Securing Bangladesh's Nuclear Future: Is the Regulated Asset Base Model the Answer to Address Project Corruption?

Abstract

Bangladesh's goal of achieving high-income status by 2041 requires dependable, low-emission, and affordable energy. With near-universal grid coverage and increasing demand, nuclear energy is a strategic asset for long-term baseload supply. However, the existing financing model, typified by the country's most expensive $12.65 billion Rooppur project which is 90% Russian loan funded, creates national fiscal strain, inflated costs, and systemic corruption risks. The regulated asset base (RAB) model, a framework in utility regulation, offers a viable alternative. By distributing a small levy among Bangladesh's roughly 37 million electricity bill payers, the RAB model can mobilize significant low-cost capital. This reduces reliance on foreign debt and enforces disciplined, transparent project management from the start. This perspective article expects that implementing a RAB model for future nuclear projects in Bangladesh would potentially reduce corruption risks, attract healthy international competition, and lower the ultimate cost of electricity. Our analysis references global examples, specifically the United Kingdom's Sizewell C and Thames Tideway Tunnel projects, and presents a Bangladesh-specific framework. Strengthening the capacity and independence of local regulator (Bangladesh Energy Regulatory Commission [BERC]) is essential to this shift, acting as the guarantor for both investors returns and consumer protection. The RAB model provides Bangladesh an alternative path to energy security, fiscal prudence, and clean power, provided immediate regulatory reform is adopted.