4. NPP resources provision

NPP requirement for water resources, Fuel resources, Energy resources, Other resources. Requirement for other resources

5. Project location

Region and construction place characteristics , Substantiation of project location , Land rent , List of initial permissive documentation, Land allotment expenses

6. Main civil engineering solutions

General layout and transport, Architectural and civil engineering solutions , Water supply and sewerage system, Fire protection measures, Technical protection measures. Emergency preventive measures, NPP physical protection

7. Environment impact assessment 8. NPP structure, staff and social issues

Management tasks , Conditions and nature of work at NPP, Requirements for staff for NPP operation, Staff training , I&C 9. Investment project arrangement

Arrangements for project implementation , Strategic plan, Project time-schedule 10. Investments efficiency

Investments efficiency assessment, Investment project financing strategy, Investment risks assessment 11. Conclusion and proposals

Development of Feasibility Evaluation for Rooppur NPP (Cont’d.)

Allocation of Scope of Works on development of Feasibility Evaluation for Rooppur NPP

Feasibility Evaluation contains 11 sections/areas and 45 subsections/ activities

Section No

Work No of Sub Sections

Scope

1 Input data and conditions 7 Both Customer and Contractor

2 NPP market and capacity, product nomenclature 3 Customer Only

3 Main process solutions 11 Both Customer and Contractor

4 NPP resources provision 4 Contractor Only

5 Project location 4 Both Customer and Contractor

6 Mail civil engineering solutions 6 Both Customer and Contractor

7 Environment impact assessment 0 Both Customer and Contractor

8 NPP structure, staff and social issues 5 Both Customer and Contractor

9 Investment project arrangement 3 Both Customer and Contractor

10 Investments efficiency 2 Both Customer and Contractor

11 Conclusion and proposals 0 Both Customer and Contractor

IWM has conducted a study on Mathematical modeling of the Ganges river in connection with the proposed RNPP

Assessment of hydrological and morphological characteristics of Ganges River in the vicinity of the project area on the basis of historical data, existing data and model forecasts Assessment of future hydro-morphological conditions of the river in the vicinity of the project area due to two major interventions: Gorai Off-take Dredging and Ganges Barrage; Identification of intake point and outfall on the main channel of Ganges around the project area by computing the rate of sediment transport, both suspended sediment and bed load for different hydrological conditions; Identification of adverse effects on the River erosion, deposition, over flooding at upstream or downstream of the project area due to global climate change impacts according to 4th IPCC recommendations Assessment of change in the ambient temperature of river water due to release of hot water from the power plant and possibility of recirculation of warm water from the river to the power plant

IWM has conducted a survey on Topographical and physical features survey and mapping for RNPP

Progress of Bangladesh’s Scope of Works (1/3)

Bureau of Research, Testing and Consultation (BRTC) of Bangladesh University of Engineering and Technology (BUET) has submitted the report on Site specific Seismic Study

Reviewing the geology and fault information

Compilation of earthquake database Analysis of seismic source and seismicity characteristics Probabilistic seismic hazard assessment for 200, 475, 2475 year Development of site specific response spectrum Assessment of liquefaction potential of the RNPP site Geophysical Investigation Suggestions regarding Ground Improvement Techniques

Bangladesh Water Development Board (BWDB) has submitted the report on Sub Soil Investigation for Specific Geotechnical Studies of Rooppur Nuclear Power Plant Project

Four Monitoring Wells are drilled up to 60 m depth for determination of ground Water dynamics, level and chemical analysis in the field and laboratory

Progress of Bangladesh’s Scope of Works (2/3)

Chemistry Division, BAEC is regularly collecting data on river water Chemical composition;

Health Physics Division, BAEC is regularly monitoring Background radiation;

BUET is carrying out Environmental Impact Assessment and final report will be submitted soon;

The demographic and meteorological data and information are being updated regularly.

Progress of Bangladesh’s Scope of Works (3/3)

Arrangement of at least 85% of the total cost of the project from Russian Federation as Foreign Currency and a part of local currency requirement in the form of State Credit and other forms of soft loan*

Arrangement of about 15% of total cost from local sources (Government’s own arrangement) for local currency requirement

*Signing of a bilateral Agreement between Bangladesh and Russia on Providing State Credit by Russian Federation to Bangladesh for construction of Rooppur NPP in accordance with the IGA of 2nd November 2011

National position on Funding and Financing – Rooppur NPP

Traditional Sovereign Model for Rooppur NPP

Mix of equity (Public fund) and debt funding (state credit & soft loan from vendor sources)

Financing Model

Traditional Sovereign State Model

• Government led and funded investment Projects;

• State Guarantee through direct guarantee from the Ministry of Finance;

• The main characteristics of the credit (amounts, tenure, currency, etc.) will be determined by the States

The Government has taken initiatives to strengthen infrastructure for education and research in nuclear science and technology and major universities have been instructed in this regard;

University of Dhaka has established a new DEPARTMENT OF NUCLEAR ENGINEERING and a decision has been taken by BUET on introduction of courses on nuclear engineering in its existing DEPARTMENT OF MECHANICAL ENGINEERING; Technical Institutions (Polytechnic and Vocational) located in Dhaka are being requested to introduce appropriate courses on nuclear energy;

Training of personnel from the Russian Federation;

An integrated national HRD Plan is under development and will be finalized soon. Dhaka University has signed an MOU with Russian Institution for collaboration in nuclear education and research

National Position on HRD

20

Centre's main goals:

• Distribute general knowledge and information among public;

• Increase popularity of nuclear science & technical education for younger generation;

• Motivate learning and creative activities of school students

• Demonstrate most recent scientific and technological achievements to professional bodies

Steps have been taken to establish a Nuclear Energy Information Centre at Bangabandhu Novo Theatre (Planetarium), Dhaka The Nuclear Energy Information Centre will be an up-to-date high-tech cinema theatre equipped with panorama 3-D projection, computer graphics and animation, stereo sound and interactive consoles.

Establishing Nuclear Energy Information Centre, Dhaka

• A separate Agreement will be signed between the two countries on financing according to the IGA signed;

• A General Contract will be signed between the Customer and Contractor in light of EPCM turnkey contract for construction of the RNPP;

• With this arrangement, Bangladesh will have the ownership of the project;

• Maximum national participation in different phases of implementation will be ensured through this arrangement;

• The future expansion of the nuclear power program will be benefitted following this approach.

Conclusion

Thank you for your kind attention!!