BANGLADESH Trends and Developments Contributed by: Arunima Dutta Aurni and M Imtiaz Farooq, Farooq & Associates
Farooq & Associates 3rd Floor Darus Salam Arcade 14 Purana Paltan Dhaka – 1000 Bangladesh Tel: +880 2956 6100 Email: info@farooqandassociates.com Web: farooqandassociates.com
Introduction Over the past year, Bangladesh’s power sec- tor has undergone sweeping changes amid an unprecedented period of political and institu- tional transition. The resignation of the former prime minister in August 2024, following mass protests, and the formation of an interim govern- ment marked a significant turning point. Since then, the sector has seen a flurry of reforms, including the repeal of major legislation which was the cornerstone of procurement in various projects in the power sector over the last 14 years, a reorientation of procurement processes, and the publication of a new Renewable Energy Policy aimed at overhauling the clean energy landscape. These reforms reflect the interim government’s stated intent to address long-standing concerns over transparency, accountability, and market competitiveness in the energy sector. However, they have also introduced new uncertainties for investors and project developers, particularly in relation to existing contracts and regulatory stability. Repeal of the Special Act The Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010 (the “Special Act”) was enacted to facilitate the
development of power and energy-related pro- jects in response to Bangladesh’s urgent ener- gy needs. Under the Special Act, the Govern- ment of the People’s Republic of Bangladesh (the “GOB”) and all enterprises owned or con- trolled by it could undertake plans for the rapid enhancement of electricity or energy generation, transmission, transportation, and marketing, or accept proposals from and enter into agree- ments with the private sector, without being required to comply with the Public Procurement Act 2006 or any other prevailing laws. Over the past 14 years, a large number of power projects, including both thermal and renewable, have been awarded to the private sector under the Special Act. However, only a limited number of these projects were successfully implemented and have commenced commercial operations. Section 6 (2) of the Special Act allowed the pro- cessing committee to consult and negotiate with a single or limited number of organisations regarding any purchase, investment plan, or pro- posal. Upon approval of the Ministry of Power, Energy & Mineral Resources, such organisation could then be selected for the relevant work, and steps could be taken to forward the matter to the Cabinet Committee on Economic Affairs or the Cabinet Committee on Government Purchase.
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