Three environmental organisations on Saturday urged the government to scrap the proposed 42.5MW North Dhaka Waste-to-Energy (WtE) project, alleging that it would impose a heavy financial burden, worsen air pollution and undermine Bangladesh’s transition to renewable energy.
At a press conference in the capital, the Coastal Livelihood and Environmental Action Network (CLEAN), the Bangladesh Working Group on Ecology and Development (BWGED) and the Bangladesh Environmental Lawyers Association (BELA) described the project as one of the country’s costliest and most environmentally damaging power initiatives.
The organisations alleged that the Tk 57.45 billion (US$467 million) project would generate only 42.5MW of electricity while exposing the government to annual capacity payments of about Tk 7.24 billion.
They also criticised a reported move to relax environmental standards, saying it would favour the project’s Chinese contractor, China Machinery Engineering Corporation (CMEC), over public interest.
The project was approved in 2020 under the Special Act without competitive bidding, and an implementation agreement was signed in 2021 between the Power Division, Dhaka North City Corporation (DNCC) and CMEC. However, construction has yet to begin more than four and a half years later.
According to the organisations, electricity generated by the plant would cost about Tk 26.79 per unit—around two and a half times higher than utility-scale solar power. They claimed the tariff could rise significantly if the plant operates below its projected capacity, while the government would still be required to pay capacity charges.
CLEAN Chief Executive Hasan Mehedi said the same investment could instead finance around 425MW of solar power capable of producing nearly 688 million units of clean electricity annually without fuel imports or harmful emissions.
The groups also raised questions over the project’s financing. They said the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) are each providing US$100 million in loans, while CMEC is investing US$157 million. However, they alleged that the source of the remaining US$110 million has not been publicly disclosed.
The organisations further argued that the project’s waste supply agreement could discourage recycling. Under the contract, they said, DNCC must supply 3,000 tonnes of municipal waste every day or pay penalties for any shortfall. As the city currently generates about 2,750 tonnes of waste daily, they said the arrangement could create incentives for higher waste generation instead of waste reduction and recycling.
Environmental and health risks were another major concern raised at the briefing. The groups claimed the plant would emit more than 411,000 tonnes of carbon dioxide annually, along with ash, fine particulate matter and toxic substances, including heavy metals, dioxins and furans, which they said pose serious health risks.
Barish Hasan Chowdhury, policy coordinator at BELA, questioned continued financial support for the project by international development banks, saying Bangladesh’s renewable energy commitments should be reflected in future investment decisions.
He also alleged that public consultation requirements under the AIIB’s environmental and social framework were not properly followed, with many affected residents reportedly excluded before project approval.
The organisations further criticised a reported proposal to reduce the mandatory waste incineration temperature from 1,000 degrees Celsius to 850 degrees Celsius, alleging that the change was intended to accommodate CMEC’s technical limitations.
Hasan Mehedi and NGO Forum on ADB Executive Director Rayan Hasan said weakening environmental standards to protect the commercial interests of a single company would run counter to the public interest.
The organisations called on the government to cancel the project, expand recycling and composting programmes, rehabilitate affected waste pickers, ensure fair compensation for displaced landowners and redirect international financing towards renewable energy and sustainable waste management initiatives.