Bangladesh Power Panel Recommends Review of Adani's Power Contracts Amid Payment Delays

The national review committee of Bangladesh's Ministry of Power and Energy has recommended a thorough review of several major power contracts, including the one awarded to Adani Group for the Godda coal-fired power plant in Jharkhand, India. The committee’s resolution, issued on Sunday, comes amid growing concerns over the financial and legal implications of these deals, particularly with the Indian conglomerate's delayed payments and recent changes in policy that may affect its power supply commitments to Bangladesh.

The committee is currently reviewing seven major energy and power projects, among them the 1,234.4 MW Godda BIFPCL coal-fired plant, a wholly-owned subsidiary of Adani Power. This plant, which was initially set up exclusively to supply power to Bangladesh, has been embroiled in controversy after India altered a law allowing Adani Group to sell the Godda power domestically, raising doubts about Bangladesh’s access to a dedicated power supply.

In response to the ongoing issues, the committee, chaired by retired High Court judge Moyeenul Islam Chowdhury, has proposed that an international law firm and a global investigative agency assist in the review. The panel stressed the importance of conducting the review in line with international arbitration standards, ensuring that any potential renegotiation or cancellation of contracts would be legally sound and acceptable in international negotiations.

The recommendation follows Adani Group’s recent letter to the Bangladesh government regarding an unpaid $800 million power supply bill. While Bangladesh's state-run Power Development Board (PDB) has made a partial payment of $150 million, the payment has been delayed due to the country's ongoing dollar liquidity crisis. The committee's resolution highlights the need for more time to analyze all the contracts in question before making any final decisions.

The review also comes at a time when Adani Power is facing significant financial pressure due to the delayed payments and concerns over the future of its projects in Bangladesh. The Adani Group has expressed its expectation of receiving full payment soon, but the ongoing changes to energy laws and the growing scrutiny of these deals have raised questions about the long-term viability of its involvement in the region.

As the investigation continues, the Bangladesh government faces mounting pressure to resolve these issues while ensuring that energy contracts align with national interests and international legal frameworks.