Call for renegotiating Adani power deal using corruption evidence

Bangladesh has got evidence of corruption in the Adani deal, and the country should use that evidence as leverage to renegotiate or challenge the contract, said Mushtaq Khan, professor of SOAS, University of London.

Mushtaq was speaking at a roundtable titled "Navigating the Future of Power and Energy in Bangladesh," organised by Bengal Institute of Peace and Economic Development today (26 September).

Mushtaq, who served as a member of the national committee to review power and energy sector contracts formed under Bangladesh's interim government, said that arguing the electricity price is too high is not enough to alter a long-term contract. 

However, if credible evidence of corruption in the contract award process can be produced, it would open legal and negotiating avenues to cancel or revise the deal.

The power purchase agreements run for 25 years, and unilateral changes could trigger serious legal complications, he noted.

The expert claimed that he possesses information on financial transactions and individuals connected to the Adani deal, and that this information has already been shared with the government. 

He said the government could also hire an international investigative firm to gather further evidence, and should seek international legal advice to pursue renegotiation or legal action on contracts where strong evidence of corruption emerges.

He cautioned that rapidly scaling up solar power alone would not free Bangladesh from the financial burden of long-term deals like Adani's, since capacity charges must still be paid under 25-year sovereign contracts even if electricity is not drawn.

Citing Pakistan's experience, where falling grid demand due to solar expansion still left consumers paying high capacity charges on unused expensive plants, Mushtaq warned Bangladesh faces a similar risk.

Citing international consultants' estimates, he said Bangladesh may be overpaying Adani by roughly $6 billion.

Shafiqul Alam, IEEFA's lead energy analyst, highlighted Bangladesh's rising dependence on energy imports as a major vulnerability. He called for boosting domestic gas exploration, reducing reliance on LNG and diesel, and expanding renewables.

He also noted that more than 77 billion cubic feet of gas was lost in transmission and distribution in FY2024-25.

Buet professor Abdul Hasib Chowdhury said energy consumption in Bangladesh nearly tripled between 2000 and 2023, without the expected industrialisation to match, blaming corruption, inefficiency and poor planning. 

He estimated the Adani contract alone costs Bangladesh more than $500 million extra annually.

Participants called for integrated planning covering domestic gas exploration, renewable energy investment particularly solar and regional power imports, urging that reliable energy supply and policy certainty could help attract foreign investment, provided legacy contract liabilities are addressed with public interest prioritised.