THE National Review Committee’s report on the power sector confirms what independent researchers and energy experts have asserted for years that the Awami League government’s energy policy was less about energy security and more about systemic plunder. The interim government appointed the five-member committee led by a former High Court judge to review the power purchase agreements with independent power producers under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010 which was annulled by the interim government. The committee submitted the report to the Power Division on January 20 and briefed the press on their findings on January 25. The committee says that the Act, which was designed as a temporary measure but was in effect for over 14 years, served as a legal fortress, shielding non-competitive and controversial deals from judicial and public scrutiny. The committee has also suggested scrapping some deals and revising some others. Based on its findings of ‘concrete evidence of corruption’ in the Adani Power deal, the committee has suggested that the government should scrap the deal with the Adani Power Limited. It has identified three reasons — place, price and condition — to conclude that massive corruption took place while signing the agreement.
The committee claims that details of illegal transaction of funds in this connection have already been gathered and says that, under the deal, Bangladesh needs to pay an extra $400-500 million annually for power from Adani. Many components of the deal — from the selection of the location of the power plant, the pricing and the conditions — make it evident that the deal involves massive corruption. Initially Godda in Jharkhand of India and Maheskhali in Cox’s Bazar of Bangladesh were identified as the site for the plant, but later Maheskhali was bypassed for Godda without justification. The imported power from this plant costs nearly double that of other Indian sources, draining $1 billion from the national exchequer every year. These revelations validate the long-standing warnings that the ‘special provisions’ were designed to facilitate the transfer of public wealth into private pockets under the guise of an energy emergency. By bypassing competitive bidding and marginalising the Bangladesh Energy Regulatory Commission, the ousted Awami League regime established a parallel governance system that prioritised political patronage over the economic or energy stability of the country. The committee also recommends renegotiation with local independent power producers and revision of controversial deals.
The government should, therefore, heed the review committee’s report and explore ways to scrap the ruinous Adani deal. The authorities must also ensure that any future engagement with independent power producers is predicated on actual generation rather than the mere existence of a plant. The report should also serve as a stern lesson for both the current interim government and any future elected administration that the era of opaque, non-competitive deals must end permanently.
