The interim government in Bangladesh, led by Chief Adviser Muhammad Yunus, has established a committee to assess power contracts signed by exiled former Prime Minister Sheikh Hasina. The committee’s focus includes examining bilateral power purchase agreements, particularly those involving the Adani Group from India.
Review Committee’s Recommendations
Under the Bangladesh Ministry of Power, a review committee has proposed the appointment of a reputable legal and investigative agency to scrutinize major power production agreements signed during Sheikh Hasina’s tenure from 2009 to 2024. An official statement from Chief Adviser Muhammad Yunus’s office revealed that the National Review Committee on the Ministry of Power, Energy, and Mineral Resources suggested investigating these agreements in detail.
The committee is particularly reviewing seven significant power projects, including the Adani Group’s Godda (BIFPCL) 1234.4 MW coal-fired plant. The other projects under review involve a Chinese firm that built a 1320 MW coal-fired plant and several deals with Bangladeshi business groups close to Hasina’s regime.
Investigation and Evidence
The review committee has reportedly collected substantial evidence that may justify the cancellation or reconsideration of the power agreements based on international arbitration laws and procedures. The committee’s findings suggest that these contracts should be revisited in light of possible violations and financial discrepancies.
Additional Time and International Support
The committee has requested more time to analyze additional “solicited and unsolicited contracts” linked to the power sector. To assist in this thorough investigation, the committee has recommended the immediate engagement of top international legal and investigative agencies.
Power Sector Relations with India
The power sector remains a key area of cooperation between Bangladesh and India. However, tensions have recently emerged over the Adani Group’s Godda thermal plant in Jharkhand, which was designed to supply power exclusively to Bangladesh. India’s recent legislative changes, which allow the company to sell power domestically, have caused friction, especially after disputes over an outstanding USD 800 million power supply bill.
Despite Bangladesh’s state-run Power Development Board settling USD 150 million of the dues, concerns over the unpaid balance have strained relations between the two nations, with both sides seeking a resolution amid the ongoing dispute.
