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A coalition of environmental organisations on Saturday urged the government to cancel the proposed 42.5MW North Dhaka Waste-to-Energy (WtE) Project, calling it an economically unviable and environmentally harmful investment that could undermine public health, livelihoods and Bangladesh's clean energy transition.
At a press conference in Dhaka, the Coastal Livelihood and Environmental Action Network (CLEAN), the Bangladesh Working Group on Ecology and Development (BWGED) and the Bangladesh Environmental Lawyers Association (BELA) said the Tk5,745 crore project would generate only 42.5MW of electricity despite its huge cost.
Approved in 2020 under the Special Powers Act without competitive bidding, the project agreement was signed in 2021 by the Power Division, Dhaka North City Corporation (DNCC) and China Machinery Engineering Corporation (CMEC). However, construction has yet to begin more than four years later.
The organisations alleged that around 30 acres of land had been acquired for the project, including 10 acres from private owners, while nearly 2,000 waste pickers could lose their livelihoods despite only a small number being included in the rehabilitation plan.
According to the organisations, the plant would generate around 316.5 million kilowatt-hours of electricity annually at an estimated purchase price of Tk26.79 per unit, considerably higher than electricity from large-scale solar projects.
They warned that if the plant operates below its projected capacity, electricity costs could rise further while the government would still be liable for annual capacity payments.
CLEAN Chief Executive Hasan Mehedi said the same investment could finance about 425MW of solar power, generating more than twice the annual electricity output without fuel costs or harmful emissions.
The organisations also questioned the project's financing structure, saying that while the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) are each providing $100 million in loans and CMEC is investing $157 million, the source of the remaining $110 million has not been disclosed publicly.
They also criticised a contractual provision requiring DNCC to supply 3,000 tonnes of municipal waste daily, although the city currently generates less than that amount. Failure to meet the target could trigger financial penalties, creating incentives to generate more waste instead of promoting recycling and waste reduction, they said.
The organisations further warned that the incineration plant could release large amounts of carbon dioxide, toxic pollutants and hazardous ash, posing risks to air quality, public health and Bangladesh's climate commitments.
BELA Policy Coordinator Barish Hasan Chowdhury called on international lenders to withdraw their financial support, saying continued investment in waste incineration is inconsistent with Bangladesh's renewable energy goals and international environmental standards.
The coalition urged the government to scrap the project, prioritise waste segregation, recycling, composting and community-based waste management, ensure proper rehabilitation of affected waste pickers, provide fair compensation to displaced landowners, and redirect international funding towards renewable energy projects.
The organisations said Bangladesh's long-term waste management strategy should focus on sustainable, low-carbon solutions rather than costly waste incineration projects that could impose additional financial and environmental burdens on the country.
https://thedailyexpress.news/news/business/1f177a1a-92cc-66c0-b604-5038954f308a