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Bangladesh Calls for International Legal Expertise in Adani Power Deal Investigation

A Bangladesh government-appointed committee investigating power generation contracts, including one with India’s Adani Power, has recommended that the interim government enlist a global legal firm to ensure a thorough and transparent review of agreements made during former Prime Minister Sheikh Hasina’s tenure.

The committee, led by Justice Moyeenul Islam Chowdhury, requires additional time to scrutinise both solicited and unsolicited contracts from 2009 to 2024, according to Reuters.

Several of the contracts under review have been controversial due to financial terms, environmental issues, and concerns about long-term sustainability.

Indian billionaire Gautam Adani, chairman of the Adani Group, has been indicted by US prosecutors for allegedly participating in a $265 million bribery scheme to influence Indian officials. These charges have sent ripples through his global business empire, valued at $142 billion and encompassing industries from ports to soybeans.

In addition to the Adani power deal, the committee is also examining a joint venture with a Chinese company that constructed a 1,320 MW coal-fired plant in Bangladesh, along with six other agreements with local business groups.

Last month, sources familiar with the matter informed Reuters that Bangladesh was reviewing its contract with Adani Power, which charges the country nearly 27% more than India’s other private producers.

Adani Power recently reduced its electricity supply to Bangladesh over an unpaid $800 million bill. A Bangladesh Power Development Board official stated that while paying such a large sum at once is not feasible, the government intends to significantly increase its monthly payments to Adani Power, starting with up to $100 million per month.

Adani Power operates a dedicated 1,600-megawatt (MW) plant in Jharkhand, India, supplying electricity to Bangladesh since 2022. Bangladesh has struggled to pay its bills due to expensive fuel and goods imports following Russia’s invasion of Ukraine in 2022. The political instability that led to Hasina’s ousting in August has further exacerbated these difficulties.

Frances Ibiefo

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Frances Ibiefo

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