Irregularities amounting to over Tk 29.27 billion were committed in six government and independent power producer (IPP) solar projects undertaken by the Bangladesh Power Development Board (BPDB) between 2012 and 2025, according to a study conducted by Transparency International Bangladesh (TIB).
Citing BPDB accounts, TIB in the study report said, "An average of Tk 80 million per megawatt is required for solar power generation, but the six projects covered by the study were estimated to cost an average of Tk 138 million per MW, which was 1.5 times higher. These projects incurred a total excess expenditure of Tk 29.27 billion over the required amount".
TIB disclosed findings of the study at a press briefing held at its Dhanmondi office in Dhaka on Wednesday.
Md Newazul Moula, coordinator, Energy Governance, TIB, and Ashna Islam, assistant coordinator, Energy Governance, TIB, presented the study findings at the briefing.
Speaking on the occassion, Dr Iftekharuzzaman, executive director of TIB, said policy inconsistencies are visible in the master plan for Bangladesh's power sector.
Less priority given to the renewable energy sector, over-reliance on fossil fuels, and lack of transparency in project implementation are creating major challenges for long-term development. If this situation continues, it will be difficult to meet the 2050 renewable energy target.
The country's current dependence on fossil fuels is about 95 per cent, while its dependence on renewable energy is not more than 4.0 per cent. In other words, the renewable energy sector has always been neglected, Dr Iftekharuzzaman added.
The research report noted that even in some cases, despite the government projects being set up on its own land where there is no issue of land acquisition or lease, the cost of setting up per megawatt has been shown to be Tk 140.8 million ($1.81 million), which is significantly more expensive than other solar projects in the country.
Besides, a total corruption of Tk2.49 billion has been estimated in the case of land acquisition and compensation payment in five IPP solar projects, it said.
Despite national commitments to clean energy, the survey found that, despite attracting nearly $30 billion in foreign investment in the power sector between 2010 and 2023, 96.7 per cent went to fossil fuel-based projects, while only 3.3 per cent was invested in renewable energy.
TIB also found that the Environmental Clearance Certificate (ECC) was initially issued under the Red Category but was later reclassified as Orange Category.
Additionally, it is alleged that environmental clearances were granted by the Department of Environment for project construction in areas adjacent to embankments, despite non-compliance with EIA approval conditions and the absence of a no-objection certificate from the Water Development Board.
The interim government canceled the 'Letter of Intent (LOI)' of 31 unsolicited renewable energy projects with a capacity of 3,287 MW with foreign investment of about $6 billion, although in 15 of these projects, non-refundable investments including land purchase, tax payment had already been made and in four projects there was direct investment from foreign company, of which two were 100 per cent owned by foreign companies, according to the report.
These incidents have created a crisis of confidence among investors. Later, tenders were invited for 55 new projects, but foreign investors did not show interest due to the lack of a 'state guarantee', it stated.
TIB also pointed out that compared to fossil fuels, renewable energy projects receive substantially fewer incentives, including tax benefits, customs duty waivers, VAT exemptions and insurance incentives, creating an uneven policy environment.
TIB observed that renewable energy receives comparatively lower policy priority than fossil fuels, and even where policies and legal provisions exist for its transition and expansion, weaknesses remain in the policy framework.
Gaps in institutional capacity, failure of relevant state agencies and stakeholders to perform their roles effectively, and various deficiencies in investment and financing present significant governance challenges, which collectively pose major obstacles to the just and timely transition to renewable energy in line with set targets, it added.
To ensure transparency and accountability in the sector, TIB gave a 15-point recommendation.
Transparency International Bangladesh (TIB) recommended scrapping the Integrated Energy and Power Master Plan (IEPMP-2023) and preparing a new master plan focused on reducing dependence on fossil fuels and increasing the share of renewable energy in the energy mix.
TIB also urged all existing policies, including the Renewable Energy Policy 2025, to set a unified target for renewable electricity generation. It further recommended prioritising renewable energy in BPDB operations and ensuring transparency in project approvals and contract execution, free from conflicts of interest.
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