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New Government Investigates Predecessor's Power Projects - International Law Office

International Law Office

Energy & Natural Resources - Bangladesh

New Government Investigates Predecessor's Power Projects

October 29 2001


Bangladesh's newly elected government is to review a number of power and infrastructure-related projects that were approved by the former government.

The government estimates that around $100 million could have been saved by its predecessor if certain public sector power projects had been properly negotiated. It is alleged that political bias played a significant role in the approval of some of the projects, and that a former government minister benefited directly from one or more of the deals.

The most exorbitant project was the 250 megawatt (mW) Barapukuria coal-fired power plant project, which was approved at a cost of $220 million. Experts have since estimated that such a project should not have cost more than $150 million.

Other projects that may come under review include:

  • the 120mW Siddirganj power plant project, which was approved at a cost of $54 million;
  • the second phase of the 90mW Fenchuganj power plant project, which was approved at a cost of $40 million; and
  • the 20mW Bhola power plant project, which was approved at a cost of $15 million.

It is also reported that the former government agreed the second phase of the Siddirganj power plant project (at a cost of $126 million) with the company that failed to complete the first phase within five years.

A number of the Dhaka Electric Supply Authority's projects may also be reviewed.


For further information on this topic please contact Azarul Haque at Legal Remedy by telephone (+880 2 955 0645) or by fax (+880 2 955 0645) or by email (legal@e-fsbd.net).



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