Power, energy sectors put on reform path after corruption cleanup: Adviser

Power, Energy and Mineral Resources Adviser Dr Muhammad Fouzul Kabir Khan on Tuesday said the interim government has dismantled the long-standing corrupt structure in Bangladesh’s power and energy sectors through legal and institutional reforms.

“We have undertaken comprehensive reform initiatives, leaving behind a transparent and sustainable roadmap for the future elected government,” he said while addressing a press conference at Bidyut Bhaban in Dhaka on the activities and achievements of the ministry during the interim government’s tenure.

Dr Fouzul Kabir Khan said the controversial Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010 had been repealed, ending a framework that allowed bypassing standard procurement processes.

He said the Bangladesh Energy Regulatory Commission (BERC) has been empowered to independently fix electricity and energy prices, noting that as a result, power tariffs were not increased over the past 16 to 17 months.

To investigate corruption and irregularities, the ministry formed two committees, he said. One is a national-level body to identify systemic corruption, while the other comprises judges and independent experts tasked with conducting investigations.

The adviser also said that a long-standing conflict of interest in the sector has also been addressed by cancelling the practice of appointing ministry secretaries as chairpersons of subordinate companies.

“No secretary will now serve as chairman of any company under the ministry,” he added.

Dr Fouzul Kabir Khan further said that several sector-specific policies were formulated during the interim period, with the Renewable Energy Policy-2025 and the Merchant Power Policy-2025 being among the most significant.

To address instability between the Rural Electricity Board and the Rural Electricity Association, he said a new rule has been drafted to balance authority between the entities and is currently under process for enactment.

He added that a committee led by an expert from Bangladesh University of Engineering and Technology (BUET) conducted a project-based analysis to verify allegations of high electricity tariffs.

On the energy front, the adviser said a substantial amount of foreign arrears had been cleared, which helped reduce additional premiums on oil and liquefied natural gas (LNG) imports.

He said the refinery ownership condition for oil imports by the Bangladesh Petroleum Corporation (BPC) was lifted, increasing competition and reducing import premiums by 35 per cent, resulting in savings of Tk1,500 crore over the past six months.

Dr Fouzul Kabir Khan again said Eastern Refinery Limited is being modernised at a cost of Tk31,057 crore.

“Once implemented, the refinery will be upgraded to Euro-5 and Euro-6 standards, significantly reducing environmental pollution,” he said.

On exploration activities, the adviser noted that both onshore and offshore gas exploration are time-consuming processes. A revised agreement for offshore gas exploration has been prepared for consideration by the next government.

Responding to questions on coal mining, he said no new coal mining projects were initiated due to strong public opposition over the past year and a half. However, feasibility studies have been prepared for future decision-making.

Regarding the Rooppur Nuclear Power Plant, Dr Fouzul Kabir Khan said it is expected to start generating 300 megawatts of electricity in March, with output increasing gradually thereafter.

The press conference was chaired by Forum for Energy Reporters Bangladesh (FERB) Chairman Shamim Jahangir.

Energy Secretary Mohammad Saiful Islam, Power Secretary Farzana Momtaz, and other senior officials were also present at the programme.