Aug 30, 2024
| Business | The Somoy News
This legislation, passed in 2010 and repeatedly extended, has allowed the government to award contracts for power plants, LNG terminals, and other infrastructure projects without open tenders, raising serious concerns about transparency and accountability. Consumer rights organisation, the Consumers Association of Bangladesh (CAB), is now preparing to challenge the law in the country's highest courts, seeking its annulment. Critics have long argued that the law, particularly its contentious Sections 9 and 10, has facilitated unchecked corruption by preventing any legal scrutiny of procurement processes within the energy sector.
Originally enacted during a period of acute energy shortages, the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act was intended to expedite the development of essential infrastructure. Initially, the law was designed to be in force for just two years. However, its provisions have been extended multiple times, with the most recent amendment in 2021 pushing the law's expiry date to 2026. Under this law, the government has been able to bypass competitive bidding processes, awarding lucrative contracts to preferred individuals and companies.
Over the past 15 years, this has resulted in the construction of over a hundred power plants, LNG terminals, and various other energy-related infrastructure projects, all without the transparency typically required in public procurement. Sections 9 and 10 of the law have been particularly controversial, as they effectively block any legal challenges to procurement decisions made under the Act. This has allowed companies to inflate costs and boost profits with little oversight, exacerbating concerns about corruption and lack of accountability in the energy sector.
Dr M Shamsul Alam, Energy Advisor to CAB, has been vocal in his criticism of the law, describing it as a legal cover for illegal activities. "If a law is made to facilitate illegal actions, then the creation of that law is itself illegal. We must bring those responsible for energy sector crimes to justice," Dr Alam said. With the recent change in government, CAB is now pushing to challenge the legality of the Act in the High Court. The organization hopes that the judiciary will take a stand against what it describes as a ‘people's enemy law’.
"The interim government has already suspended the effectiveness of this law, which cannot continue to exist in such a state. There can be no justification for retaining this law, and we believe it will ultimately be repealed," Dr Alam added. As CAB prepares to take its case to the courts, the fate of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act hangs in the balance. Should the court rule in favor of CAB, it could mark a significant shift in Bangladesh's approach to energy sector governance, potentially bringing an end to years of corruption and mismanagement.
News Link: CAB moves to challenge controversial energy law shielding corruption