Agrico International's Ghorashal 145 MW power plant has beaten gambling in terms of profits. It has earned 21 crore 14 lakh 10 thousand dollars in capacity charges (rent) by investing 10 crore dollars.
The Power Development Board (PDB) extended the time and money under a special law in the middle of the company's open tender for the power plant. The capacity charge was set at 21 dollars (per kilowatt) in the open tender for a 3-year contract. The diesel-based power plant was approved for dual fuel (diesel and gas) after a year and a half. And here the company, in collusion with the Power Development Board, fired cannon. The capacity charge was increased from 21 dollars to 30 dollars. The capacity charge was supposed to decrease if the rental period increased, but in Agrico's case, the opposite happened. The company's profit was the main focus in the contract, not the state's interest. And this is how the company was able to earn several times more money.
According to the Power Development Board (PDB), according to the first agreement, the capacity charge had to be paid every month at 30 lakh 45 thousand dollars. Accordingly, the capacity charge for 36 months was calculated at 10 crore 96 lakh 20 thousand dollars. In these rental-based power plants, the cost is determined based on the investment and operating costs in the first agreement. But in an unprecedented way, the capacity charge and the contract period were extended by 18 months under the Special Provisions Act.
The mysterious company could not stop here, after the end of the 4 and a half year period, a contract was signed for another 3 years. This brought the total capacity charge to about Tk. 2.5 thousand crore. And the company's initial investment was only about Tk. 700 crore. It earned Tk. 1800 crore from one power plant. However, at that time, setting up a base load power plant would have cost Tk. 900(6 crore megawatts). If such a power plant were built, uninterrupted power supply for 20 to 25 years would be available at that cost.
The Power Development Board's 2011-12 annual report states that the price of each unit of electricity from the Ghorashal Power Plant in that fiscal year was Tk. 12.95. At that time, the cost of generating electricity with gas was less than Tk 2. That year, the cost of buying electricity from the Ashuganj Power Station Company located in the same area was only Tk. 1.92, while the cost of buying electricity from the Electricity Generation Company was Tk. 1.51. In other words, the fact that the price was several times higher was an open secret. Yet, the PDB has repeatedly extended their contracts. It is said that the high-priced contracts were initiated through Agrico. Later, other companies also got them.
Muhammad Fawzul Kabir Khan, Advisor on Power, Energy and Mineral Resources, said at a program that instead of walking the path of sustainable development, the main goal of the previous government seemed to be to provide opportunities for corruption in the power and energy sectors.
Many have commented that the Agrico International incident could be a prime example.
Although there have been various cases of looting in electricity, the incident of increasing capacity charges after the agreement is unprecedented. There are various rumors about this agreement by the UK-based company Agrico International. The ownership of the company is shrouded in mystery.
Infradev Associates Limited has worked as the local agent of the company in Bangladesh. It is owned by Sarafat Chowdhury Sadi. The expatriate Bangladeshi former secretary It is said that he is a distant relative of Dr. Sadat Hossain. He used to introduce himself as a relative of Toufiq e-Elahi Chowdhury. Many demands of the PDB would change due to his power. He used to address the senior officials of the PDB and the power department as Tumi. Although many were embarrassed, they did not dare to open their mouths due to their closeness to Toufiq e- Elahi Chowdhury. It is said that Toufiq e-Elahi Chowdhury himself used to get a share of the excess profits of the power plants which may have taken him beyond the borders of the country.
After that power plant, Agrico International was given two more power plants. These are the Brahmanbaria 85 MW power plant in 2011, and another Ashuganj 95 MW power plant came into production on May 31, 2011. It also received a license for three years. However, after several extensions of the contract period due to the touch of invisible magic, the two power plants ran for a total of eight years. The capacity charge of these power plants was set at 30 dollars. About Tk. 1500 crore against the Brahmanbaria 85 MW power plant, and about Tk. 1300 crore against the Ashuganj 95 MW. The PDB paid a capacity charge of about Tk. 2700 crore against the two plants.
These unequal contracts have an impact on the average cost of electricity generation. According to the Bangladesh Power Development Board (BPDB), the average cost of generation is below Tk. 2, but it has skyrocketed in a few years. In 2022, the average production cost has reached Tk. 11.51.
Muhammad Fawzul Kabir Khan, Adviser on Power, Energy and Mineral Resources, said, "We are selling electricity at an average rate of Tk.8.95 per unit, and buying it at Tk. 12 to Tk. 25. Why was it bought at a higher price, who made the contract, why did they do it? Didn't the businessmen of Bangladesh think at the time that they were doing business, why are they taking it at such a high price, will they compensate the nation?
An attempt was made to talk to Sarafat Chowdhury Sadi, the Bangladeshi agent of Agrico International. His phone was found switched off, and there was no response even after sending a message on WhatsApp.
Sarafat Chowdhury Sadi's younger brother, Robin Chowdhury, Senior General Manager of Infradev Associates Limited told Barta24.com, there were no irregularities in getting the power plant. Everything that happened was done according to the rules.
When attention was drawn to the increase in the price and time while the contract was ongoing at an open price of 21 dollars, he said, I cannot say anything about this. You contact PDB.
When his attention was drawn to the rumor of family ties and partnerships with the Awami League government's adviser on power, energy and mineral resources, he said, those who said these things did not know and spoke wrongly. Agrico did business according to the rules.
Those involved in the energy sector believe that if Sarafat Chowdhury Sadi, his company and close associates are arrested as bank accounts, the big secret of money laundering may come out. Many big shots may be involved in this.