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:
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 (email@example.com).
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