Corrupt masterminds in Bangladesh's infrastructure and energy sectors have hijacked the national master plan, experts warned on Tuesday, saying mismanaged projects have quadrupled the country's debt while wasting 40 per cent of allocated funds.
The remarks came during a roundtable at the CIRDAP auditorium in the capital, where findings of a research project comparing the governance of power and infrastructure projects in Bangladesh and Sri Lanka were presented.
The study showed that Bangladesh's external debt has surged from US$ 23.5 billion in 2009 to approximately US$ 112 billion in 2025, a 377 per cent increase.
At the same time, one out of every Tk 5.0 of government revenue is now being spent on interest payments alone, even before the principal is repaid.
The roundtable, titled "The Governance of Power and Infrastructure Projects and the Implications for Public Debt Management", was organised by Change Initiative and the Strategic Climate Fund (SCF) committee under the World Bank's Climate Investment Fund (CIF), in partnership with SOAS University of London.
The research found that approximately 29 mega projects experienced an average cost increase of 70.3 per cent, while nearly US$5.0 billion in annual subsidies are required to keep overpriced power contracts affordable.
Analysing 42 mega projects implemented between 2009 and 2025 across transport, power, aviation, ports, and industrial zones, the study concluded that corruption-induced debt is increasingly a problem of governance.
"Energy is the lifeline of the economy. The power and energy master plan has been hijacked by the masterminds of corruption," said M Zakir Hossain Khan, co-founder and chief executive of Change Initiative, who moderated the roundtable.
Prof Mushtaq H Khan, head of the FCDO-mandated Anti-Corruption Evidence (ACE) Research Consortium at SOAS University of London, who presented the study findings, said there is no alternative to effective accountability and a zero-tolerance policy against corruption.
His research revealed that if mega-corruption in infrastructure projects and the cycle of overpricing or intentional poor planning continue, the government's debt-to-GDP ratio could reach 65-70 per cent by 2030.
The study highlighted that high-value power projects are particularly vulnerable to corruption and political collusion, as profit-making from overpriced projects encourages bribery over efficiency.
Interest payments are now consuming 20 per cent of the national revenue budget, while power sector fixed capacity charges are projected to reach Tk 380 billion in 2025, regardless of dispatch.
The study warned that Bangladesh is moving from a "moderate debt" position toward a solvency risk-trap.
"We do not only lack horizontal checks; we suffer from horizontal collusion. Rather than imposing more rules from the top, we must ensure economic competition that disrupts these collusive contracts," Prof Mushtaq said.
Owais Parray, country economic adviser at UNDP, added: "Rising debt reflects growing demands for infrastructure and social protection."
Md Jahangir Alam Molla, director of Bangladesh Power Development Board (BPDB), said reforms such as repealing special acts and introducing competitive bidding have reduced solar tariffs from 10 cents to 5.0-8.0 cents.
"By prioritising land availability and fuel diversification, we are transforming structural challenges into a sustainable, cost-effective energy future," he added.
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