Bangladesh seeks review of power deals by sheikh hasina including one with adani group

Bangladesh seeks review of power deals by sheikh hasina including one with adani group

A review committee under the Bangladesh power ministry suggested investigating bilateral power purchase agreements signed by exiled former Prime Minister Sheikh Hasina with different business conglomerates, including India's Adani Group, news agency PTI reported.

The interim government, headed by Chief Adviser Muhammad Yunus, had formed a committee to review power purchase contracts signed under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010 (Amended 2021).

“The National Review Committee on Ministry of Power, Energy and Mineral Resources has recommended the appointment of a reputed legal and investigation agency to review the major power production agreements signed during the autocratic regime of Sheikh Hasina from 2009 to 2024,” read an official statement issued by Chief Adviser Muhammad Yunus’s office.

The Power Ministry committee is reviewing seven major energy and power projects, including the Adani (Godda) BIFPCL 1234.4 MW coal-fired plant, a wholly-owned subsidiary of billionaire Gautam Adani's Adani Power Limited.

The six other agreements include one with a Chinese company that built a 1320 MW coal-fired power plant, while the rest are with Bangladeshi business groups considered close to Hasina's regime.

The statement noted that the review committee has gathered “enormous proof” that warrants the agreements' scrapping or reconsideration in accordance with international arbitration laws and procedures.

The committee also needed more time to analyse other “solicited and unsolicited contracts”, the statement read. “In doing so, we recommend the immediate appointment of one or more top-level international legal and investigation agency or agencies to assist the committee,” the statement said, quoting a letter from the committee, headed by retired High Court judge Moyeenul Islam Chowdhury.

India considers the power sector one of the key sectors of bilateral cooperation with neighbouring Bangladesh.

The Adani Group built the Godda thermal plant in Jharkhand exclusively to supply power to Bangladesh. Still, India recently changed a law allowing the company to sell power in the domestic market.

The recent legislative changes are attributed to the recent conflict between the company and Bangladesh over an “unpaid” USD 800 million power supply bill. The company recently sent a letter to the Bangladesh government over “unpaid” dues, while Bangladesh’s state-run Power Development Board said they had already paid USD 150 million despite its dollar crisis and was expecting to pay the full amount.