Dhaka, July 2 -- The recent warning by Han Kun, President of the Chinese Enterprises Association in Bangladesh, at the 3rd Bangladesh-China Renewable Energy Forum, must not be taken lightly. As per a report published in this newspaper on Tuesday, his remarks highlight a growing unease among foreign investors in Bangladesh's power sector, particularly in response to the government's abrupt decision to renegotiate tariffs for several power projects already at advanced stages.
Renegotiating power purchase agreements (PPAs) after contracts have been signed and investments made sends a dangerous signal that the investment climate in Bangladesh is unpredictable and insecure. Investors operate on long-term forecasts and fixed returns; any disrupt...