Background

Over the past few years, Bangladesh power and energy sectors have drawn the attention of civil society, human rights and environmental activists regarding the loss of livelihood, displacement, violation of human rights, damaging environment and accelerating climate change, increasing public debt and tax burden. Absence of power and energy policy, resettlement and compensation mechanism made the sector most vulnerable and destructive. Government has subsidized $10bn between fiscal year 2009-10 to 2000-21 as capacity charge due to the over capacity of electricity. Even IMF noticed in their article-IV report to decrease energy sector subsidy, but it is constantly increasing because of inequitable development policies of the power and energy sector. For example, Power System Master Plan-PSMP 2016 has projected overcapacity of production claimed by experts and academics. Similarly, PSMP proposed fuel mix of electricity production mostly dependent on fossil fuel like coal and LNG/NG while the country has huge potentials of renewable energy. PSMP projected over capacity and proposed fuel mix encouraged the government to develop coal and LNG based mega power plant projects. Currently 29 coal-fired power plants are under construction and in the pipeline of which 1200x2MW Phase-I&II and 1400MW Kohelia coal power plant in Matarbari, 1320MW Rampal coal power plant and 1320MW Payra coal projects are getting immense attention of CSOs and HRDs due to the negative impact of social, environmental and climatic. Ministry of Power and Energy implements PSMP-2016, CPGCBL and BPDB the sponsor of the Matarbari, Kohelia and Rampal project alongside relevant national and local level government bodies and ministries involved with the sector. Japan International Cooperation Agency-JICA and Tokyo Electric Power Company-TEPCO prepared the PSMP 2016 while Sumitomo Mitsui Banking Corporation-SMBC financial advisor of Matarbari Phase-I&II and Kohelia project. Indian Exim Bank and Nation Thermal Power company-NTPC India are involved with the Rampal project. Chinese companies and banks have a big stake in the power sector value chain regarding finance, Engineering, Procurement and Construction-EPC, technology and coal supply alongside MNCs like Fichtner, Siemens, General Electric-GE including Development financial 3 Institutions-DFIs like World Bank-WB, Asian Development Bank-ADB and Asian Infrastructure and Development Bank-AIIB also investing in the power sector in Bangladesh.