A TIB study has identified irregularities involving an amount of around Tk 3.90 billion in three under-construction power plants.
The alleged corruption has taken place in the process of purchasing land, its acquisition and paying compensation to the land-owners, according to the study report released in a webinar on Wednesday.
The study report, titled "Coal and LNG Power Projects in Bangladesh: Good Governance Challenges and Way Forward", also revealed that local public representatives, land acquisition officials, non-government workers and power plant officials were involved in the corruption.
Power tariffs for these power plants were set at higher prices compared to similar power plant projects in neighbouring countries, said the Transparency International Bangladesh (TIB) study.
The study covered S Alam Group's 1,320 MW coal-fired Banshkhali power plant in Chattogram, Power China consortium's 350 MW coal-fired power plant in Barishal and state-owned Coal Power generation Company's 600 MW liquefied natural gas (LNG) based Matarbari power plant in Cox's Bazar.
"The TIB has maintained international standards and practices in carrying out the research," TIB executive director Dr Iftekharuzzaman told the webinar. "We have necessary documents in our hands to prove the corruption allegations."
According to the report, the highest corruption worth around Tk 2.55 billion took place during the acquisition of land and payment of compensation to the land owners for the Banshkhali power plant.
Around Tk 1.19 billion of corruption occurred during the purchase of land for the LNG-based power plant at Matarbari in Cox's Bazar, and corruption worth Tk 160 million in the acquisition of land for the coal-fired power plant in Barishal.
Bangladesh has acquired more land than required to build the coal-fired power plants as compared to the other countries, according to TIB.
The land needed for the Barishal power plant was 81 acres, but 310 acres were acquired. For the Banshkhali power plant, the required land was 304 acres, but 660 acres were taken. Matarbari power plant had a land requirement of 33 acres but 388 acres of land were acquired.
The price of electricity produced in coal-fired power plants in India, China, Pakistan, and Australia ranges between Tk 3.5 and Tk 5.0 per unit (1 kilowatt-hour).
However, in Bangladesh, the price is higher. The cost of electricity per unit in Barishal is estimated to be Tk 6.61 and in Banshkhali Tk 6.77, the TIB report said.
The TIB also found that some scopes were deliberately kept in the power purchase agreements (PPAs) to further increase the power tariffs of these power plants.
It alleged that the Power and Energy Speedy Supply (Special) Act was used to award the contracts of these power plants to certain companies in order to avert the competitive bidding.
It also suggested reducing dependency on coal and LNG-based power plants and putting emphasis on renewable energy sources to ensure zero carbon emissions.
In its seven-point recommendations, the TIB opined for an integrated energy and power master plan, focusing more on renewable energy.
It also demanded annulling the special law and not allowing any fossil fuel-based power plants after 2022.
The TIB demanded ensuring transparency and accountability in approving and awarding power projects, suspending all coal-fired power plants and taking punitive measures against the persons involved in corruption in power projects.
Azizjst@yahoo.com
