Since taking office, the interim government has implemented a series of reforms in the country's electricity and energy sector within just two and a half months.
During this time, the controversial "Electricity and Energy Rapid Supply Act” enacted by the ousted Awami League government has been suspended. A decision has also been made to cancel projects completed under this act over the past two decades, and a national committee has been established to investigate any irregularities associated with these projects.
Furthermore, 43 electricity projects approved under this act will also be canceled.
The Bangladesh Energy Regulatory Commission (BERC) has been restored to its previous authority regarding the adjustment of electricity and energy prices.
Additionally, contracts with Summit and Excelerate Energy for the construction of an LNG terminal have been canceled.
The interim government has also terminated the contract process for the construction of the second unit of Eastern Refinery and the gas import agreement with H-Energy of India.
The government’s adviser on electricity, energy, and mineral resources, Muhammad Fouzul Kabir Khan, announced the cancellation of the "Electricity and Energy Rapid Supply Act” immediately after assuming his ministerial responsibilities.
At the same time, he restored the powers of the Bangladesh Energy Regulatory Commission (BERC).
The adviser revoked the executive order imposed by the Awami League that governed the setting of electricity and energy prices. With this restoration, BERC has regained its ability to adjust electricity and energy prices, allowing for price determination through public hearings as before.
In 2010, the Awami League government enacted the "Electricity and Energy Rapid Supply Act”. The then-government initiated the implementation of most major projects in this sector under this act. After several extensions, the act was set to remain in effect until 2026.
With the cancellation of this act, the processes for constructing the second unit of Eastern Refinery, two floating terminals of Summit and Excelerate Energy, and the gas import agreement with H-Energy from India have been canceled.
Additionally, the initiative by the Russian company Gazprom to drill gas wells in Bhola under the special act has also been revoked.
In an interview with Bangladesh Pratidin, Muhammad Fouzul Kabir Khan, adviser on electricity, energy, and mineral resources, emphasized, “Moving forward, nothing will progress in the electricity and energy sector without free competition. We will be calling for open tenders for this purpose. The projects that have been excluded were initiated under the special act of 2010, which lacked competitive bidding. We have decided that no projects initiated under this act will be rewarded during this government's term. As these projects were processed under the special act, we are unable to implement them.”
He added, “This government will not favor any specific individual or group. Competition will be open to everyone. I have provided the necessary instructions to all.”
He also stated, “Since taking office, I have implemented several measures, including the suspension of the special act of 2010 and the repeal of Section 34(k).”
The interim government has decided to cancel 43 electricity projects approved under this special act, which include 12 rental and quick rental power projects, as well as 31 renewable energy projects.
These projects collectively have a capacity of 3,063 megawatts.
The canceled rental and quick rental power plants have already been producing electricity under existing contracts.
Many of the renewable energy projects received expedited approvals, and the decision to cancel them was made due to their allocation under the special act.
Sources from the Ministry of Power, Energy, and Mineral Resources report that a five-member national committee has been formed to review whether any irregularities occurred in the contracts executed under the special act during the Awami League government's tenure.
Retired High Court Justice Moyeenul Islam Chowdhury has been appointed as the chairperson of this committee. The committee will audit whether the government’s interests were protected in these contracts.
Additionally, during the Awami League government's term, two secretaries from the ministry were appointed as chairpersons of various state-owned companies in the electricity and energy sector.
The interim government has decided to remove them from their positions as chairpersons of the boards.
It has been alleged that despite complaints against these companies, no action was taken because the secretaries themselves held the board chairmanship.
Bd-Pratidin English/ARK
