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July 06, 2026

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Energy minister explains decision to scrap prepaid gas meter projects

The cancelled projects funded by the World Bank and ADB are described as “debt traps”

Minister defends scrapping gas meter projects

Staff Correspondent

bdnews24.com

Published : 06 Jul 2026, 03:30 PM

Updated : 06 Jul 2026, 03:30 PM

Energy Minister Iqbal Hassan Mahmood Tuku has voiced frustration over Bangladesh’s gas situation while defending the government's decision to scrap three World Bank and Asian Development Bank (ADB)-funded gas prepaid meter projects.

He expressed concerns over rising debt pressure while speaking at an event organised by the Consumers Association of Bangladesh (CAB) at Dhaka Reporters Unity on Monday.

“There is no pipeline gas, no new drilling or production, yet we are being pushed into taking loans worth billions of taka for prepaid meters -- it is like buying a whip without having a horse,” he said.

He criticised projects undertaken by the previous Awami League government, saying none had served the public interest and were all designed for personal gain.

The past administration, Tuku said, had wrecked the country's energy sector, leaving the public bleeding out.

"Every person is carrying a debt burden of around Tk 30 trillion," he said. "I don't want to create another debt trap. This project has been scrapped entirely in the public interest."

Responding to public complaints over higher electricity bills, the minister questioned sections of the media for reporting without verifying the facts on the ground.

He said the revised electricity tariffs had taken effect in June and many consumers had moved into higher tariff slabs because of increased summer electricity use.

"The government does not get electricity for free; we have to buy it. Responsibility does not rest only with the minister or the committee. It belongs to everyone."

Referring to what he described as longstanding administrative problems, Tuku recalled that officials had once come to disconnect electricity at his house because of errors in the ledger system before the mistake was corrected.

"These historic problems cannot be removed overnight, but we are doing everything possible."

Outlining his vision for power sector reform, Tuku said electricity generation should remain under government control because private producers make price regulation more difficult.

"If the government generates electricity, it can operate on a break-even basis. But retail business or distribution is not the government's job. If distribution were privatised, our losses would fall and closer monitoring could be ensured."

Turning to renewable energy, the minister said the prime minister had directed that the solar sector should be fully private, with the government purchasing the electricity produced.

"Our target is to generate 1,000MW of solar power over the next five years, which will significantly reduce pressure from energy imports."

He said private operators could also manage rooftop solar systems and collect payments from homeowners through net metering, much like cable television providers.

Tuku added that solar power generation costs should not exceed Tk 6 per unit.

Highlighting the government's firm stance on protecting farmland, the minister said crop land would never be sacrificed for solar plants or industrial zones.

He cited Sirajganj's 59MW solar power station, built on land reclaimed from the Jamuna River without taking any farmer's land.

"On top of that, vegetables are now being successfully grown beneath the solar panels. We are targeting unused fallow land belonging to the railways, roads or the water board for solar projects," he said.

Energy expert M Shamsul Alam presented the keynote paper titled "National Energy Development Strategy” at the dialogue.

The paper outlined "irregularities and corruption" during the previous Awami League government's tenure, and offered a set of recommendations to reduce the power and energy sector's reliance on imports and make it more responsive to public needs.

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  • Bangladesh

  • prepaid meters

  • Iqbal Hassan Mahmood

  • Energy

  • gas

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