The Bangladesh government has launched a high-stakes investigation into power generation contracts signed under former Prime Minister Sheikh Hasina’s regime, including a contentious agreement with India’s Adani Power. A committee led by Justice Moyeenul Islam Chowdhury has proposed hiring a global legal firm to ensure a rigorous and transparent review of contracts from 2009 to 2024. The contracts, both solicited and unsolicited, have faced criticism for their financial terms, environmental impact, and questionable sustainability.
The committee’s probe comes amidst mounting controversy surrounding the Adani Group, whose chairman, Gautam Adani, was recently indicted in the United States over an alleged $265 million bribery scheme. The scandal has sent shockwaves through Adani’s $142 billion multinational business empire, which spans industries including ports, energy, and agriculture. The review of Bangladesh’s Adani deal has gained urgency as the power company is accused of charging Bangladesh significantly higher rates than India’s other private producers.
Bangladesh’s scrutiny extends beyond Adani, also targeting a joint-venture agreement with a Chinese firm for a 1,320 MW coal plant and six other energy contracts with domestic businesses. Sources revealed last month that the government was alarmed by Adani Power’s nearly 27% higher tariffs. The committee has hinted that the renegotiation or cancellation of certain agreements could be pursued in line with international arbitration standards.
Adani Power, operating the 1,600 MW Godda plant in Jharkhand, India, has been supplying electricity to Bangladesh since 2022. However, Bangladesh recently struggled to meet a staggering $800 million unpaid bill, leading Adani Power to curtail supply. To resolve the crisis, officials announced plans to gradually increase monthly payments, starting with $100 million.
Bangladesh’s power sector woes are compounded by broader economic struggles linked to high fuel and goods costs following Russia’s invasion of Ukraine. The political upheaval following Sheikh Hasina’s removal from office in August has further exacerbated the country’s financial instability, putting immense pressure on the interim government to address the power sector’s challenges.
