A retired bureaucrat, Muhammad Fouzul Kabir Khan, has been tasked with heading three key ministries for the economy: power, energy and mineral resources; road transport and bridges; and railways.

The Daily Star sat down with him for a wide-ranging interview on his plans for the three ministries, which are mired in allegations of mismanagement and corruption by the former Awami League-led government.

The Daily Star: What has your experience been like so far?

Counselor: People have heard stories of development over the years — that per capita income has soared, GDP growth is high, the economy has grown and so on. But people couldn’t relate to the big numbers – their way of life was at odds with the numbers.

The Awami League-led government had created a chain of corruption. Those who belonged to the chain were only beneficiaries. As a result, people wanted an overhaul of the system – an end to all kinds of corruption. So our main focus is on what people want and what their expectations are.

DS: How is the situation in the power sector now?

Adviser: A network of corruption was also created here and the anchor of that architecture was the Indemnity Act of 2010 (Quick Enhancement of Electricity and Energy Supply-Special Provisions).

The decisions made under this law were without proper review – some got all the benefits. So we decided not to continue with that course of action. We have established an independent committee to review all deals signed under this Act.

We have suspended new projects taken under this Act and we are reviewing projects that have started or are nearing completion.

We carry out floating tenders and follow the 2008 rules for public procurement when we take up new projects or procurements.

DS: What is the fate of the power plants that have taken capacity charges without producing electricity?

Advisor: We do not extend a contract with such power plants. We have said that no facility will receive a tenure extension. Some people came to me and said that if we don’t extend the mandate, it could create problems in some areas. But we asked them how a five-year contract was extended to 16 years. You’ve had capacity charges for 16 years — no more. Due to the rapid rental facilities, the power tariff has increased.

DS: How do you see the power sector when you leave your position?

Advisor: The biggest problem in this sector is the lack of energy supply. Our gas production is decreasing. We emphasize gas extraction through BAPEX. The plan is to drill 50 wells next year and 100 wells the year after.

Our next strategy will depend on the success of the drilling process. If we get at least 1-2 trillion cubic feet of gas reserves, we will take a strategy. If not, we will import liquefied natural gas.

If necessary, we will set up two more floating stock regasification units. One will be installed in South and another in Moheshkhali. But we will go through the bidding process.

We are also trying to find out how we can import fuel at a cheaper price. In addition, we are trying to reduce the subsidy burden on the Bangladesh Power Development Board without increasing the power tariff.

Initiatives have been taken to tender 40 renewable energy projects and these will reduce the power tariff.

DS: What is the current debt status of the power and energy sector?

Advisor: When we took charge, several companies wrote to us that if we don’t pay their fees within a certain period, they will stop the delivery. India’s Adani Power also highlighted their payments.

There were charges of about $1.2-1.5 billion in the energy sector alone. It has now dropped to $700 million. The situation is quite satisfactory now.

DS: You have curtailed the ministry’s power to set fuel prices to create a strong Bangladesh Energy Regulatory Commission, but still some products such as diesel, petrol and jet fuel are set by the Bangladesh Petroleum Corporation. Are there any plans for BERC to handle such products in the future?

Counselor: We need to think more about it. Sometimes the fuel price shoots up on the global market and sometimes it drops drastically. There is a method to fuel pricing – if the price goes up too much in the global market, the government may want to keep it normal by providing subsidies. But if the responsibility is given to BERC, they will go to manual pricing and public interest may be compromised. We will discuss it more.

DS: Electricity customers are tired of the fees for prepaid and postpaid meters. Do you have any plans?

Counselor: I face questions about this from my relatives too. All types of consumers are fed up with this meter fee. We told BERC to identify the problem first – let’s see what we find.

DS: People want to know the status of the mega projects and their future.

Advisor: I myself have visited such project sites. I am disappointed everywhere because the public interest was not taken into account when I took most of these million dollar projects. Most of them were raised with regard to the vested interests of certain groups.

It was never considered how the projects would serve the people and how many people they would serve. For example, the Padma railway project was taken up at a cost of Tk 40,000 crore. I asked the officials what their revenue target was and they said roughly Tk 1,400 crore per annum. When I wanted to know the current earnings, I found that the project earned Tk 37 million in the first six months.

Although the revenue will increase when the line connects Jessore from Bhanga, but by how much? It may rise to Tk 80 crore or Tk 100 crore, but where will Tk 1,400 crore come from?

Let’s take a look at another project in Matarbari area of ​​Cox’s Bazar. It was intended that there would be a port and an Export Processing Zone (EPZ) built in the area and they would require electricity. It is very logical.

But when I visited the area I saw that there was no port or EPZ. However, the power plant has already been completed. Why is this? It is because someone involved in the corruption network wanted a power plant and got it. Where is the public interest here for a Tk 42,000 crore project? It only remains on paper.

DS: How do you define such projects and what will be their fate when they are already finished?

Advisor: All are supplier-driven development in the name of the public interest. The vendors wanted work and the government assigned them. There was no collaboration between the projects. For example, there is a power plant but the transmission line is not yet completed. If there is a pipeline, the gas supply is missing. We try to create a connection between the completed projects to get the result with lower costs.

DS: Let’s talk about the transport sector.

Advisor: It’s the same, the characters in the projects are no different. The cost of repairing a road is enormous. Although they followed the PPR and initiated a good practice of e-tendering, we have seen some loopholes in the process. E-tendering has changed the culture of using muscle power to win tenders. But the people to whom the tenders are submitted or who lead the process have become corrupt – this has acted as a greater deterrent than muscle power.

DS: Can you give us examples?

Advisor: Some of the project managers let the sellers know the base price of the quote. Some tender notices are designed in such a way as to assign a pre-selected seller. As a result, the winners of the tenders are the same biased people who were involved in the government.

In addition, there is a clause that requires experience. As a result, strategies were adopted to favor those who are experienced. And for the next project, the conditions are set in such a way that only the blessed are eligible. So oligarchs were created in every sector.

DS: Does that mean PPR will be reviewed?

Advisors: Yes, we have formed a committee of advisors including Wahiduddin Mahmud, AF Hassan Ariff, Syeda Rizwana Hasan and Adilur Rahman Khan. I am also there to review PPR. We are now reading working documents.

DS: Extending the project period has become a common occurrence.

Counselor: It has become a culture. There are some arguments for increasing seniority but most are illogical. Here we have taken a position: projects must be completed within the set time.

DS: How is the condition of the railway?

Advisor: There are problems related to the train schedule and routes. Many complain that they cannot get tickets online. We have taken the initiative to investigate whether there are irregularities in the Shohoz ticketing app. We have a shortage of locomotives and wagons and shortages in lines. There are unnecessary projects here too.

DS: A subway has been built in Dhaka. What will be the fate of the other subway projects that the previous government took?

Advisor: There are no plans to cancel subway ventures. However, the project costs will be reviewed.

We try to put the right people in the right places. Interestingly, the former managing director of Dhaka Mass Transit Company MAN Siddique has created a rule that no one except former secretary will be able to hold the post and he did not create his successor. This is a technical place — how can a former secretary be effective here?

Those who have knowledge about metro traffic will lead the management of metro company in Dhaka. There are many Bangladeshis abroad. We will form a technical committee to find the right person.

DS: There is little time and public expectations are huge from this government. The results are not visible yet.

Advisor: People don’t see the work behind the scenes. The results will soon be seen – people will feel it.