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Cancel power, energy deals made during AL era: National oil-gas committee

Oct 26, 2024

| TBS Report | The Business Standard

The National Committee for the Protection of Oil, Gas, Minerals, Power and Ports has demanded the cancellation of all power and energy deals made during the Sheikh Hasina-led regime and asked that potential contracts should be reviewed.


The organisation presented a six-point demand during a discussion meeting, "Energy and Power Sector: Current Situation and What Needs to be Done", at Dhaka Reporters Unity auditorium in the capital today (26 October).


It stated that irregularities and contracts related to the mega power projects, including those at Rooppur, Rampal, Matarbari, and Payra, as well as developments in electricity, liquid fuel, gas, coal, and renewable energy projects, should be reviewed and measures taken for cancellation or amendment.


The organisation said the Rampal power plant must be cancelled. After the Rampal power plant is operational, independent experts should assess the environmental damage, and the findings must be made public, it said.


It said due to the "exploitative costs" of importing electricity from Adani's coal-based power project and the fact that Bangladeshi electricity consumers are deprived of energy justice, all contracts related to the power plant signed with Adani should be re-evaluated and cancelled, if necessary.


The organisation said there must be a protest against India's unilateral decision to construct 12 hydropower projects in the upper Brahmaputra basin, and necessary diplomatic measures should be taken to prevent their implementation.


It said the approval for the Katihar-Parbatipur-Baranagar transmission line project should be immediately cancelled to prevent India from using it to transport hydropower generated by damming the Brahmaputra River.


The organisation said to protect national interests, swift short-term measures must be taken to reduce the prices of electricity and fuel.


It said the BPC should be instructed to submit a proposal to the Bangladesh Energy Regulatory Commission to verify whether the existing prices of petroleum products are fair and rational.


Subsidies for unjust capacity charges to privately-owned power plants must be stopped to reduce the pressure of price increase on the public, said the organisation.


It said all energy crimes organised by the previous autocratic government must be prosecuted. Steps should be taken to expedite the resolution of all cases filed in the public interest, the organisation said, adding that justice must be ensured for all energy offenders, including ministers, state ministers, secretaries, consultants, and advisers.


It also said the capacity to reform institutions in the electricity and energy sectors must be developed, and foreign consultancy for planning should be halted. Planning for the electricity and energy sector should be undertaken by individuals with various local experiences in the country, it said.


Energy expert Shamsul Islam said while the import cost of coal is around $100 per tonne, the Power Development Board is purchasing coal at $185 per tonne. "By introducing transparency in this matter, nearly Tk6,000 crore could be saved annually."


He said that the expenditure in the electricity sector needs to be reduced by Tk40,000 crore each year.


"Forty power plants in the country are not generating electricity by using furnace oil, yet these institutions are receiving thousands of crores of taka under the guise of capacity charges. The government has not needed electricity from these entities. Cancelling these contracts could reduce expenses by Tk20,000 crore," Shamsul Islam said.


Professor Anu Muhammad, member secretary of the committee, said full ownership of the country's resources must be ensured. "Gas exploration should be conducted based on national capacity."


Professor MM Akash said, "We need to consider how much potential this government has."


The special law of the Awami League regarding the electricity sector, enacted in 2010 and known as the indemnity law, should be repealed, he said, adding that all contracts made under this law must be cancelled, as they were primarily established for the purpose of corruption.


"Peter Haas wants to establish two LNG ports: one in Cox's Bazar and the other in Payra. Every contract must be made public, and we cannot hand over any of our owned assets to foreigners, whether it be gas or any other resource," said Prof Akash.


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