Adani Group: Bangladesh’s $500M Godda Debt ‘Unsustainable,’ Says FT

The Adani Group has alerted Bangladesh’s new interim government that its $500 million debt from the Godda power plant is “unsustainable,” according to a Financial Times report.

“We are in constant dialogue with the Bangladesh government and have appraised them of this unsustainable situation where we are meeting not just our supply commitment but also [commitments] to our lenders and suppliers in spite of rising receivables,” Adani Power stated.

Commitment to Power Supply

Despite the growing debt, Adani Power has pledged to continue providing reliable and competitively priced power from the Godda facility to Bangladesh.

Challenges for Bangladesh’s Interim Government

The interim government, led by Nobel laureate Muhammad Yunus, is grappling with economic recovery following the ousting of former Prime Minister Sheikh Hasina. The power supply deal with Adani, which began in April 2023, has faced criticism due to its high cost.

Financial Strain and Future Plans

Bangladesh’s total power liabilities have reached $3.7 billion, with an estimated $800 million owed to Adani. The interim administration has sought financial aid from lenders like the World Bank and plans to reintroduce competitive bidding and review energy deals under the previous government.