17 February 2023
Transparency International Bangladesh (TIB) has expressed serious concerns over a recent power agreement between Bangladesh and the Adani Group, calling it "vague and discriminatory." TIB has called on the government to review or cancel the deal, which involves the purchase of 1600MW of electricity from the controversial Indian company's power plant. The Adani Group has been accused of share and account fraud in the past.
According to TIB, the agreement could result in Bangladesh's power sector becoming dependent on the Adani Group if the deal is carried out, which could have serious consequences for the country. The watchdog has urged all parties to carefully examine and verify the terms of the agreement before proceeding, as the people of Bangladesh may bear the consequences of any actions taken.
Reports indicate that under the Power Purchase Agreement (PPA), Bangladesh would be required to pay three times the local price for electricity produced at the Adani Powerplant in Godda, Jharkhand. TIB's Executive Director, Dr. Iftekharuzzaman, has criticized the agreement for ignoring the interests of Bangladesh and potentially favouring those of the Adani Group, which could result in the country's electricity sector being held hostage by the company.
TIB has also raised concerns over the coal used in the Godda power plant, reportedly sourced from Adani-owned mines in Indonesia and Australia. The entire process of unloading, transportation, and transmission of the electricity generated from the coal would be carried out through Adani-owned facilities, with Bangladesh bearing the resulting costs. TIB warns that electricity supplied through this project would be charged at an unusually high rate compared to other suppliers in the country.
As such, TIB has called on the Bangladesh Power Development Board and policymakers to revise the terms and conditions of the agreement urgently. The watchdog has cited information from reliable international sources, including Australian-based AdaniWatch, in support of its concerns and urged a collaborative effort to ensure that the deal is in the best interests of Bangladesh.