Working up to Pakistan-Bangladesh Free Trade Agreement - a Need of the Day

[Bilal9]

"Russian State Atomic Energy Corporation-Rosatom and Bangladesh Atomic Energy Commission signed a financial contract in 2015 with amounts to the United States Dollar (USD) 12.65 billion for the design, construction, and supply of twin VVER-1200 model Gen III+ nuclear reactors with 1200MW electric capacity each, including the first few years’ fresh fuel supply with Russia financing 90% of the total investment cost at an interest rate of libor plus 1.75%, capped at 4%, repayable in 28 years with 10 years’ grace period".

I am not sure of the LIBOR rate because it fluctuates all the time. Now, it is quite low. Even then, we can assume the total of (LIBOR + 1.75%) interest to be 2%. So, the $12.65 billion with 2% interest, the yearly payment will be $594.419 million for a long 28 years. It means, a payment of $16.643 billion in total. So, at the end of 28 years, the total interest payment is ($16.643 b - $12.65 b) = $3,993 million.

@bluesky bhai, total interest payment of ($16.643 b - $12.65 b) = $3,993 million i.e. $4 Billion is not a lot over 28 years. The benefits IMHO are not that bad. There will be no future loans for coal power and the larger lenders and western countries are severely against fossil fuel power generation of all types.

We did what we could, the best option considering all options.

The collective and accumulated expertise and experience of operating a nuclear power station alone is invaluable, which may lead to opening up more of them, which is strangely enough, great for the environment as a clean source of power, barring a Fukushima type unfortunate event.

We have had a research reactor for 40 some odd years, and Atomic Energy Commission since Pakistan times too.

All this being said - you are right, we should have had better negotiators to save us more money.

Oh boy, indians are going to throw a hissy fit over this.

They might, but at the end of the day - none of their business.

We have already seen what kind of "frend" Sanghis are to us.

 

[Michael Corleone]

Yes cotton is something that with more focus (as in introducing better crop tech) we can export as we have vast lands suitable for it

But need to be careful as we already have a textile sector that we are planning to leave in the long run but still need cotton for domestic consumption

On Pak side I think motorbikes, mobile phones in 1,2 years, fans and I am hopeful in couple of years wider EV sector will grow (but not too sure about exporting level) is something Pak can export to Bangladesh

I wonder what else Ban is planning to export outside of textile, electronics?

Chemicals, cement and steel if Pakistan needs them. We have surplus production

 

[Bilal9]

Chemicals, cement and steel if Pakistan needs them. We have surplus production

I think Pakistan also has ship breaking industry, steel re-bar production and plenty of cement. Chemicals meaning fertilizer, not so sure about...

 

[Michael Corleone]

Chemicals meaning fertilizer, not so sure about...

We can supply them with hydrogen peroxide, different types of acids and other types of chemicals. Unless they can meet their internal demand themselves

 

[bluesky]

@bluesky bhai, total interest payment of ($16.643 b - $12.65 b) = $3,993 million i.e. $4 Billion is not a lot over 28 years. The benefits IMHO are not that bad. There will be no future loans for coal power and the larger lenders and western countries are severely against fossil fuel power generation of all types.

No Western country ever pressured a poor BD to build nuclear power plants. BD did it because many people think it will somehow enhance the prestige of the country, and all kinds of FDIs will be running to BD. All are false assumptions.

Fossil-based power plants with an installed capacity of 12,000 mW could have been with this $16 billion. All the countries have not only fossil-based but also coal-based plants. I have no objection if our own people had built the plant. The same goes for the Padma Bridge. Do everything by yourselves, I have the full endorsement.

Vietnam has decided to build its first atomic power plant sometime after 2035 considering that its economy would be in better shape by that time. But, idiotic BD leadership wanted to be a Champion at this.

I think neither a mere 2400 mW power will solve any shortage of power nor it will bring in FDI companies. So far it is not happening.

Vietnam mulls return to nuclear energy after 2035 - VnExpress International

Vietnam is seeking a return to nuclear power after 2035 amid warnings that dwindling natural resources could lead to electricity shortages.

e.vnexpress.net

Vietnam is seeking a return to nuclear power after 2035/ 2045 amid warnings that dwindling natural resources could lead to electricity shortages.

A draft power plan by the Ministry of Industry and Trade envisages building nuclear power plants with a capacity of 1,000 MW by 2040 and 5,000 MW by 2045.

The Vietnam Energy Association recently exhorted the government to reconsider nuclear power.

In 2009 Vietnam had planned to build two nuclear power plants in the south-central province of Ninh Thuan at a cost of several billion dollars, but the National Assembly shot down the proposal in 2016 on cost grounds.

Nguyen Quan, former Minister of Science and Technology, had warned in 2018 that traditional energy sources were dwindling, posing a need to look at alternative sources like nuclear power.

In its plan, for 2021-30, the ministry also rules out building coal-fired power plants after 2030, instead prioritizing renewables and liquefied natural gas (LNG).

It has warned of power shortages between 2021 and 2025 after construction of new thermal and gas-fired plants fell behind schedule.

Coal plants accounted for 36.1 percent of electricity supply last year, followed by hydropower at 30.8 percent, according to the Vietnam Energy Association.

