TIB calls for cancellation of contract with Adani Group

Staff Reporter :
The Transparency International Bangladesh (TIB) has urged the government to review or cancel the electricity agreement signed with Indian company Adani Group as the conglomerate is allegedly involved in stock manipulation and accounting fraud.
“The country’s power sector may become a hostage in the hands of a controversial company if the unequal, ambiguous and discriminatory agreement signed with Group for purchasing 1600 MW electricity from Adani Power, which is allegedly involved in stock manipulation and accounting fraud,” TIB said.
Expressing concerns over the issue, TIB in a statement on Friday suggested the government to minutely analyse all conditions of the agreement by the experts.
Considering the national interest, especially the burden of this agreement will ultimately have to be shouldered by the people, the agreement requires amendment and if necessary it can be cancelled, TIB suggested.
According to the news published in national and international media, the price of the electricity generated by the Adani Godda Power Plant in Jharkhand will be about three times more compared with the locally generated electricity price.
Even, according to the Purchase Agreement, it is mandatory to buy the electricity with a high price from Adani Power.
“The agreement with PDB and Adani Group is unprecedentedly discriminatory against Bangladesh as per the internationally reliable analysis of the deal. It seems that the agreement has overlooked the interest of Bangladesh and has been given priority to the interests

 of Adani Group. As a result, the country’s electricity sector may become a pawn in the hands of the conglomerate. People have to bear the burden,” TIB Executive Director Dr Iftekharuzzaman said.
Drawing attention to the reliable reports published in different media including Australia based ‘Adani Watch’, he said, “The coals which will be used in Godda Power Plant will come from the controversial coal mines from Indonesia and Australia. The coal will be carried by Andia owned ship and unloaded at Adani owned ports and transported by Adani owned railway. The generated electricity will be transmitted through the Adani built transmission line.”
“It is also known that Bangladesh has to bear the expense of the whole process including electricity cost, which is unprecedented experience in the global electricity sector,” he said.
Consequently, Bangladesh has to pay abnormally high prices for the electricity compared with electricity from any other suppliers of the country, TIB said, adding, “The capacity charge will also be unacceptably high compared with any other projects.”
TIB has urged the PDB and the stakeholders of the government to immediately re-visit the agreement by the nationally and internationally recognised experts to amend the deal or if necessary cancel the agreement by giving highest priority to the people’s interest.
“There is no alternative to resist the visible conspiracy to turn Bangladesh into a sanctuary for expanding the fraud-based business of the Andani Group by taking PDB as well as the country’s people hostage,” TIB said.