Bangladesh: Analyzing Hasina era Adani Power Deal

[UKBengali]

Because 850 Million Dollars is a big amount for Any Company

Companies have to answer to their Bankers and Shareholders

Yes I know and Adani is right to want the money back as soon as possible.

BD was willing to pay 100 million US dollars a month when the energy supplied was costing it 60 million US dollars.

So clearing 40 million per month is still a decent chunk per month out of the 850 million US dollars owed.

BD cannot pay what it does not have. Adani cannot win if it goes to court here.

 

[LeonBlack08]

Can you show what is the market rate which you are getting and what's the Adani offering ?

Here is the report from a top Pro India newspaper in Bangladesh -

"According to sources from the Power Development Board (PDB), the 1,320 MW power plant at Payra in Patuakhali is charging USD 75 per tonne of coal. In contrast, the coal prices at Chattogram’s Banshkhali SS Power Plant and Bagerhat’s Rampal Power Plant are both under USD 80 per tonne.

Adani, however, is requesting USD 96 per tonne of coal, which is USD 16-21 more per tonne than the prices at Payra and Rampal."

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[Circadian Rhythm]

Given the reputation of Adani - I doubt it.

It will be a field day to highlight all of Adani’s crookedness in front of international media and financial markets.

Like the crooked way he manipulates the share price to raise money from Indian retail investors lol

So now you are Worrying about Indian Shareholders of Adani

Congratulations You just
RE DEFINED HYPOCRISY

 

[BananaRepublic]

Good. We want that. We want to know how both the Hasina regime and Adani came to the agreement on coal pricing which is significantly above market rate. Adani got Hasina to buy and import coal from its Australian plant, despite cheaper alternatives being available. We would like to see all these facts come out and then use it to pursue corruption cases against both Adani and Hasina.

That’s basically is BD’s trump card lol

 

[BananaRepublic]

So now you are Worrying about Indian Shareholders of Adani

Congratulations You just
RE DEFINED HYPOCRISY

Why is it a hypocrisy to worry about Indian shareholders?

And how am I worrying about them?

Strange assertion to make!

 

[Cryptonian]

Here is the report from a top Pro India newspaper in Bangladesh -

"According to sources from the Power Development Board (PDB), the 1,320 MW power plant at Payra in Patuakhali is charging USD 75 per tonne of coal. In contrast, the coal prices at Chattogram’s Banshkhali SS Power Plant and Bagerhat’s Rampal Power Plant are both under USD 80 per tonne.

Adani, however, is requesting USD 96 per tonne of coal, which is USD 16-21 more per tonne than the prices at Payra and Rampal."

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Coal price is a stupid point of debate if one doesn't mention Whats the calorific value of above mentioned coal varieties ?

Question should be at what price per unit electricity will Patuakhalli and Banshkhalli plant finally offer.

 

[Circadian Rhythm]

India also walked out of ENRON
Deal in 1995 and was sued for Billions of Dollars in Damages

Fortunately ENRON went Bankrupt soon

But still Arbitration cases favoured ENRON and we had to negotiate an Out of Court Settlement

 

[BananaRepublic]

Because 850 Million Dollars is a big amount for Any Company

Companies have to answer to their Bankers and Shareholders

There’s plenty of demand for that in India.

And Adani is not losing its 850 million dollar power plant. It’s still in India lol

 

[LeonBlack08]

Did you see.how the REKO DIQ case played out in case of Pakistan

Arbitration cases depends on the Contracts signed

Here there was a Sovereign Guarantee by BD Government

Let us wait and watch

BD may very well have to pay the contract obligations if taken to arbitration, I don't doubt it.

What BD will hope to achieve by taking this to court is expose the corruption that led to the deal. Question is can Adani and Modi afford such a huge controversy or not? Hasina has no choice, she is doomed anyway.

 

[BananaRepublic]

Coal price is a stupid point of debate if one doesn't mention Whats the calorific value of above mentioned coal varieties ?

Question should be at what price per unit electricity will Patuakhalli and Banshkhalli plant finally offer.

Yep! I pointed out the same thing to some of the members.

You cannot compare coal.

Just like barrels of oil. Venezuelan crude is crap quality.

 

[hephaestus]

taking this to court is expose the corruption that led to the deal.

Then why paying $40 mil extra every month. They can just say it is an unjust deal and walk out of it. I fail to understand your logic?

 

[LeonBlack08]

Coal price is a stupid point of debate if one doesn't mention Whats the calorific value of above mentioned coal varieties ?

Question should be at what price per unit electricity will Patuakhalli and Banshkhalli plant finally offer.

The issue isn't entirely about coal prices. I shared that because you asked for market rate.

The controversy has always been about the need for this business deal for Bangladesh in terms of value addition and the political corruption.

Here is a report from Al Jazeera from 2023 which addresses multiple angles that's wrong with the deal -

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[Cryptonian]

The issue isn't entirely about coal prices. I shared that because you asked for market rate.

The controversy has always been about the need for this business deal for Bangladesh in terms of value addition and the political corruption.

Here is a report from Al Jazeera from 2023 which addresses multiple angles that's wrong with the deal -

Redirect Notice

And it was later on refuted by disclosing the supply cost. If your IG energy advisor thinks Adani stated wrong figure. It can come out.

Adani Power refutes reports of supply of costly power to Bangladesh - CNBC TV18

Business News: Get the latest Business News, Live Share & Stock Market Updates, Top News from India and across world. Read Top Business News and updates on financial, economic and banking news on CNBCTV18.

www.cnbctv18.com

Citing the comparative power costs detailed in the Bangladesh Power Development Board's FY23 (July-June) report, company sources stated that Adani Power supplies electricity to Bangladesh at a rate of BDT 14.02 per unit, compared to BDT 16.02 per unit from the Payra Power Plant and BDT 14.12 per unit from the Rampal Power Plant.

 

[LeonBlack08]

Then why paying $40 mil extra every month. They can just say it is an unjust deal and walk out of it. I fail to understand your logic?

Because Adani as of now still providing electricity to the national grid.

Because the Interim government has other immediate priorities at hand than taking on Adani to court at this moment. The country is still recovering from the chaos of July-August.

The interim government of Bangladesh has been reevaluating many of the projects and decisions taken during the Sheikh Hasina era. It will take them time for them to evaluate and make a decision regarding this.

 

[Dalit]

Time for China to step in and help BD.