Bangladesh Adani Power Deal Review Raises Cost and Transparency Concerns
A recent Adani power deal review has raised serious concerns in Bangladesh. A government committee found the electricity deal costly and poorly structured. As a result, questions about transparency and fairness are growing.
The review came from Bangladesh’s National Review Committee. It examined power imports from Adani Power’s Godda plant in India. However, the findings have not yet been officially released.
Higher Power Prices Than Market Rates
The committee reported that Adani charged significantly higher prices. In fact, electricity costs stood nearly 40 percent above similar suppliers. Therefore, the deal placed a heavy financial burden on Bangladesh.
The report also highlighted sharp cost increases over time. Compared to other Indian power imports, this deal escalated the most. As a result, it became a major outlier in cross border energy purchases. Committee members linked this gap to contract design choices.
For example, pricing formulas favored the supplier over the buyer. Consequently, Bangladesh paid more than expected.
Procedural Issues and Contractual Concerns
Beyond pricing, the Adani power deal review flagged approval flaws. The committee found irregularities during the contract award process. However, details of these procedural gaps remain undisclosed. The review urged authorities to reassess existing electricity contracts. It recommended renegotiating financially damaging clauses. In addition, it stressed the need for better oversight going forward. Such steps, the panel said, could reduce future fiscal risks.
They could also improve trust in energy procurement decisions.
Tax and Fuel Cost Disputes
The report stated that Adani billed Indian corporate taxes to Bangladesh. This practice contradicts common international norms. Typically, companies pay taxes in their home country. In addition, the committee criticized the coal pricing used by the plant.
It described the fuel costs as excessively high. As a result, overall electricity prices increased further. According to the panel, Bangladesh pays nearly 50 percent more than necessary. This made the deal the most expensive among comparable agreements.
Adani Power Responds
Adani Power rejected the findings without full access to the report. The company said the committee never consulted it. Therefore, it declined to comment in detail.
The firm also claimed it continues supplying power despite unpaid dues. Other suppliers, it noted, have reduced or halted deliveries. Adani urged Bangladesh to clear outstanding payments quickly.