 

[UKBengali]

No Western country ever pressured a poor BD to build nuclear power plants. BD did it because many people think it will somehow enhance the prestige of the country, and all kinds of FDIs will be running to BD. All are false assumptions.

Fossil-based power plants with an installed capacity of 12,000 mW could have been with this $16 billion. All the countries have not only fossil-based but also coal-based plants. I have no objection if our own people had built the plant. The same goes for the Padma Bridge. Do everything by yourselves, I have the full endorsement.

Vietnam has decided to build its first atomic power plant sometime after 2035 considering that its economy would be in better shape by that time. But, idiotic BD leadership wanted to be a Champion at this.

I think neither a mere 2400 mW power will solve any shortage of power nor it will bring in FDI companies. So far it is not happening.

Vietnam mulls return to nuclear energy after 2035 - VnExpress International

Vietnam is seeking a return to nuclear power after 2035 amid warnings that dwindling natural resources could lead to electricity shortages.

e.vnexpress.net

Vietnam is seeking a return to nuclear power after 2035/ 2045 amid warnings that dwindling natural resources could lead to electricity shortages.

A draft power plan by the Ministry of Industry and Trade envisages building nuclear power plants with a capacity of 1,000 MW by 2040 and 5,000 MW by 2045.

The Vietnam Energy Association recently exhorted the government to reconsider nuclear power.

In 2009 Vietnam had planned to build two nuclear power plants in the south-central province of Ninh Thuan at a cost of several billion dollars, but the National Assembly shot down the proposal in 2016 on cost grounds.

Nguyen Quan, former Minister of Science and Technology, had warned in 2018 that traditional energy sources were dwindling, posing a need to look at alternative sources like nuclear power.

In its plan, for 2021-30, the ministry also rules out building coal-fired power plants after 2030, instead prioritizing renewables and liquefied natural gas (LNG).

It has warned of power shortages between 2021 and 2025 after construction of new thermal and gas-fired plants fell behind schedule.

Coal plants accounted for 36.1 percent of electricity supply last year, followed by hydropower at 30.8 percent, according to the Vietnam Energy Association.

Nope to build 12000MW of coal power would cost roughly 30 billion US dollars. It is a little bit cheaper in countries like India as they can build their own, although less efficient and so the running costs would be higher.

BD paid 14 billion US dollars for 2.4GW of nuclear power. The great thing about a nuclear power station is that the fuel costs are way less than a coal fired power plant and you do not need that expensive infrastructure to transport the coal to the power station.


As an example of the "life-cycle" costs of the different forms of power, please see below:

Levelized cost of electricity - Wikipedia

en.wikipedia.org

Yes nuclear is around 50% more expensive that coal but BD gets to train and learn how to operate a nuclear power plant this way and also the energy is much much more cleaner than coal.

You misunderstand the complex reasons why a country like BD went for nuclear power at this stage. A country of 165 million needs to start learning more about this form of power for many reasons about from just simple power generation.

 

[bluesky]

Nope to build 12000MW of coal power would cost roughly 30 billion US dollars. It is a little bit cheaper in countries like India as they can build their own, although less efficient and so the running costs would be higher.

No, your figures are completely wrong. Please read the quotation below to know how much does it cost to build a gas-fired power plant in the UK. Please use the internet search engine to prove me wrong.

"Figures have been quoted that gas-fired power stations cost £0.5m/MW to build, whilst nuclear could be as much as £6.9m/MW". 2015/09/25

£0.5m/MW means US$0.694million per MW. So, it is $69.4 million for a 100 MW capacity. It means about $1.7 billion for the entire 2-unit 2,400 MW capacity Rooppur plant. We can say, at the highest the cost would have been $2.4 billion in the case the plants were gas-fired.

Usually, during the initial estimation of a power plant project, the cost is roughly calculated at $100 million for a 100 mW plant. So, with only $2,400 million BD could have built 2400 mW capacity gas-fired power plants.

But here, the Rooppur plant is costing us a very high $12 billion that will go up to $16 billion with the addition of interest.

About your excuse of higher running cost, if you are figuratively that correct, then all the developed countries would have built only nuclear power plants 5 decades ago. So, please do not utter this nonsense again. It is a very cheap stunt amounting to a lame excuse.

 

[bluesky]

Yes nuclear is around 50% more expensive that coal but BD gets to train and learn how to operate a nuclear power plant this way and also the energy is much much more cleaner than coal.

You seem to have many excuses on the wrong construction of nuclear power plants. About training of talented BD people. Bd had quite a few coal-fired power plants after the British left. Can you say that our great talents had built only one similar plant after taking training with and learning from those existing plants?

How about railway tracks or truss bridges? Can you now ask our talents to design and build them? People of all other countries can do things that our talents cannot do. We may have some DNA/ intelligence deficiencies.

During Pakistan time the Kaptai Dam and Electricity project was built. Can you say our great people learned from it and built another similar plant downstream? No wonder, you also do not know that the downstream has the capacity to produce another 100 MW of power. After all, you are an educated BD elite like many others!!

So, please do not say stupid things here without understanding first the quality of our people who are quite incapable to build proper institutions or organizations required to pursue those kinds of "Learn & Build" things.

Our only capability is to sell underwear, earn a few bucks and ask foreigners to build technology plants with their money and know-how.