B Mirror Report: The National Review Committee formed by the interim government to examine alleged irregularities in power purchase agreements (PPAs) signed during the Awami League-led administration has uncovered extensive evidence of corruption and procedural violations involving India’s Adani Power Ltd and several local private power producers.

According to the committee, the controversial contracts were awarded without any competitive tender process and were instead approved directly by the former prime minister’s office, resulting in excessively high tariffs that worked against Bangladesh’s financial interests.

Speaking at a recent press briefing, committee members said the 25-year PPA with Adani Power Ltd — under which electricity has been supplied to Bangladesh since 2023 — was particularly one-sided and riddled with graft. They noted that documentary proof, including bank records, financial transactions and overseas travel documents of senior officials, strongly supported their findings of irregularities.

The committee described the Adani power deal as a growing financial burden on the government, estimating that Bangladesh is currently paying between US$450 million and US$500 million in excess charges every year. Over the full contract period, the total additional cost could reach nearly US$10 billion.

It further pointed out that the PPAs, including the agreement with Adani, had been shielded under the now-repealed Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, which had effectively prevented legal scrutiny. The interim government repealed the law in November last year.

Given the findings, the committee recommended that the government either seek financial compensation from the Adani Group or terminate the agreement before it becomes permanently binding.

The report highlighted that the contract structure allowed Adani to profit across the entire supply chain  from coal mining in Australia to transportation and handling at Indian ports and the Godda power plant in Jharkhand  with all associated costs passed on to Bangladeshi consumers.

It also noted that the pricing mechanism heavily favoured the supplier, with tariffs significantly higher than electricity produced by Bangladesh’s own coal-based power plants. Additionally, the inclusion of Indian excise duties and taxes in the tariff charged to Bangladesh was deemed unjustified.

The committee further raised concerns over Adani’s later withdrawal of certain tax concessions for the Godda plant, which it said violated the original agreement terms.

Efforts by the Bangladesh Power Development Board (BPDB) to resolve disputes through direct negotiations were reportedly rejected by Adani, which instead proposed third-party mediation  a move seen as potentially leading to arbitration at the Singapore International Arbitration Centre.

Committee members warned that such legal proceedings could be prolonged and financially risky for Bangladesh, possibly involving heavy compensation claims.

The interim administration now faces a critical decision: whether to continue under what has been described as an unfair and costly agreement or to cancel the contract despite possible legal challenges.

The committee stressed that swift and decisive action is necessary to safeguard national interests and prevent further financial losses to the state and consumers.