Bangladesh panel seeks global legal firm for power deals probe, including Adani

DHAKA (Reuters) - A Bangladesh government-appointed committee examining power generation contracts, including one with India’s Adani Power (NS:ADAN .NS), has urged the interim government to hire a global legal firm to ensure a thorough and transparent investigation into deals under former prime minister Sheikh Hasina’s regime.

The committee, led by Justice Moyeenul Islam Chowdhury, needs more time to analyse both solicited and unsolicited contracts from 2009 to 2024, a senior official with direct knowledge of the matter told Reuters on Monday.

"External expertise will be crucial for conducting a comprehensive investigation that could potentially lead to the renegotiation or cancellation of certain agreements in line with international arbitration standards," said the official.

Many of the reviewed contracts have sparked controversy due to their financial terms, environmental concerns, and doubts about long-term sustainability.

Indian billionaire Gautam Adani, the chairman of the Adani Group, has been indicted by U.S. prosecutors for his alleged involvement in a $265 million bribery scheme aimed at influencing Indian officials. The charges have sent shockwaves through his global business empire, valued at $142 billion and spanning industries from ports to soybeans.

Other than the Adani power deal, the committee is also reviewing a joint-venture deal with a Chinese company that built a 1,320 MW coal-fired plant in Bangladesh, and six other agreements with local business groups.

Last month, sources familiar with the matter told Reuters that Bangladesh was scrutinising its contract with Adani Power, as it was charging Bangladesh a rate nearly 27% higher than those of India's other private producers.

Adani Power recently reduced the electricity supply to Bangladesh over an unpaid $800 million power bill.

A Bangladesh Power Development Board official said that while paying such a large sum all at once is not feasible, the government plans to significantly increase its monthly payments to Adani Power, starting with up to $100 million per month.



Adani Power, which operates a dedicated 1,600-megawatt (MW) Godda plant in Jharkhand, India, has been supplying electricity to Bangladesh since 2022.

Bangladesh has been struggling to pay its bills due to costly fuel and goods imports since Russia invaded Ukraine in 2022. The political turmoil that led to the ouster of Hasina in August has also compounded its troubles.

Source: Investing.com