The government will review the power supply agreements of
11 companies, including India's Adani, Bangladesh's Summit, and Beximco, which
fall under the Rapid Supply of Electricity and Fuel Act. To facilitate this,
the National Review Committee, which the government formed, requested data
related to their power plants. Committee sources have indicated that additional
information will be requested in various phases.
On Thursday night (October 3), the Ministry of Power,
Energy, and Mineral Resources issued a press release regarding collecting
information related to the 11 power plants. The release said the agreements
executed under the Rapid Supply of Electricity and Fuel (Special Provisions)
Act, 2010 (amended in 2021) will be reviewed. The decision to collect data
related to the 11 power plants was made during the second meeting of the
National Review Committee on September 28.
It has been reported that, according to the committee's
decision, information has been requested regarding the Power Purchase
Agreements (PPAs), the duration and capacity components of the 11 power plants,
and related matters, including fuel costs. Among the plants, six are fuel oil and
gas-based power plants. These include the 583 MW Meghnaghat Dual Fuel Power
Plant, the 200 MW Baghabari (HSD), the 150 MW Patuakhali (HFO), the 150 MW
Ashuganj (HFO), the 162 MW Manikganj (HFO), and the 300 MW Kodda (HFO) power
plants. There are four solar power plants: the 100 MW Mongla Solar Power Plant,
the 200 MW Sundarganj, the 30 MW Lalmonirhat, and the 50 MW Sutiakhali Solar
Power Plant. The remaining plant is a coal-based power plant constructed by
Adani in Godda, with a capacity of 1600 MW.
According to sources, information regarding the 583 MW
Dual Fuel Power Plant, owned by Summit and located in Meghnaghat, Narayanganj,
has been requested. At the time of the agreement, 80 percent of the shares of
this power plant were held by the Summit Group, while the remaining 20 percent
was owned by the American company GE (General Electric). The contract for the
plant's construction was signed with the Bangladesh Power Development Board
(BPDB) on March 14, 2019.
The review committee has also requested information about
the 1600 MW power plant established by Adani in Godda, Jharkhand, India. BPDB
signed an agreement with Adani Power to construct this plant on November 5,
2017. There are allegations that confidentiality was maintained while signing
the power purchase agreement with Adani. The contract to purchase electricity
from this plant is for 25 years, and according to the terms, BPDB must buy 34
percent of the electricity even if there is no demand. Additionally, the coal
used at this power plant is reportedly being purchased at a higher price.
The 150 MW furnace oil-powered plant in Patuakhali is
owned by United Patuakhali Power Limited (UPPL), a subsidiary of United Group.
This power plant commenced commercial production (COD) in January 2021.
The 162 MW power plant in Manikganj is located in the
Singair Upazila. It is a subsidiary of the Dorin Group and falls under the
Manikganj Power Generation Company Limited (MPGCL). The plant began production
in December 2020.
Midland East Power Limited (MEPL) sponsors the 150 MW
power plant in Ashuganj. Youth Group and Viyellatex Group are investing in this
power plant in a joint venture. They have a 15-year power purchase agreement
with BPDB, which stipulates electricity supply until November 2033.
Additionally, the Summit Group owns the 300 MW furnace
oil-based power plant in Kodda. The installed capacity of this power plant is
307 MW, and Summit Gazipur-2 Power Limited supervises it. It began production
in May 2018. Among the solar power plants for which information has been
requested, the 200 MW plant in Sundarganj, Gaibandha, is operated by Teesta
Solar Limited, a subsidiary of Beximco Group. This is Bangladesh's largest
solar power plant, commissioned in January 2023. The company has a 20-year
power purchase agreement with BPDB. Former Prime Minister Sheikh Hasina
inaugurated the power plant during a rally at Rangpur Zilla School ground on
August 2 last year.
The 100 MW solar power plant established in Mongla,
Bagerhat, is operated by Energon Renewable Bangladesh Limited, a subsidiary of
Orion Group. The plant started supplying electricity to the grid in December
2021. This IPP-based power plant has a 20-year purchase agreement with BPDB,
which is set to expire in December 2041.
Additionally, the 30 MW solar power plant in Lalmonirhat
belongs to Intraco Group, which is involved in CNG and gas transportation in
Bangladesh. They are engaged in transporting gas from Bhola using CNG.
In Mymensingh, HDFC Sinpower Limited manages the 50 MW
solar power plant under construction in Sutiyakhali. Commercial production of
this plant began in November 2020, and it has a contract with BPDB that extends
until 2040.
The Awami League government enacted the "Electricity
and Fuel Supply Rapid Increase (Special Provision) Act" in 2010 for two
years. Later, the term of this law was extended three times for a total of 14
years. The law stipulates that no court can question the legality of any
measures, orders, or directives related to the import of fuel for electricity,
the establishment of power plants, or any other activities in the electricity
and fuel sector. Critics have labeled this law the "Immunity Law" for
the power sector. Allegations have been made that extensive irregularities and
corruption occurred under this law during the tenure of the Awami League
government.
On September 5, the Ministry of Power formed a
five-member national committee to review the agreements made under this law.
The committee is chaired by retired High Court Justice Moinul Islam Chowdhury
and includes Professor Abdul Hasib Chowdhury from BUET, Chartered Accountant
Ali Ashfaq, former Chief Economist of the World Bank’s Dhaka office Zahid
Hussain, and Professor Mushtaq Khan from the University of London.
Meanwhile, the national committee formed for contract review
has issued a public notice seeking information on corruption under the special
law in the Ministry of Power and Energy. Any individual can email information
and data related to corruption in electricity production and supply companies.
Complaints can be submitted to the review committee from today until the end of
the current month.