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Bangladesh Seeks to Evaluate Key Energy Projects, with Adani Group also on the List

By Consultants Review Team Monday, 25 November 2024

A review committee established by Bangladesh's interim administration on Sunday suggested hiring an investigation agency to look into power agreements inked by deposed Prime Minister Sheikh Hasina's rule with several commercial organizations, including one with India's Adani Group.

According to an official statement, the National Review Committee of the Ministry of Power, Energy, and Mineral Resources has recommended the appointment of a reputable legal and investigative agency to review the major power production agreements signed during Sheikh Hasina's autocratic regime from 2009 to 2024.

According to a statement provided by Chief Adviser Muhammad Yunus' office, the committee is now assessing seven key energy and power projects, including the Adani (Godda) BIFPCL 1234.4 MW coal-fired plant, a completely owned subsidiary of Adani Power Limited.

The six other agreements include one with a Chinese company that built a 1320 MW coal-fired power plant, and the rest with Bangladeshi business organizations thought to be close to the previous administration.

According to the statement, the committee gathered substantial evidence that the agreements should be dissolved or revised in accordance with international arbitration norms and processes. It stated that the committee need further time to review other solicited and unsolicited contracts.

In doing so, we urge the immediate recruitment of one or more top-level international legal and investigative agencies to help the committee, according to the statement, citing a letter from the committee, which is chaired by retired High Court judge Moyeenul Islam Chowdhury.

India's External Affairs Ministry previously stated that cooperation in the electricity and energy sectors has become an important pillar of India-Bangladesh relations.

However, the Adani Group recently addressed a letter to the Bangladesh government regarding their outstanding USD 800 million power supply bill, while Bangladesh's state-run Power Development Board stated that despite the dollar crisis, they had already paid USD 150 million and expected to pay the full amount.

Adani's Godda thermal plant was built specifically to give power to Bangladesh, but India recently modified a legislation that allows the Indian business to sell Godda power in the domestic market, generating concerns that Bangladesh will receive dedicated power supply from the project.

The interim administration had already constituted a committee to review contracts issued under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010 (Amended 2021).

The committee was tasked with investigating any claims of wrongdoing within the country's electricity and energy production and supply organizations.

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