Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood has alleged that large-scale financial irregularities occurred in several major electricity projects undertaken during the previous administration, leaving the current government to complete unfinished work while managing significant financial liabilities.
Speaking at a citizens’ dialogue on the National Renewable Energy Development Strategy Paper (2026–2030), organised by the Consumers Association of Bangladesh (CAB) in Dhaka on Monday, the minister said that the government had inherited incomplete projects, unpaid debts and rising costs that continue to place pressure on the country’s power sector.
He claimed that a Tk 20,000 crore loan secured from China for Dhaka’s underground electricity cabling project had already been spent, despite the project remaining unfinished.
Iqbal Hasan alleged that the scheme had been poorly planned and questioned the need for several of the substations built under the programme.
According to him, around 60 to 65 substations were constructed, including some in areas where electricity demand remains very limited.
He also criticised project guidelines that reportedly prevented additional work until 2041, despite the expected operational lifespan of many substations being about two decades.
The energy minister also stated, "The government now has little choice but to complete the remaining work, arguing that abandoning the project would result in the loss of the entire investment.”
He raised concerns about the Rural Electrification Board’s (REB) smart meter programme.
“The original plan was to import 500,000 smart meters, but only half that number had been brought into the country during the previous administration,” he added.
According to him, the imported meters could not be synchronised with the existing system, limiting their usefulness.
He further added that another 250,000 meters have already been shipped, making it difficult for the government to withdraw from the project despite the reported technical challenges.
The minister again said, "The current administration inherited approximately Tk 56,000 crore in outstanding liabilities within the electricity sector.”
He noted that around 80 per cent of Bangladesh’s electricity is generated by private companies, requiring the government to purchase power at agreed rates.
Delays in settling outstanding payments, he said, can affect the ability of power producers to import fuel, increasing the risk of supply disruptions.
The minister argued that financial pressures created by previous spending decisions have made it more difficult to maintain reliable electricity generation while supporting other government priorities.
Against that backdrop, he said, "The government intends to accelerate the development of renewable energy to reduce Bangladesh’s dependence on imported fuel and strengthen long-term energy security.”
He also announced the formation of a new technical inspection team within the ministry, led by a former chairman of the Bangladesh Power Development Board (PDB). The team will be responsible for assessing the condition and performance of power plants and providing technical oversight for future projects.
Addressing concerns over rising household electricity bills, the minister mentioned, "Increasing ownership of air conditioners among middle-income and lower middle-income families has contributed to higher electricity consumption, resulting in larger monthly bills for many consumers.”
The government has not yet announced any formal investigation into the projects mentioned by the minister. His remarks come as Bangladesh seeks to expand renewable energy capacity while addressing financial and operational challenges across its power sector.
