The interim government of Bangladesh has halted all negotiations, selections, and procurement processes for power and energy projects as part of sweeping reforms following the repeal of the controversial Quick Enhancement of Electricity and Energy Supply (Special Provision) Act of 2010.
Muhammad Fouzul Kabir Khan, the newly appointed Adviser for Power and Energy, Road Transport, and Bridges, announced the decision on Sunday during his first day in office.
Khan, addressing the media at the Secretariat, stated that while ongoing projects under the now-defunct law would continue, their terms and conditions would undergo a thorough review.
The Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, often criticized as the ‘black law’ within the energy sector, was originally enacted in 2010 to expedite energy projects in response to the country’s acute power shortages.
The law, which allowed the government to bypass standard procurement procedures and public scrutiny, has been extended multiple times, most recently in 2021, pushing its tenure until 2026.
Khan hinted at a more transparent and accountable approach, noting that the council of advisers would scrutinize the law’s pros and cons in detail.
The decision to halt future activities under this special provision followed an extensive meeting with top officials from the Energy and Mineral Resources Division (EMRD) and the Power Division under the Ministry of Power, Energy, and Mineral Resources (MPEMR).
In addition to repealing the special law, the meeting also decided to suspend the implementation of a law that permitted the government to adjust power and natural gas tariffs through executive orders, bypassing the Bangladesh Energy Regulatory Commission (BERC).
The previous government had amended the BERC Act under Article 34 (Ka), allowing for arbitrary tariff adjustments without public hearings or regulatory oversight.
With the repeal of this amendment, the interim government plans to restore BERC’s authority over future power and natural gas tariff adjustments, ensuring that these decisions will once again be subject to public hearings and regulatory processes.
The previous government had frequently used executive orders to raise power and natural gas tariffs under the amended law, a practice that had drawn criticism for its lack of transparency.
During the meeting with EMRD officials, Khan emphasized the need to evaluate the performance of power and energy officials using objective indicators and stressed the importance of combating corruption within the sector.
Khan also paid tribute to the martyrs of the recent student-led mass movement, emphasizing the need to prioritize innovative ideas from the youth. He called for cost-cutting measures across all sectors to alleviate the country’s current economic stress and directed officials to adopt competitive tendering processes for future power and energy projects.
