Bangladesh review says non-competitive power deals add billions to electricity costs

A government-commissioned review says Bangladesh’s long-term electricity contracts signed without competition are adding billions of dollars a year to power costs, squeezing households and threatening industrial competitiveness.

The National Review Committee said “overpricing is a deliberate outcome of contract design,” alleging “systematic collusion between politicians, bureaucrats and businesses.”

The report, titled “Bangladesh’s Power Generation: Trapped Costly Contracts: Governance Failures and the Mechanics of Rent Extraction,” highlighted an Adani Power import deal as a striking case of “rent extraction,” estimating Bangladesh pays about 50% above benchmark prices, or roughly 4 to 5 U.S. cents per kilowatt hour. Another review body urged scrapping the Adani agreement, saying Bangladesh pays an extra $400 million to $500 million annually.

Adani said it was not approached and supplies “competitively priced” power.

The five-member National Review Committee was led by former High Court judge Justice Moyeenul Islam Chowdhury.

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