The Transparency International Bangladesh (TIB) has called for the reconsideration and, if necessary, cancellation of the opaque and discriminatory contract with Adani Group which is accused of share and account fraud.

In a statement on Friday (17 February), TIB expressed its deep concern that Bangladesh's power sector could become hostage to the controversial company if the agreement to purchase 1,600 MW of electricity from India's Adani Power is executed by the Bangladesh Power Development Board (BPDB).

"For the sake of national interest, especially considering that the final burden of the agreement will be borne by the people of the country," TIB suggested a thorough analysis of the terms of the agreement involving experts in the relevant sectors, formation of amendments where applicable and termination of the agreement if necessary.

According to news published in the national and international media, the electricity generated from the Adani power plant located in Godda, Jharkhand, will cost almost three times more than the electricity generated in the country. 

Also, the power purchase agreement (PPA) has the obligation to buy power from Adani Power at this high price, the statement read.

TIB Executive Director Dr Iftekharuzzaman said, "This contract with Adani Power of Adani Group, which is accused of share market and accounting manipulation and fraud, has been considered unequal and opaque in a reliable international analysis and unprecedentedly discriminatory for Bangladesh."

"It seems that the agreement ignores the interests of Bangladesh and favours the interests of the Adani group in such a way that the electricity sector of Bangladesh can become a hostage in the hands of this company, the burden of which will have to be borne by the people of this country," he added.

Pointing to information published by reliable international sources including Australia-based Adani Watch, the TIB executive director said, "The coal used in the Godda power plant will come from disputed mines owned by Adani in Indonesia and Australia and by Adani ships, which will be unloaded at Adani-owned ports and transport will be done by Adani owned railways. Again the generated electricity will be transported in the transmission line built by Adani."

"It is also known that Bangladesh will have to bear the cost of this entire process including energy costs, which is unprecedented in the experience of the global power sector. As a result, electricity supplied through this project will be charged at an unusually high rate compared to electricity from any other supplier in the country," he also said.

The statement also noted that Adani's Godda project will have to pay capacity charges at an unacceptably high rate compared to any other project undertaken by domestic and foreign ventures.

Iftekharuzzaman urged BPDB and the concerned policy-makers of the government to revise the terms and conditions of the agreement on an urgent basis after a thorough objective analysis involving national and internationally renowned experts and if necessary, cancel the agreement by giving the highest priority to the interests of the country and the people.