Shahnaj Begum, a senior journalist at the Daily Observer with over 15 years of experience in power, energy, diplomacy, and environmental reporting, recently spoke with Just Energy News Editor Shamim Jahangir about reforms in Bangladesh’s power and energy sector under the interim government. In this interview, Shahnaj Begum shares her candid views on transparency, investment, and policy consistency.
Shamim Jahangir: Assalamu alaikum, and welcome to Just Energy News. The interim government has just completed one year in office. During this time, it has introduced several reforms, including in the power and energy sector, aiming to ensure a sustainable supply and curb corruption. How do you assess these reform measures?
Shahnaj Begum: When the interim government took office after the August 5 changeover, Dr. Muhammad Fouzul Kabir Khan was appointed power and energy adviser. He’s a familiar and respected figure in the sector with strong expertise. His appointment raised expectations, though he faces a broad range of responsibilities.
Some of the reform initiatives are commendable, particularly the repeal of the Special Power and Energy Act (2010), long criticised for bypassing competitive bidding and undermining transparency. Its repeal was a major step forward.
The government also released a whitepaper exposing corruption in the previous regime’s power sector, backed by data and figures. Despite some inconsistencies, the initiative deserves appreciation.
However, the key challenge remains ensuring the availability of primary fuel. The government is struggling here due to financial constraints. Moreover, transparency still falls short in crucial areas — for example, several renewable energy contracts were cancelled, sending mixed signals to investors.
The government talks about attracting FDI, but policy direction remains unclear. Tariff negotiations with the United States have also stalled. Transparency must be matched with both financial and institutional capacity.
Shamim Jahangir: You mentioned unsolicited deals and government-to-government (G2G) arrangements. Could you elaborate?
Shahnaj Begum: Certainly. Suppose Bangladesh decides to import LNG or purchase renewable power exclusively from a single country, that violates the principle of open competition. Such arrangements bypass the bidding process.
While Bangladesh aspires to a zero-carbon transition, any preferential deal favouring a particular company or country contradicts that goal. I understand that certain trade-offs are sometimes needed to protect the RMG sector and the broader economy, but we should call these what they are — unsolicited deals, even if they’re now being rebranded as “tariff negotiations.”
Shamim Jahangir: Do you think these policy shifts could discourage foreign direct investment?
Shahnaj Begum: Absolutely. The Centre for Policy Dialogue (CPD) recently held a seminar where Chinese investors expressed concern over frequent policy reversals. China is one of Bangladesh’s largest investors in renewable energy, and they identified inconsistency as a major obstacle.
Every change of government seems to bring blanket cancellations of previous deals, regardless of merit. That’s a dangerous precedent. For example, pipeline projects that took five years to develop have been scrapped, meaning it will take another five years to replace them.
Meanwhile, gas production has fallen to around 2,000 mmcfd against a demand of 4,000 mmcfd. There’s no option but to import LNG and power to keep the system stable. But without consistent and transparent policies, foreign investors will remain cautious.
We need a national consensus across political parties to ensure policy continuity, transparency, and integrity in this sector. Otherwise, every reform will remain short-lived.
Shamim Jahangir: You’ve reported on the energy sector for over two decades. What’s your view on tackling corruption?
Shahnaj Begum: Corruption can’t be eradicated, but it can be minimised. The problem goes beyond the energy sector, it’s rooted in governance and values. We must strengthen scrutiny at every stage, from bidding to project completion. Oversight must be genuine, not symbolic.
Shamim Jahangir: Some say the ongoing reforms are contradictory — slowing projects while promising efficiency. Do you agree?
Shahnaj Begum: Reforms are essential, but they must be strategic. You can’t fix a broken system overnight. The deeper problem lies in income disparity and entrenched beneficiaries of corruption. Without addressing those structural issues, reforms will remain cosmetic.
Shamim Jahangir: The government plans to provide cash subsidies to 18 million people. Will that reduce inequality?
Shahnaj Begum: Not really. Tariff subsidies often benefit the wrong people, and cash incentives risk political misuse. In a country like Bangladesh, where favouritism runs deep, ensuring fair distribution is extremely difficult.
Shamim Jahangir: How do you evaluate the interim government’s one-year performance in power and energy?
Shahnaj Begum: The government under Dr. Fouzul Kabir Khan has taken several decisions, but its overall policy direction remains undefined. Bangladesh once had a Power Sector Master Plan, later replaced by the Integrated Energy and Power Master Plan (IEPMP) under JICA. Its future, however, remains uncertain pending review by the national research council.
Fifty-four years after independence, Bangladesh still lacks a coherent energy policy framework. Transparency remains more a slogan than a practice. The interim government continues LNG imports like its predecessor, necessary in the short term but unsustainable in the long run.
Shamim Jahangir: Why is there no projected growth in grid power until 2030?
Shahnaj Begum: Because earlier projections were based on inflated GDP growth targets — 10%, which never materialised. The actual growth was around 6.5%, yet planning assumed much higher demand. As a result, we now have overcapacity without matching consumption, leading to wasted public funds.
Shamim Jahangir: Was the JICA-led Integrated Master Plan designed with bias?
Shahnaj Begum: It appears so. For instance, Petrobangla committed to supplying gas for new power plants without identifying actual sources. That led to idle projects like the Rupsha and Meghnaghat plants, which are now costing the government hundreds of crores in subsidies each month.
Shamim Jahangir: In your view, what’s the way forward?
Shahnaj Begum: We must base our plans on accurate data, strengthen institutional integrity, and build political consensus. Transparency should not just be preached, it must be practiced. The energy sector is the backbone of the economy, and rebuilding public trust is the first step toward genuine reform.
Shamim Jahangir: We appreciate your time with Just Energy News.
Shahnaj Begum: Thank you.