Unfinished power project faces probe over missing funds, lapses

A land acquisition project for the Patuakhali Thermal Power Plant, undertaken by Ashuganj Power Station Company Ltd (APSCL), was abruptly closed despite key components remaining unfinished and Tk1.49 billion in public funds going unaccounted for, according to a latest review report.

Following a review of the Project Completion Report (PCR), the Implementation Monitoring and Evaluation Division (IMED) uncovered serious procedural lapses, financial discrepancies, and signs of corruption during both the implementation and closure phases of the project.

In light of the scale and gravity of the irregularities, the Planning Ministry's IMED has recommended forming a high-level investigation committee to conduct a thorough probe and ensure accountability of those responsible.

Officials said the Executive Committee of the National Economic Council (ECNEC) initially approved the project with an estimated cost of Tk8.2 billion to acquire and develop 925.5 acres of land by June 2019 for the construction of a 1,320MW (2×660) super thermal power plant in Patuakhali district.

However, the project cost later rose to Tk8.53 billion, while its tenure was extended to June 2024 following at least six revisions.

In September 2021, the Project Steering Committee (PSC), led by the then Power Division Secretary, decided to declare the project complete, leaving some components unfinished.

This decision violated government rules requiring prior IMED approval to close any ADP-listed project with pending components, a breach highlighted by IMED Director Muhammad Mizanur Rahman during a field inspection.

The PCR prepared by Ashuganj Power Station Company states the project reached 87.91 per cent physical progress with total spending of Tk6.37 billion, representing about 74.64 per cent of the latest budget estimate.

However, the field inspection indicated lower physical and financial progress, as major components remain unfinished and work on some parts has yet to begin.

Citing an example, the report reveals that Tk2.93 billion was allocated for land development work involving the filling of 9.52 million cubic meters of soil and sand. Out of the contract price of Tk2.93 billion, only Tk2.17 billion has been disbursed so far.

Although the report claims 81.60 per cent physical progress, the payments made suggest that actual progress stands closer to 74.10 per cent.

The report also highlighted that despite a contract value of Tk7.78 million being fully paid, the site office was in fact constructed temporarily at the contractor's own expense, as confirmed by the present assistant manager.

"Since the project did not construct the site office as specified in the DPP component, the Power Division should form a high-powered investigation committee comprising skilled civil engineers from different firms and representatives from relevant ministries and departments," reveals the report.

This committee will assess the actual work completed against the approved drawings and designs up to the deadline,  verify the accuracy of payments made, conduct a thorough investigation, and submit the detailed report to IMED.

The inspection report also found a sum of Tk1.49 billion untraceable, as the APSCL did not mention in which components this amount had been spent.

The PCR shows that against the total government funds allocation of Tk7.71 billion under the final approved DPP, a combined amount of Tk6.22 billion was either spent or remained unspent by the end of the project.

However, the whereabouts of the remaining amount remain unclear, prompting IMED to suggest that the project director provide a specific explanation. If the explanation is found unsatisfactory, financial responsibility may be fixed against the concerned project officials.

More concerning is the fact that the project did not undergo any formal audit for its entire seven-year duration, covering the fiscal years from 2017-18 to 2023-24.

The PCR included no audit reports, and it remains unclear whether audits were ever conducted or deliberately withheld.

The IMED highlighted this as a grave lapse in accountability, saying such negligence is unacceptable for a high-value project involving public funds.

The IMED report also noted that procurement activities within the project were inconsistent and lacked standardisation.

"Similar types of work were executed using different procurement methods without any justification," reveals the report, and stressed the need for consistent procurement practices under the Power Division to prevent discrimination and manipulation between projects.

The project also suffered from weak contract enforcement. Although liquidated damages (LD) were imposed on contractors for failing to complete work on time, these penalty amounts were not deducted from the contractors' bills, as required by the rules.

This failure to recover penalties not only violates financial norms but also reflects administrative weakness and compromises government interest.

Another core component of the project - land acquisition - also remained incomplete, while out of 125.5 acres acquired, compensation for about 41 per cent of the land is still unpaid.

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