NUCLEAR POWER PROGRAM OF BANGLADESH

AND

RISK MANAGEMENT

Sagar Alam

Senior Engineer

Bangladesh Atomic Energy Commission

Technical meeting on Risk Management in NPP Construction, 6-8 September, Vienna

Outline

Power Scenario in Bangladesh

Rooppur Nuclear Power Plant – The first NPP in Bangladesh

Infrastructure Development & IAEA Co-operation

Typical Project Management and Risk Management

VENDOR’s Cooperation's for establishing IMS in Operating Organization

Challenges

POWER SCENARIO of BANGLADESH

POWER SCENARIO IN BANGLADESH

POWER SECTOR SCENARIO

Installed Capacity 12,780 MW

Maximum Generation 9,036 MW

Peak Demand 11,405 MW

Access to Electricity 59.60%

GAS: •No significant gas discovery in recent years; •off – shore and on – shore gas exploration initiatives & Increased reserves in present fields

may change the present scenario

COAL: •Near term option •Indigenous or Imported

•Base Load;

NUCLEAR: •Safe technology •No pollution •Expected to be future Base Load option

OIL: •Volatile market •High price •For peaking duty

Government Strategy VISION 2021: Digital Bangladesh & Electrification for all

Power System Master Plan 2030: Demand and Supply Forecast up to

2030

The National Parliament passed a resolution in 2010 : “In order to

overcome the increasing power crisis in the country nuclear power

plant shall be established immediately”;

PERIOD PLAN ON NPP

By 2020 Implementation of 2 units of NPP i.e. is implementation of

ROOPPUR NUCLEAR POWER PLANT (2000 MW)

By 2030 Addition of more 2 units to ensure 10% of total generation

from NPP

Beyond 2030 Nuclear share should be 10% in overall generation mix

7

Sl.

No. Description Capacity (MW) % Possible Location (s)

1 Domestic Coal 11,250 51

North West Region at Mine

Mouth

2 Imported Coal 8,400 Chittagong and Khulna

3 Domestic

Gas/LNG 8,850 23

Gas- Near Load Centers

LNG- Near Costal Area

4 Cross-Border 3,500 9

Bahrampur - Bheramara, Silchar

- Fenchuganj, Purnia-

Barapukuria- Bongaigaon, etc.

5 Nuclear Energy 4,000 10 Rooppur NPP Site and another

site

6 Others (Oil, Hydro

and Renewable) 2,700 7 Near Load Centers

Total 38,700

Power Generation Plan: Primary Fuel Sources by 2030

ROOPPUR NUCLEAR POWER PLANT

SITE SELECTION

Rooppur Nuclear

Power Project (RNPP)

site was selected in

1963

The RNPP Site is 160

Km North East from

the Capital City

Dhaka

250 acres of land was

acquired for the

Rooppur Project.

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Agreement between the government of 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 construction; Cooperation in the management of radioactive wastes

SIGNING OF

INTER GOVERNMENTAL AGREEMENT (IGA)

First Phase (All Pre-construction works up to FCD required

for site and construction license) (2013-16)

Finance by Russian Federation (State Export Credit) up to 90% and rest

is GOB Fund

Contracts have been signed with RF organizations for

Feasibility Evaluation, Environmental Impact Assessment Report and

Site Engineering Survey and Environmental Studies (1st

contract)

Design Documentation including PSAR, PSA & QA programme and

working documentation (2nd

contract)

Priority Construction Works (3rd

Contract)

Completion of the works for the preparatory stage of Rooppur NPP

construction (4th

Contract)

The works of the first two contracts related to pre-design and design

documentations are completed and based on the documentation

BAEC has received Site License from Bangladesh Atomic Energy

Regulatory Authority on 21st

June 2016.

Main Phase (2017-2024)

Construction and commissioning will be performed in TURNKEY approach by signing a

General Contract.

A General contract for the main phase of the project has been signed on 25th

December

2015 between Bangladesh Atomic Energy Commission and Atomstroyexport of Russian

Federation.

An Inter Governmental Credit agreement has been signed for financing the main phase has

been signed on 26th

July 2016.

Probable FCD: October 2017

Two Units of VVER-1200 (Reference plant is Novovoronezh NPP II)

Commissioning of 1st Unit; October 2022

Commissioning of 2nd Unit: October 2023

Infrastructure Development &

IAEA Co-operation

1

6

Integrated Nuclear Infrastructure Review (INIR) of IAEA

• Conducted by a team of international expert Lead by IAEA

After Bangladesh request, the IAEA conducted

the INIR MISSION to Review the Status of the

National Nuclear Infrastructure in Bangladesh

during 9-15 November, 2011

• The mission reviewed the 19 issues of Phase 1 and Phase 2

•The INIR mission concluded that the Bangladesh reached Milestone 1, having “made a knowledgeable decision”; however, two open issues that still require attention from Phase 1—management and Funding/Financing;

•The INIR mission team concluded that Bangladesh nuclear power programme in general has progressed into Phase 2, being in the stage of preparation to negotiate agreement(s)/contract(s) with selected Vendor for construction of Rooppur NPP.

