The government is exploring alternative legal procedures to ensure the continued import of LNG and petroleum fuels after the suspension of the Speedy Increase of Power and Energy Supply (Special) Act 2010, which previously facilitated these imports.
The Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources has initiated the search for a new legal framework that will allow for the swift procurement of energy resources, particularly LNG, from the international spot market on short notice.
“We’ve already begun working on a solution,” Md Nurul Alam, Secretary of the Energy and Mineral Resources Division, told UNB. “The Central Procurement Technical Unit (CPTU) of the Ministry of Planning is involved in this effort.”
The decision to suspend all procurements, including LNG imports under the Special Act, was made following a directive from Dr. Muhammad Fouzul Kabir Khan, the newly appointed adviser to the Ministry of Power, Energy, and Mineral Resources. On his first day in office, the adviser announced the suspension of the law, which allowed public procurements in the energy sector without competitive bidding or tender processes. He emphasized that future procurements would adhere strictly to the Public Procurement Act, 2006, and Public Procurement Rules, 2008.
The Speedy Increase of Power and Energy Supply (Special) Act 2010, initially introduced to address an emergency crisis in the energy sector, has been widely criticized by energy experts and economists. They argue that the law became a conduit for corruption, allowing the ousted Awami League government to award lucrative contracts to politically connected businesses.
The law, originally intended as a temporary measure, was extended several times until 2026 and was used extensively to secure contracts in the power sector. This led to skyrocketing power tariffs and an outstanding debt of Tk 45,000 crore in unpaid bills to private power producers.
Recently, organizations such as the Centre for Policy Dialogue (CPD) and the Consumers Association of Bangladesh (CAB), along with other consumer rights groups, have called for the law to be repealed, citing its role in enabling significant financial losses through capacity charges in the power sector.
The interim government’s adviser suspended the law, but it has left the Energy and Mineral Resources Division in a challenging position. The division has relied on this law to import 40-45 LNG cargoes annually from the spot market, with these imports typically costing over $1.5 billion.
“We’ve paused all proposals under the Special Act that were in process for importing LNG and other products,” said Secretary Alam. He added that the ministry is working to ensure that future imports are conducted in compliance with the Public Procurement Act, 2006, and Public Procurement Rules, 2008.