Irregularities worth Tk 29.26 billion found in six Power Development Board projects: TIB

Irregularities amounting to Tk 29.26 billion have been identified in six solar power projects, government and IPP, of the Bangladesh Power Development Board between October 2010 and November 2025.

Transparency International Bangladesh disclosed the findings at a press briefing at its office in Dhanmondi in the capital on Wednesday, December 24.

The research report titled Power generation from renewable energy in Bangladesh: Governance challenges and ways forward was presented by TIB officials Newazul Mowla and Ashna Islam. TIB Executive Director Dr Iftekharuzzaman was also present at the briefing.

Highlighting irregularities within the Bangladesh Power Development Board, the report said excessive project costs had been estimated in six solar projects, both government-run and IPP-based.

According to BPDB calculations, the average cost of generating one megawatt of solar power is Tk 80 million. However, in the six projects reviewed, the estimated average cost per megawatt stood at Tk 138 million, more than one and a half times higher. As a result, an excess expenditure of Tk 29.26 billion was incurred in these projects.

An analysis showed that while Tk 40.43 billion was required for the six projects, actual expenditure reached Tk 69.70 billion.

The TIB report further noted that in some cases, even when government solar projects were set up on state-owned land, without any need for land acquisition or leasing, the cost per megawatt was shown as Tk 148 million, significantly higher than comparable solar projects in the country.

The study also found corruption worth Tk 2.49 billion in just land purchases and compensation payments across five power sector projects covered by the research.

Only 3.3 percent of foreign investment in the power sector has been directed towards renewable energy. The report said letters of intent for renewable energy projects backed by foreign investment were cancelled due to procedural ambiguities.

Compared to fossil fuels, tax incentives, customs duty exemptions, VAT waivers and insurance benefits for renewable energy projects remain insufficient, the report added. A significant investment gap in the renewable energy sector was also highlighted.

Researchers said the interim government had cancelled letters of intent for 31 unsolicited renewable energy projects with a combined capacity of 3,287 megawatts, involving billions of dollars in foreign investment. Among these, 15 projects already had non-refundable investments, including land purchases and tax payments.

Four projects involved direct foreign company investment, with two fully owned by foreign firms, creating a crisis of confidence among investors.

New tenders were floated under 55 packages for renewable energy projects. Of these, only one bid was received in 22 packages, while no bids were submitted for 13 packages. The absence of state guarantees in the new tenders has limited foreign investor participation.

TIB said that although Bangladesh Bank has a dedicated scheme for renewable energy under its green financing programme, actual utilisation remains very limited due to lengthy and complex application processes.

The research noted that despite the potential to install around 500 megawatts of floating solar power using the infrastructure and large area of the country’s only hydroelectric power plant, bureaucratic complications and lack of investment have prevented implementation.

International financing institutions such as the Asian Development Bank and the World Bank are now more interested in investing in private sector renewable energy projects rather than public sector initiatives. As a result, the government’s role has become limited. Although renewable energy implementation plans increasingly centre on private sector and IPP-based initiatives, the government has failed to design attractive incentive packages to draw sufficient investment.

TIB also pointed out that no financing roadmap has been prepared to achieve the targets set in the Renewable Energy Policy 2025.

According to the organisation, up to USD 980 million, equivalent to Tk 115.64 billion, will be required annually until 2030. From 2030 to 2041, the annual requirement will rise to a maximum of USD 1.46 billion, equivalent to Tk 172.80 billion. However, the government still lacks a specific and time-bound financing plan.