•The INIR mission provided 50 recommendations to fill up the gaps

•Out of 50 recommendations 13 were related to Infrastructure issue – MANAGEMENT

•Developing INTEGRATED MANAGEMENT SYSTEM and strengthening project management system and preparing for contract negotiations

Main findings of the INIR Mission

KEY REALIZATION: You cannot RELAX and wait for the Arrival of the key

• IWP Bangladesh Infrastructure 2012 - 2015 (prepared jointly with IAEA , Feb 2012)

• IWP Bangladesh Infrastructure 2015 - 2019 (updated jointly with IAEA March, 2015)

INIR Mission

Identify

Gaps

Integrated Work

Plan

TC project

implementation

Bilateral

Assistance

National Action

Plan

The IWP has been prepared and the areas of the IAEA assistance,

bilateral assistance of the vendor for the period 2015 – 2019 has

been considered

INIR-IWP for Bangladesh Infrastructure Building

National Workshops related to IMS/ Project

management / Risk management

IAEA-BAEC Workshop on Integrated Management System, 26th -29th

November, 2012

IAEA-BAEC Workshop on Management of the Nuclear Power Plant in

Bangladesh, 22nd -26th June, 2014

IAEA -BAEC Workshop on the development of EPC contract

documents for NPP construction, 31st Aug -3rd Sep, 2015

Expert Mission on Management System for NEPIO and Future Owner

Operator, 4 -7 October 2015

Key Lessons

What is IMS …

How different systems and

processes of an organization are

integrated in an IMS

Tools and Methodologies to

develop a project and also

manage different components of

that project

• Managing business priorities

• Managing learning

• Managing scope

• Managing resources

• Managing risks

• Managing suppliers

• Managing communication

• Managing time

• Managing cost

• Managing quality (spec)

Old

Modern

New

LESSONS- RISK MANAGEMENT

Defining Risk

Identifying Risk event, its causes and impacts

Preparing a Risk level matrix based on impact and probability

of risks

Determining Risk Proximity and Tolerances

Identifying Risk categories and Risk response categories

Preparing Risk management procedure

Preparing Risk reporting procedure

Describing roles and responsibilities of individuals in Risk

management system

Preparing a Sample RISK MANAGEMENT STRATEGY

Preparing a Sample RISK REGISTER

WHAT TO AVOID

Focusing on specific issues but missing the big picture

Typical Project Management

&

Risk management in Bangladesh

Annual Development Program of Government

Projects are Fully Funded by Government

GOB Fund and Project AID

FUND is approved in National Budget in national

Assembly

Project is implemented by an agency/department or

ministry under direct supervision of a ministry

Old-Fashioned, Poor documentation

Less Encouragement for using modern tools or

methodologies

New Guidelines

STEPS of ADP project Development and Submission of Development

Project Proposal (DPP)

APPROVAL of DPP by competent Authority

Appointment of Implementing agency and Project

Director

Formation of Project Implementation Committee and

Project Steering Committee

Project Execution

FISCAL YEAR WISE:

Development and Submission of Work Plan

Approval of Work Plan

Quarter Wise Fund Release

Monthly, Quarterly and Annual Monitoring

Project Revision (change of scope, price or duration)

Project Completion

Risk management in ADP project

FUND : Source is Government – 99.99% Secured

RISK ANALYSIS carried out in FE during Project Development

Price Contingency is included in Project cost to cover

change of Prices during implementation

Physical Contingency is included in Project cost to cover

change of scope of during implementation

Annual Work Plans (scope of cost of activities of a fiscal) can

be flexible from Original Work Plans of the DPP but limited to

TOTAL scope of works and Contingencies

Project Revisions or Inter Sectoral Adjustments can be made

subject to approval of appropriate level of authority

Based on the level of a Risk necessary Action is initiated by

Project Director or Subject to Recommendation from PIC,

PSC or Higher level Committee

VENDOR’s Cooperation's for establishing IMS

in Operating Organization of RNPP

Implementation of IMS

Atomstroyexport will develop the organogram of the Rooppur NPP

Operating organization and also the Management System based on IMS

recommended by IAEA

Atomstroyexport will also develop Management System for Project

Management Setup during Construction stage and help transition of

current Setup into this setup and also the transformation of Project

management setup into Operating Organization.

Shadow Management System for Turnkey Contract management

CHALLENGES

(Focusing on specific issues but missing the big picture)

Challenges

What are the Risks, What are the Difficulties, What are the Difficulties

DEVELOPMENT of RISK MANAGEMENT SRATEGY and IMPLENTATION

of RISK MANGEMENT SYSTEM it self is a challenge and there also

exists the other challenges of implementing other components of

an IMS and also the IMS as a whole

Not to forget Challenges exists in other Infrastructure ISSUES

The largest problem lies in identifying which challenges are priority

Limited manpower or Lack of Efficient manpower

Reluctance of transformation of Work Culture

Conclusion

We could not think

We learned and started to think little

We started to think a bit more and do little

Now we need to start DOING a bit more.

Looking forward to the Co-operation

Thanks for your Attention

Your valuable

Questions/Comments/Feedback

is Highly Appreciated