This payment shortfall has emerged as a critical challenge for Yunus’s administration, which took power last month following the ousting of former Prime Minister Sheikh Hasina. Yunus’s government has criticized the expensive infrastructure agreements negotiated under Hasina, including the contentious deal with Adani to supply coal power from its 1,600-megawatt Godda plant in India.
Adani Power, in a statement to the Financial Times, emphasized its ongoing commitment to providing reliable power to Bangladesh despite the growing financial strain. “We are in constant dialogue with the Bangladesh government and have appraised them of this unsustainable situation where we are meeting not just our supply commitment but also [commitments] to our lenders and suppliers in spite of rising receivables,” the company said.
The financial liabilities are part of a broader energy crisis in Bangladesh, where total power-related debts have reached $3.7 billion. Muhammad Fouzul Kabir Khan, Yunus’s chief energy adviser, told the Financial Times that Bangladesh is overdue on $492 million of its $800 million debt to Adani. The interim government is seeking financial assistance from international lenders, including the World Bank, to stabilize its economy.
Bangladesh has experienced rapid growth in recent years but continues to grapple with chronic energy shortages, exacerbated by declining domestic gas reserves. Critics have pointed out that measures taken by the previous administration, such as bypassing open tendering processes, have contributed to widespread corruption and inefficiencies.
Adani, a major conglomerate with diverse investments, including a recently announced $10 billion semiconductor plant, remains committed to supplying power to Bangladesh. However, the Yunus administration has indicated plans to re-evaluate previous energy deals, aiming to reintroduce competitive bidding and strengthen regulatory oversight.Despite the financial pressures, Adani has asserted that it has no intentions of diverting power supplies away from Bangladesh, underscoring its continued commitment to the deal. “Currently our Godda plant is not connected to the Indian grid and hence there is no question of looking for any alternate supply market,” the company said.The interim government, while seeking to renegotiate terms for better financial efficiency, has also expressed a desire to maintain positive relations with both India and China, emphasizing that future infrastructure deals must be cost-effective and transparent.