The government has launched a review of all Independent Power Plant (IPP) agreements signed during the Awami League’s tenure, following growing allegations of irregularities and a recent court directive.
Speaking to reporters at the Secretariat on Tuesday, Finance Adviser Dr. Salehuddin Ahmed confirmed the move, saying it aligns with a Supreme Court order. “The government has approved a proposal to seek legal counsel and initiate discussions regarding the IPP agreements,” he said.
The development follows a recent High Court verdict that struck down two controversial indemnity provisions in the power sector law. These provisions had shielded government actions from judicial scrutiny and permitted unilateral decisions on power projects. While the court invalidated those clauses, it upheld previous actions made in good faith to avoid abrupt legal disruptions.
The court also instructed the government to ensure full operation of all state-owned power plants in the national interest.
Earlier in January, a government-formed review committee headed by Dr. Md. Kamrul Ahsan, Distinguished Professor at Green University of Bangladesh, began assessing power tariffs and contractual frameworks under the Quick Enhancement of Electricity and Energy Supply Act.
The committee initially examined 91 private power plants, with in-depth tariff review underway for 44 active ones. The remainder have completed their contractual terms. “We’ve identified loopholes in some agreements and will soon submit our findings to the adviser,” a committee member told Just Energy News on condition of anonymity.
The committee’s responsibilities include reviewing the amended Electricity and Energy Supply Special Act 2010, identifying inconsistencies, and recommending corrective actions. It is also assessing the viability of HFO-based power plants and proposing reforms under the same act.
“We are examining all Power Purchase Agreements signed during the Awami League regime between 2010 and August 2024,” confirmed an official from the Power Division.
One LNG Cargo to Arrive from Qatar in August
In a separate development, the government has approved the import of one cargo of liquefied natural gas (LNG) from Qatar to meet August energy demands at a cost of Tk 556.76 crore.
The decision was made at the Cabinet Committee on Government Purchase meeting chaired by Dr. Salehuddin Ahmed.
According to the Energy and Mineral Resources Division’s proposal, the LNG will be imported via international quotation under Public Procurement Rules 2008. Petrobangla had invited bids from 23 companies under its Master Sale and Purchase Agreement (MSPA). Of them, three firms submitted responsive bids.
QatarEnergy Trading LLC was awarded the contract after offering the lowest rate—$13.24 per MMBtu for 3.36 million MMBtu, totaling Tk 556.76 crore. The cargo, the 33rd spot shipment of its kind, is scheduled for delivery between August 4 and 5.
Foodgrain Stock at ‘Satisfactory’ Level
Dr. Salehuddin also reviewed the country’s food stock during the briefing, stating, “The stock of essential food grains—paddy, rice, and wheat—is currently at a satisfactory level.”
On commodity market volatility, he added, “Some fluctuation is normal. Prices won’t rise or fall simultaneously for all goods. But the government is vigilant and prepared.”