VZCZCXRO8282
PP RUEHAST RUEHBI RUEHCI RUEHLH RUEHNEH RUEHPW
DE RUEHKA #0001/01 0010139
ZNR UUUUU ZZH
P 010139Z JAN 09
FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC PRIORITY 8043
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RHMCSUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 DHAKA 000001 
 
SIPDIS 
 
DEPARTMENT FOR T: MARC HUMPHREY; ENERGY FOR NNSA 
 
E.O. 12958: N/A 
TAGS: ENRG TRGY BEXP BTIO BG
SUBJECT: BANGLADESH INTEREST IN CIVIL NUCLEAR ENERGY: IS IT 
READY? 
 
REF: A. STATE 127423 
     ¶B. DHAKA 906 
 
DHAKA 00000001  001.2 OF 002 
 
 
Summary 
------- 
 
¶1.  Bangladesh has long expressed an interest in developing a 
civil nuclear energy program to address its power generation 
needs.  This interest has increased in recent years as the 
country's steady industrialization has put further strains on 
its limited energy resources.  The Government of Bangladesh 
(GOB) has taken initial steps to prepare for a civil nuclear 
energy industry and is eager to cooperate with USG efforts to 
mitigate risks.  Serious doubts remain however, about 
Bangladesh's ability to ensure the safety and security of 
nuclear facilities, and about the economic justification of a 
very poor country sinking huge amounts of money into nuclear 
energy, rather than developing its extensive coal and gas 
reserves. 
 
Overview of Civil Nuclear Energy 
-------------------------------- 
 
¶2.  In response to action request (reftel A) Econoff recently 
visited the Bangladesh Atomic Energy Commission (BAEC) to 
discuss the future of a civil nuclear energy program in 
Bangladesh. 
 
¶3.  Bangladesh's interest in nuclear energy pre-dates its 
independence from Pakistan.  In the 1960's the government of 
Pakistan identified a site at Rooppur, near the Padma River, 
for the development of a nuclear power plant.  Political 
instability leading to the independence of Bangladesh in 1971 
halted those plans, and the authorities chose to build the 
plant in West Pakistan instead, near Karachi.  The newly 
independent GOB continued to reserve the Rooppur site for a 
future nuclear power plant, and conducted several feasibility 
studies, most recently in 1987.  In 2007 the International 
Atomic Energy Agency (IAEA) gave its approval to Bangladesh 
for the development of nuclear power.  Based on a timeline 
set according to IAEA guidelines, BAEC estimated a nuclear 
plant could be operational by the early 2020's. 
 
The Energy Alternatives 
----------------------- 
 
¶4.  The GOB's desire to develop nuclear energy is largely 
driven by increasing shortages of electricity, which has 
become ever more critical with the country's growing 
industrialization and agricultural production.  Bangladesh's 
steady economic growth of 6 percent per year will likely hit 
a plateau soon if power generation shortages are not 
addressed.  Currently, 85-90% of Bangladesh's electricity is 
generated by natural gas, with most of the remainder 
generated by coal.  Bangladesh has significant hydrocarbon 
resources, both on land and offshore, but various setbacks 
have prevented the country from exploiting them fully. 
Corrupt practices under previous governments and indecision 
by the caretaker government have prevented any new 
exploration for natural gas, while operating wells start to 
deplete. (Note: the GOB opened bids earlier this year for 
offshore gas exploration, but has not yet signed contracts. 
End Note). Coal production has been seriously hampered by 
opposition to open-pit mining and the lack of a coal policy. 
 
The Institutional Framework 
--------------------------- 
 
¶5.  BAEC is currently the only authority in Bangladesh 
concerned with nuclear energy, but BAEC anticipates the 
development of a National Nuclear Power Authority to operate 
nuclear power facilities.  Bangladesh is not yet party to the 
Vienna Convention on Civil Liability for Nuclear Damage, but 
BAEC reported its participation was "under process". 
Bangladesh has signed a number of other IAEA multilateral 
agreements including the Convention on Early Notification of 
a Nuclear Accident (1988), the Convention on Nuclear Safety 
(1996) and the Convention on the Physical Protection of 
Nuclear Material (2005). 
 
Potential Partners 
------------------ 
 
¶6.  Commercial tenders for nuclear energy generation are some 
time off, but Bangladesh has approached Russia, Japan, South 
Korea and China about providing assistance.  When the Chief 
Adviser (equivalent to Prime Minister) visited China in 
September 2008 media reports indicated China "responded 
 
DHAKA 00000001  002.2 OF 002 
 
 
positively" to Bangladesh's request, (although the Chinese 
Embassy here believes no progress on this request is 
imminent).  The response from other countries has been 
lukewarm. 
 
Challenges 
---------- 
 
¶7.  BAEC cited the lack of trained human resources as a major 
future challenge, both in the operation and regulation of 
nuclear facilities.  Bangladesh's highly-respected but small 
cohort of engineering professionals will not likely be large 
enough to support a nuclear industry without substantial 
foreign expertise.  Other challenges may include security 
concerns, disposal of nuclear waste and public opposition to 
nuclear power projects. 
 
¶8.  Serious concerns about the safety of nuclear facilities 
in Bangladesh remain.  For years a radiological source at an 
abandoned site in Chittagong was not properly safeguarded 
(reftel B).  Although BAEC, with assistance from the U.S. 
Department of Energy's National Nuclear Security 
Administration, is now taking steps to secure and remove the 
source, the slow response raises questions about the security 
of larger and more hazardous facilities in the future. 
 
Comment 
------- 
 
¶9.  Bangladesh sits on enormous coal reserves of the highest 
quality.  Similarly, a rigorous program of gas exploration 
would likely lend to a large increase in Bangladesh's already 
sizeable proven reserves.  In that context, the idea that a 
dirt-poor country like Bangladesh would spend huge amounts of 
money developing a nuclear power industry would appear to 
make little sense. 
MORIARTY