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Tk5cr solar purchases allowed under relaxed procurement rules

The proposed law allows limited tendering and waives mandatory e-GP requirements for certain solar projects

Update : 14 Nov 2026, 01:45 PM

The government is seeking to introduce special provisions allowing solar power projects to bypass some standard public procurement rules, including limited tendering for purchases worth up to Tk5 crore and exemptions from mandatory electronic government procurement (e-GP).

The provisions are included in the Special Solar Power Installation Bill, 2026, which has drawn criticism from opposition lawmakers over concerns that the exemptions could benefit particular groups unfairly.

Under Section 7 of the bill, purchases of goods and related services worth up to Tk5 crore under the capital expenditure (CAPEX) model can be made through the Limited Tendering Method. The bill also allows the government to waive mandatory e-GP requirements to expedite designated solar power projects.

It further empowers the government to determine the approving authority for tripartite agreements and set their duration through official notifications.

The provisions create exceptions to the Public Procurement Act, 2006, and the Public Procurement Rules, 2025, which regulate government purchases to ensure transparency and competition.

The bill also seeks to provide legal recognition to decisions and activities undertaken before its enactment. Under Section 22(3), government orders, notifications, policies, guidelines and ongoing or completed activities initiated before the law takes effect will be considered valid under the new legislation.

Jamaat-e-Islami MP Najibur Rahman opposed the bill in parliament on November 10, alleging that the ordinance was introduced to provide unfair advantages to a particular group.

He questioned why the government had issued an ordinance on October 19 when parliament's fourth session was scheduled to begin on November 9, just 21 days later.

He also questioned the urgency behind bypassing the regular legislative process, arguing that the government could have introduced the bill when parliament reconvened.

However, Chief Whip Nurul Islam Moni defended the move, saying the government had exercised its constitutional authority to issue ordinances when parliament was not in session.

He said solar installation work had already begun across the country, with allocations made for projects in different upazilas. The initiative had helped add 400MW of electricity to the national grid, he claimed.

Moni added that the ordinance had enabled the government to begin implementation earlier than would have been possible through the regular legislative process.

Law Minister Md Asaduzzaman said the president's satisfaction in issuing an ordinance under Article 93 of the constitution was a subjective matter that parliament or the courts could not question.

He said the bill had been placed before parliament and would undergo scrutiny through the relevant committee before further consideration. Parliament retains the authority to decide whether the ordinance should be converted into law, he added.

OPEX model gets priority

The bill prioritises the operational expenditure (OPEX) model, under which service providers finance, install, operate and maintain solar power systems at suitable locations. Payment or adjustments are made based on the electricity generated and the terms of the agreement.

Under the CAPEX model, organisations with their own funds or regular income can purchase and install solar systems using their own resources and retain ownership.

Section 5 provides for district-wise lists of eligible service providers under both models. Customers can select providers through competition among enlisted companies or use open tendering to appoint other firms.

The bill also requires tripartite agreements among customers, service providers and the designated authority, covering technical standards, ownership, maintenance, net metering, payment and dispute resolution.

However, questions remain over how such agreements will work when customers choose companies through open tendering without using enlisted service providers, as permitted under Section 5(5).

The Sustainable and Renewable Energy Development Authority (SREDA) will be responsible for maintaining information on its website and monitoring solar installations.

Penalties for violations

The bill proposes prison terms and fines for solar electricity theft, equipment theft or damage, illegal connections and obstruction of installation, inspection or maintenance.

Electricity theft carries a maximum three-year prison term, a Tk50,000 fine, or both. Damaging equipment can result in up to five years' imprisonment, a Tk5 lakh fine, or both. Illegal connections and obstruction of work carry up to three years' imprisonment, a Tk5 lakh fine, or both.

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