Adani Power deal major financial burden, Summit emerges as ‘power monster’, says review committee

A 25-year power purchase agreement with India’s Adani Power has become a major financial burden for Bangladesh, while Summit Group has emerged as a “power monster” in the energy sector with the support of the ousted Awami League government, a national review committee has said.

The observations were made in the final report of the national committee formed by the interim government to review power sector contracts signed under special laws during the Awami League’s time in office.

The report also said alongside Summit, contracts with Chattogram-based S Alam Group’s “SS Power” have forced the Bangladesh Power Development Board (BPDB) to pay large amounts in capacity charges every year despite not generating electricity.

The findings were presented at a media briefing at the capital’s Bidyut Bhaban on Sunday.

The committee submitted its final report to Power and Energy Advisor Fouzul Kabir Khan on Tuesday.

The committee said electricity prices have risen due to the Adani deal, creating heavy financial pressure on the government.

Committee member Moshtaq Hossain Khan, a professor at the Faculty of Law and Social Sciences at the University of London, said they had found “serious irregularities and evidence of corruption” in the Adani contract.

He said Adani should be informed of the findings and asked for an explanation, after which a prompt decision should be taken on arbitration proceedings in Singapore over to the contract.

He said if there is a delay, the case will lose legitimacy, adding that experts in London had described the evidence as “rare in international-level corruption cases”.

Responding to a question, he said information had been found on illegal transactions involving seven to eight individuals linked to the contract, with financial dealings amounting to several million dollars.

He said the information, along with related travel documents, has been handed over to the Anti-Corruption Commission (ACC), which has already begun investigating the matter.