BANGLADESH Trends and Developments Contributed by: Arunima Dutta Aurni and M. Imtiaz Farooq, Farooq and Associates
Conclusion Bangladesh’s power sector is therefore moving through a period of recalibration. The direction is clear: greater emphasis on renewable energy, com- petitive procurement, tariff rationalisation, payment discipline and more structured project development. However, the success of this transition will depend on implementation. Policy ambition will need to be matched by bankable project documents, consistent procurement practice, predictable payment behaviour and respect for contractual certainty. The next phase will show whether these reforms can create a more sustainable and investor-friendly power sector, while also addressing the fiscal and operational pressures that have shaped the sector in recent years.
carried out preparatory work, incurred costs or made financial commitments on the basis of those awards. The legal position is now beginning to be tested. In an earlier matter, the High Court Division held that cancellation of an LOI by BPDB was illegal due to pro- cedural irregularity, as the decision had not involved the highest decision-making authority. More recently, a major power company has filed a writ petition chal- lenging the cancellation of its LOI, and the High Court Division has issued a Rule Nisi after the initial hearing. The matter remains pending, and it is yet to be seen whether cancelled LOIs will receive any protection under the saving clause of the repeal legislation. For investors, the outcome will be important. It will indi- cate how the courts balance changes in procurement policy against legal certainty where sponsors had already acted on government-issued project awards.
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