While the average per capita electricity consumption in the world is 3,000 kilowatts, there is only 465 kilowatts in the country. But the country still faces frequent load-shedding and severe gas shortages; Production has been and continues to be affected by the lack of adequate electricity and gas, particularly in the industrial sector. The main reasons behind these problems were rampant corruption, approval of power plants to inexperienced companies with political considerations and inflated power and energy data like foreign exchange reserves and illegal connections with the collusion of officials.
In the white paper preparation committee's report on the economy made by the interim government during the 15 years of Sheikh Hasina's regime, such information about the power and energy sector emerged. The chief advisor of this report yesterday Sunday. Debapriya Bhattacharya, Head of the White Paper Drafting Committee, handed over to Muhammad Yunus.
According to the report, the Awami League government had been claiming significant achievements in the power sector during their tenure from 2009 to 2024. It claims to have increased production capacity from 5,719 MW to 32,000 MW. However, the country still faces frequent load-shedding and severe gas shortages. The report described the power and energy sector as a system designed for corruption.
According to the report, dependence on imports and economic challenges have led to acute fuel shortages. Apart from this, gas and electricity tariffs have been increased significantly, adding to the misery of the citizens. Although 99 percent of the population is covered by electricity, supply is erratic and unbelievably expensive, hampering the achievement of the Sustainable Development Goals (SDGs).
Bribery
According to the report, the most important allegation of corruption has arisen through the collection of commissions in the construction of power plants. Although there is no written evidence of such transactions, at least 10 percent of the project cost is believed to have been transacted as bribes. As such, at least $3 billion of the $30 billion investment in power generation since 2010 has changed hands as bribes.
Project on political considerations
According to the report, there was no full-time minister in the Ministry of Power, Energy and Mineral Resources (MPEMR). The former prime minister was in charge of the power ministry. Since the Prime Minister's Office (PMO) is the most powerful institution in the country, members of the government party, lobbyists, private businessmen and independent power producers became undisclosed partners. Almost all the projects in this sector have been sanctioned through political considerations and corruption ignoring due process. Energy Advisor, Home Minister, Power Department were the main medium and partner of these corruptions. From small solar power plants to large projects like Adani—every deal was approved by the PMO; Those who had no previous experience. While groups like Summit, Reliance and United Group were selected for gas plants above 350 MW, contracts for 1,320 MW coal plants were awarded to complete newcomers like S Alam Group.
Inflated information is stockpiled in trouble
According to the report, one of the reasons for the current gas-electricity problem is not giving correct information. The government also politicized power generation figures like money reserves. To mislead the public, the 2021 target of 24,000 MW was claimed, which included 3,000 MW of non-grid captive power and 450 MW of solar home systems. Later these are excluded from grid power.
7-8 percent theft in supply
Gas losses reach 10-12 percent during high transmission and distribution; 7-8 percent of this is reported to be stolen; Which is about 200 million CFDs. And the price of this gas is about 1 billion dollars as LNG import. Moving away from this confidence, the Committee recommended reforms in allocation and assessment policy as well as severance of illegal connections.
Doubts over the cost of nuclear power plants
The construction of two 1,200 MW VVER nuclear power plants in Rooppur started in 2016 after signing a contract worth 12.65 billion dollars with the Russian company Rosatom. With an initial cost of $550 million, the total cost will be $13.2 billion. Russia is lending $11.385 billion, with an interest rate of Libor plus 1.75 percent, with a maximum of 4 percent. However, many feel that the deal is overvalued and one of the most expensive plants.
The fourth and fifth units of the Kudankulam nuclear plant in Tamil Nadu, India are also being built by the same company. There they are taking the cost of 6.7215 billion dollars for 2 thousand megawatts. In addition, Rosatom is building a 4,800 MW plant in Egypt at an estimated cost of $30 billion.
3000 crore loss in LNG
According to the report, there is a loss of about 3 thousand crore rupees in LNG every year. Apart from this, the total arrears of the government in the power and energy sector till October of this year is about 50 thousand crores (4.16 billion dollars).
