The interim government’s high-powered national committee tasked with reviewing power purchase agreements (PPAs) signed during the previous Awami League administration has submitted its initial report to the Ministry of Power and Energy, revealing extensive irregularities and governance failures in the sector.
The committee, formed on September 5, 2024, is led by Justice Moinul Islam.
It includes Dr. Shahdeen Malik, noted jurist; Prof. Mushtaq Khan, University of London economist; and Dr. Zahid Hossain, an internationally recognised economist.
The panel was created to ensure neutrality and a thorough, non-political review of PPA contracts signed with independent power producers (IPPs).
At a press briefing held at the Power and Energy Ministry, Justice Moinul Islam said the work was “intricate, cumbersome, and highly technical,” requiring detailed scrutiny of complex contractual and financial frameworks.
“This is why the committee took over a year to submit its initial report, though members worked constantly to ensure accuracy and thoroughness,” he said.
According to Justice Moinul, the preliminary findings expose massive fraud, irregularities, and illegalities in PPA execution. The report also includes recommendations for reforming the ailing power sector.
The initial reports, titled “Basic Governance Failure and Review of Anomalies in the Approval Process on Adani”, are described as interim, with the final report expected by mid-January 2026. The contents remain classified, pending a disclosure decision by the ministry.
Government praises committee’s independence
Power and Energy Adviser Dr. Muhammad Fauzul Kabir Khan commended the committee’s work, describing it as “a tremendous effort by highly qualified experts.”
“The committee’s independence and expertise are beyond question,” he said, adding that the final report will contain detailed recommendations for sector-wide reform.
He also noted that the interim government had earlier suspended the controversial 2010 Power Law, which governed many of the deals under review, following a High Court ruling that declared some of its sections unconstitutional.
The committee’s formation, he said, was part of a broader effort to ensure transparency and accountability in contracts signed under the previous regime.
Committee members Prof. Mushtaq Khan, Dr. Zahid Hossain, and Dr. Shahdeen Malik were present at the briefing, along with senior ministry officials.
‘Sovereign contracts but deeply flawed’
Speaking at the briefing, Prof. Mushtaq Khan termed the power deals sovereign contracts under international law, noting that unilateral cancellation could invite heavy penalties.
“You cannot easily revoke these deals. If you cancel them, the international court will impose a heavy fine,” he said.
“We took much time to scrutinise them, identifying both procedural flaws and deviations. The interim report has not included all findings; some issues are still under review. Within a month, you will see more evidence of corruption – it is intolerable.”
Prof. Khan said corruption and mismanagement had inflated electricity prices in Bangladesh, making them about 25% higher than in neighbouring countries.
“If subsidies are withdrawn, power prices could rise by 40%,” he warned. “Our industries will not be able to compete. We must address corruption and ensure this is never repeated.”
Tracing the roots of corruption
According to Prof. Khan, many administrative officials deviated from procurement rules under instructions from higher authorities, while others were found directly complicit.
“Consumers and taxpayers are now paying the price. Those responsible took the money and left the country, leaving behind high debts and inflated power costs,” he said.
“We are gathering evidence and will ensure that this time, they are not spared. It is a difficult task – we need everyone’s support.”
He confirmed that a writ petition has been filed with the High Court challenging alleged corruption in the Adani Power Limited deal and the government’s inaction on it.
“The court directed the Anti-Corruption Commission and other authorities to investigate and submit a report within 60 days. We are assisting the court, and within one month, you will see strong evidence of this corruption,” Prof. Khan added.
“Once evidence collection is complete, action will be taken against Adani and other major power producers under both national and international law,” he said.
Balancing legal risks and reform
Responding to questions from journalists, Prof. Khan said the committee would advise the government to pursue legal action once at least 80% of the evidence was secured.
“We cannot act on just 30% proof. If we move prematurely and lose, the consequences could be severe,” he cautioned.
Dr. Shahdeen Malik echoed that sentiment, warning of the potential financial fallout of cancelling international contracts.
“Suppose we scrap the deals on what we consider sufficient grounds. The affected companies may take the government to international arbitration, demanding billions in compensation,” he said.
“If we lose, the government could face $3 billion in claims or even 10-20 times more in demurrage and profit losses.”
The committee’s final report, expected early next year, is anticipated to provide a roadmap for legal and institutional reforms aimed at ensuring transparency and preventing future misuse of sovereign power agreements.
Dr. Zahid Hossain said that a thorough investigation is essential to hold the perpetrators accountable. He added, “If the deals can be renegotiated based on the findings, it may help reduce the $7.8 billion payment obligation projected for 2024.”
Responding to questions from reporters, he said, “We have scrutinized every power plant operating under the agreements in question. No facility was left unreviewed.”
However, Dr. Zahid declined to comment on the estimated extent of corruption in the power purchase deals, noting that the committee had not yet completed its analysis of that aspect.
When asked about possible compensation under the sovereign guarantees, Dr. Shahdeen Malik replied, “How can I determine the volume of demurrage incurred? The aggrieved company will claim an amount as compensation for termination of the agreement. We cannot comment on that at this stage.”
In response to another question about whether the Adani deal was being cancelled, the Power and Energy Adviser said, “There is a specific procedure that must be followed to terminate any agreement. A deal may be cancelled with or without cause, but if it is terminated without cause, a predetermined amount of compensation must be paid.”