Scrap capacity payments to questionable power projects
The long-running controversy over the unawarded Shantahar and Bagerhat power projects in Bangladesh highlights a troubling continuity in governance that undermines both transparency and public trust. What began as a competitive international tender in 2016 under the Awami League regime has now resurfaced under a new administration, still shackled by decisions rooted more in political expediency than merit.
Our newspaper on Monday reported that despite being the lowest evaluated responsive bidder, the XCEL-Energis consortium was excluded from final consideration without explanation. The Bangladesh Power Development Board (BPDB), having initially endorsed the bids, failed to forward them to the Cabinet Committee on Government Purchase as required by procurement rules. Critics rightly question whether the disqualification was less about technical flaws and more about the political lineage of one consortium principal – the son of a prominent critic of the then Prime Minister.
Such selective enforcement of rules flies in the face of the constitutional guarantees of equality before the law and fair administrative action More concerning is the fact that nearby projects were awarded without tender under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, often to politically connected entities, at significantly higher tariffs. This system of patronage and impunity has left taxpayers footing the bill for inflated capacity payments, while credible, competitive bids remain unheeded.
The Tk. 97.9 crore was spent on bid preparation and the Tk. 329 crore in lost potential earnings for the consortium are not merely business setbacks; they symbolise the broader failure of a public procurement system plagued by opacity and favouritism. At the outset, the government justified not awarding the projects by claiming there was no power demand in those two areas. However, it is now paying nearly 30 crore taka per month in combined capacity payments for two alternative projects that were awarded without tenders under questionable circumstances.
If the current government is serious about reform, it must break with the past. Upholding discredited decisions made under a previous regime only serves to entrench a culture of cronyism and legal defiance. The matter must be revisited with impartial scrutiny, and the rule of law must prevail.
This case is no longer just about two power plants. It is a test of whether Bangladesh can build a transparent and accountable procurement regime — one that rewards merit over loyalty and serves the public over private interests.