Dhaka's ground cabling, smart meter projects riddled with corruption: Energy Minister

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood today (7 July) said massive corruption took place in Dhaka's ground cabling project and the Rural Electrification Board's (REB) smart meter project undertaken during the Awami League government's tenure.

"The previous government took a loan of Tk20,000 crore from China for the ground cabling project. But the loan money has run out while the project remains incomplete. This project was undertaken solely for the purpose of corruption," the minister said while addressing a citizens' dialogue on the 'National Renewable Energy Development Strategy Paper (2026-2030)' organised by the Consumers Association of Bangladesh (CAB) at Dhaka Reporters Unity as the chief guest. 

The minister said 60-65 sub-stations were built under the ground cabling project, many of them in areas with no human settlement, meaning electricity demand will take a long time to reach those locations.

He said the project's policy stipulated that no new work would be undertaken until 2041, even though a sub-station's lifespan is only 20 years.

With project funds exhausted but the work unfinished, he said, the current government now has to complete it, otherwise the entire Tk20,000 crore would go to waste.

Regarding the REB's smart meter project, the minister said five lakh smart meters were supposed to be imported, of which the previous government imported only two and a half lakh, but these could not be synchronised, effectively wasting the money.

Another two and a half lakh meters have already been shipped, he said, adding that pulling out of the project is not possible even through litigation, while the benefits are also failing to reach ordinary people.

The minister said the previous government left behind Tk56,000 crore in arrears in the power sector.

Eighty percent of electricity is currently generated by private companies, purchased at high prices, and that clearing these arrears while also meeting the shortfall has become a challenge for the current government, he added.

"Because of all the financial mismanagement left behind by the previous government, we now have to work relentlessly. Private power plants also need to import fuel, and if we don't clear the dues, they cannot buy fuel, and without fuel, the plants remain shut. The previous government undertook many unnecessary projects," the minister said.

He added that the prime minister has taken up several social welfare initiatives that require substantial funds, and the government has been exploring ways to reduce dependence on loans while coordinating these priorities.

"We are in a very difficult situation. That is why we thought we must move toward renewable energy, so that the pressure of energy imports can be reduced," he said.

Referring to his earlier stint at the ministry two decades ago, Iqbal said he is now in his "second innings" and recently decided, after a meeting, that the ministry should have a technical team.

He said a team has been formed with a former chairman of the Power Development Board (PDB) so that it can inspect power plants.

On rising electricity bills, the minister said middle-class and lower middle-class families are now installing air conditioners at home which can push up bills.