The Ministry of Power, Energy and Mineral Resources has directed the suspension of all construction activities at the 100 MW Madarganj Solar Power Plant in Jamalpur until further notice.
This decision follows allegations of inflated project costs, comparatively high electricity tariffs, and questions regarding the appropriateness of the project site.
At a meeting held on Wednesday, Muhammad Fauzul Kabir Khan, Adviser to the Ministry, instructed that a full investigation be carried out to determine whether irregularities have occurred. He emphasized that if any wrongdoing is found, those responsible will be brought under accountability.
Key observations raised:
The average cost of renewable power plants in Bangladesh is Tk 6–6.5 crore per megawatt, whereas the Madarganj project has been estimated at over Tk 21 crore per megawatt.
The total project cost has been set at USD 170 million (over Tk 2,000 crore).
Approximately 47 km of transmission lines would be required to connect the plant to the national grid, which is not considered economically viable for 100 MW capacity.
The tariff of electricity produced at this plant has been proposed at Tk 10–11 per unit, whereas other solar plants typically supply at Tk 8–8.95 per unit.
The Ministry has decided to review and revise the proposed tariff to a reasonable level. The Implementation Monitoring and Evaluation Division (IMED) of the Planning Ministry will conduct a detailed cost investigation. Officials found to have inflated the estimates will face necessary action.
Until the investigation is completed, no further funds will be released, and the project work will remain suspended.
The Madarganj Solar Power Project is a joint venture between BR Powergen Company Limited (Bangladesh) and CREC International Renewable Energy Company Limited (CIRE China), with CIRE holding 70% and BR Powergen 30% ownership. The agreement was signed on June 13, 2024, and commercial production was initially scheduled for December 2025.
The project cost also includes development of 325.65 acres of land, construction of transmission lines, office buildings, workshops, warehouses, Ansar barracks, rehabilitation of 241 families, and the establishment of community facilities such as a mosque and ponds.