Summary
In 1986, an explosion at the Chernobyl nuclear power plant in Ukraine destroyed the reactor building and released massive amounts of radioactive contamination. A temporary shelter was built over the damaged reactor to prevent further contamination. The United States is a major donor to an international project to build a new shelter to replace the existing one, which is badly deteriorating. GAO was asked to (1) assess the progress toward completing the new shelter, (2) review the cost estimates to complete the project, and (3) assess the U.S. role in overseeing and funding the project. To carry out its work, GAO analyzed program documents, interviewed U.S. and international program officials, and visited the Chernobyl nuclear power plant.
Although two of three construction components--site preparation and stabilization of the existing shelter--are nearly finished, construction of the new shelter has fallen about 7 years behind schedule. Over the past couple of years, the main reason for schedule slippage has been the failure to award a construction contract. The lack of a contract is partly the result of a lengthy disagreement between Ukraine and the European Bank for Reconstruction and Development (EBRD). In late 2006, the Chernobyl nuclear power plant director told GAO that the donors should not make any additional contributions to the project until contracting issues were resolved. These problems contributed to donors' concerns about when and at what cost the project will be completed. In addition, technical uncertainties associated with the construction of the new shelter have also contributed to schedule slippages and threaten to further delay the project. The estimated cost to complete the Chernobyl Shelter Project is currently $1.2 billion. However, a higher cost estimate is likely due to, among other things, escalating prices for labor and materials. Also, many other factors, such as expanding the project's scope to include the removal of the radioactive reactor fuel, could raise costs further. The Department of State, which has the lead role for the U.S. government, relies on the EBRD to directly manage the project, including the disbursement of funds. The United States has pledged $203 million for the project but still has to provide $49 million to meet its current commitment. In addition, the United States will likely be requested to provide funds beyond the $203 million pledged because some donor governments may not have the resources or may no longer be willing to provide additional funds. To date, the United States has not placed conditions or benchmarks tied to tangible progress toward project completion on its contributions to the Chernobyl Shelter Fund.
Recommendations
Our recommendations from this work are listed below with a Contact for more information. Status will change
from "In process" to "Implemented" or "Not implemented" based on our follow up work.
Director:
Team:
Phone:
Eugene E. Aloise
Government Accountability Office: Natural Resources and Environment
(202) 512-6870
Recommendations for Executive Action
Recommendation: To help ensure that the United States has a clear and consistent strategy--as well as a sound basis for continuing to support the Chernobyl Shelter Project--the Secretary of State should, working in consultation with other contributors and EBRD, consider establishing specific performance benchmarks for the project that need to be met before additional pledges of funds are made in the future.
Agency Affected: Department of State
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To help ensure that the United States has a clear and consistent strategy--as well as a sound basis for continuing to support the Chernobyl Shelter Project--the Secretary of State should, working in consultation with other contributors and EBRD, consider periodically reviewing and revising the benchmarks to ensure they are relevant and applicable to the project's performance goals and time frames.
Agency Affected: Department of State
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To help ensure that the United States has a clear and consistent strategy--as well as a sound basis for continuing to support the Chernobyl Shelter Project--the Secretary of State should, working in consultation with other contributors and EBRD, consider obtaining an independent validation of major revisions to cost estimates.
Agency Affected: Department of State
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To help ensure that the United States has a clear and consistent strategy--as well as a sound basis for continuing to support the Chernobyl Shelter Project--the Secretary of State should, working in consultation with other contributors and EBRD, consider developing a contingency strategy for obtaining the additional funding that may be needed to complete the project. The strategy should include encouraging other major donor countries and the European Commission to also contribute additional funding.
Agency Affected: Department of State
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: Furthermore, to increase the State Department's accountability and transparency for funding the project, the Secretary of State should provide a detailed annual report to Congress about the status of the project, including project costs, project milestones, and estimated completion dates.
Agency Affected: Department of State
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
