Certain unscrupulous public representatives, middlemen, officials of the government and an NGO embezzled Tk 390 crore while acquiring land for three power plants, according to a study by Transparency International Bangladesh.

The TIB in a webinar yesterday said during its study, conducted between February 2021 and April 2022, it found that the corrupt individuals took Tk 255 crore while acquiring land in the 1,320MW Banshkhali Power Plant project in Chattogram.

The state lost around Tk 119 crore to corruption in the 600MW Matarbari Power Plant project in Cox's Bazar and another Tk 16 crore in the 350MW Coal-Fired Power Plant project in Barishal.

The TIB said the money was embezzled in various ways, such as collecting "commission" from compensations, payment for purchases, grants, and by grabbing land without paying the owners.

It also said some of the corrupt people made fake title deeds of government land and received money by selling it back to the government.

The TIB interviewed government officials, locals, and public representatives for the study titled "Coal and LNG-based Power Projects in Bangladesh: Governance Challenges and Way Out".

The TIB said people's land was seized and occupied with the help of a company in Barishal. Fishermen had been threatened, attacked, and evicted with support from local administration and influential people.

According to locals, land of rivers, canals, coastal forests, and 70 acres of arable land of 20 Rakhine families were seized.

In Banshkhali, salt farmers were evicted. More than 100 acres were seized. With the help of public representatives, the pieces of land were re-registered paying landowners next to nothing.

In Matarbari, officials and employees concerned at the DC office took 20-30 percent "commission" from the compensations. There were also allegations of buying land at a lower price by showing them as salt pan or non-arable land.

An NGO assigned to provide grants to the affected had collected 10-20 percent "commission" from the compensation, the TIB said.

TIB research fellows Md Mahfuzul Haque and Md Newazul Moula presided over the study.

They pointed to excess land acquisition too.

Neighbouring countries require an average 0.23 acres for every megawatt generated by burning coal. It is 0.053 acres in case of LNG. But "a total of 942 acres of additional land has been purchased or acquired for the projects selected under this study", said Md Newazul Moula presenting the study.

The power plant in Barishal should have needed 81 acres, but 310 acres were acquired. In Banshkhali, 660 acres were acquired against a requirement of 304 acres and in Matarbari, 1,358 acres against a need of 418 acres, the researchers argued.

They said the price of the power produced from the plants was higher than that of plants in India, China, Pakistan, and Australia.

The researchers observed that none of the projects disclosed important project-related information, including the development project proposal (DPP), environmental impact assessment (EIA), loan rates, conditions, profit distribution, financial report, and audit report.

The power plant in Barishal initially did not have an EIA and ECC-Environmental Clearance Certificate. The EIA approved later failed to consider the environmental concerns of the Tengragiri Forest, known as the second Sundarbans; Andharamanik Hilsa Sanctuary; and Gorapadma Green Belt, the report said.

About the lack of competition in the power sector, TIB said the government could not prepare a master plan by itself. It took financial help from a donor instead, which in turn repeatedly appointed a certain consultant to prepare the plan.

TIB Executive Director Iftekharuzzaman said the policy framework of Bangladesh was being captured by the donor agencies and investors. Investors have been given undue benefits through special provisions.

The TIB made seven recommendations, including formulating a master plan excluding those with conflicts of interest and strategically prioritising renewable energy with a clear roadmap; abolishing the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010; ensuring transparency, accountability and integrity in determining conditions for loans and signing contracts; and disclosing relevant documents.

It also recommended suspending the ongoing construction of coal and LNG-based power plants, building solar and other renewable energy projects on the excess land acquired for the coal and LNG-based power plants, ensuring compensation to the people affected, and taking strict legal actions against the people involved in corruption.