Bangladesh has successfully cleared all its outstanding payments to India’s Adani Power, marking a highly significant step towards solidifying a crucial energy partnership. This positive development was achieved through a substantial one-time payment of $437 million in June, effectively settling all receivables owed to Adani Power up to 31 March of this year for electricity imports. This important financial resolution brings the power purchase agreement between Bangladesh and Adani Power back to a normal and stable financial and legal standing, fostering greater trust and predictability in this cross-border energy venture. Previously, Adani Power typically received payments ranging from $90 million to $100 million per month for the electricity supplied. The recent comprehensive payment, which included not only arrears but also delayed interest and other associated charges, signifies a complete settlement of all past dues. This strategic move by Bangladesh is expected to significantly strengthen the confidence in the long-term energy supply from Adani’s Godda power plant, located in Jharkhand, India. With the dues now fully cleared, the Bangladesh Power Development Board (BPDB) has instructed Adani Power to ensure both its 800 MW units, totaling a robust 1,600 MW, are kept fully operational. This ensures the continuous availability of critical electricity to meet Bangladesh’s growing national demand. Ensuring timely future payments is also a key component of this well-structured resolution. To provide added stability and security for upcoming transactions, Bangladesh has proactively established a Letter of Credit (LC) equivalent to two months’ worth of bills, amounting to approximately $180 million. Furthermore, a sovereign guarantee has been provided for all remaining dues under the agreement. This forward-thinking approach is designed to prevent any potential future payment delays, ensuring a smooth, continuous, and uninterrupted flow of power. This strong financial commitment from Bangladesh clearly highlights its unwavering dedication to securing reliable energy sources for its expanding economy and thriving population. This positive outcome is profoundly crucial for Bangladesh’s energy sector. The 1,600 MW supplied by Adani Powerโs Godda plant plays a vital role, meeting a significant portion of the country’s overall electricity needs and reducing reliance on more expensive domestic liquid fuel-based generation. Resolving these financial matters reaffirms Adani Power’s position as a reliable power source, which is absolutely vital for Bangladesh’s energy security and its ambitious journey towards continued economic development and industrial growth. The enhanced collaboration between Bangladesh and Adani Power serves as a testament to the strong regional partnerships that are essential for fostering growth, stability, and mutual prosperity in the energy sector, ultimately bringing brighter prospects and consistent power to homes and industries across the nation.
