Environmental groups urged Bangladesh to scrap the North Dhaka waste-to-energy project, citing excessive costs, pollution, climate emissions, weak public consultation, livelihood losses and long-term financial risks.
Environmental and legal advocacy groups on Saturday called on the Bangladesh government to immediately cancel the proposed North Dhaka 42.5 MW Waste-to-Energy project, arguing that it would impose enormous financial costs while worsening air pollution, climate emissions and public health risks.
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) described the Tk 57.45 billion (US$467 million) project as one of the most expensive and environmentally damaging power projects ever undertaken in Bangladesh.
The organisations said the project would generate only 42.5 MW of electricity while creating long-term economic, environmental, climate and public health burdens.
Approved in 2020 under Bangladesh’s Special Act without competitive bidding, the project agreement was signed in 2021 between the Power Division, Dhaka North City Corporation (DNCC) and China Machinery Engineering Corporation (CMEC). More than four and a half years later, construction has yet to begin.
The organisations said the project required the acquisition of 30 acres of land including 10 acres from local landowners. Many landowners reportedly opposed the acquisition and remain inadequately compensated. They also said the project threatens the livelihoods of around 2,000 waste pickers although only 40 have been included in the rehabilitation plan.
According to the groups, the project would be among the world’s most expensive waste-to-energy plants. At an 85% Plant Load Factor (PLF), it would generate only 316.5 million kilowatt-hours of electricity annually while the government would purchase electricity at US¢21.78 or Tk 26.79 per unit, around 2.5 times the cost of utility-scale solar power.
They said if the plant operates below the projected PLF the electricity tariff could increase to between Tk 47 and Tk 75 per unit. Regardless of production levels, the government would still be required to pay annual capacity charges of Tk 7.24 billion (US$58.87 million).
CLEAN Chief Executive Hasan Mehedi said the same investment could instead install around 425 MW of solar power capable of generating nearly 688 million units of clean electricity annually without consuming fuel or emitting harmful pollutants.
He also said the project would cost about Tk 1.35 billion per megawatt, nearly 2.5 times higher than the construction cost per megawatt of Bangladesh’s Rooppur Nuclear Power Plant.
The organisations also questioned the project’s financing arrangements.
They said the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) are each providing US$100 million in loans while CMEC is investing US$157 million. However, they said the remaining US$110 million financing source has never been publicly disclosed, raising concerns over transparency and accountability.
The groups further argued that the project would encourage increased waste generation instead of reducing it.
Under the agreement, DNCC must supply 3,000 tonnes of municipal waste every day. If sufficient waste is not delivered, DNCC would have to pay US$50, approximately Tk 6,150, for every tonne of waste shortfall.
The organisations said DNCC currently generates only about 2,750 tonnes of waste daily, meaning the city would either have to produce more waste or pay financial penalties. They argued that the arrangement discourages waste reduction, recycling and circular economy practices.
The organisations also warned of serious environmental and health impacts.
They said the incinerator would release 73,576 tonnes of ash and ultrafine particulates every year along with 39.56 tonnes of toxic substances including heavy metals, dioxins and furans. In addition, they said it would emit 1.17 tonnes of harmful gases such as nitrogen oxides, sulphur oxides, carbon monoxide and hydrogen chloride annually.
According to the organisations, these emissions are associated with cancer as well as cardiovascular and respiratory diseases. They added that experience from Delhi showed waste incineration could worsen urban air pollution rather than reduce it.
The groups also rejected claims that waste incineration should be considered climate-friendly.
They said waste incineration emits between 1.3 and 1.8 kilograms of carbon dioxide per unit of electricity, nearly twice the emissions of coal and around three times those of natural gas. They estimated the North Dhaka Waste-to-Energy Plant would emit approximately 411,392 tonnes of carbon dioxide every year.
BELA Policy Coordinator Barish Hasan Chowdhury said continued investment by international development banks in such an expensive and polluting project was unacceptable at a time when Bangladesh is committed to expanding renewable energy.
He called on AIIB and NDB to immediately withdraw their financial support.
The organisations also questioned whether AIIB had complied with its own Environmental and Social Framework (ESF), which requires meaningful public consultation before project approval.
They said nearly 40% of surveyed residents reported they had never been consulted and that consultations took place only after the project had already been approved.
They also criticised a proposal to reduce the mandatory incineration temperature from 1,000 degrees Celsius to 850 degrees Celsius, saying it was intended to accommodate CMEC’s technical limitations.
Hasan Mehedi and Rayan Hasan, Executive Director of NGO Forum on ADB, jointly said weakening environmental protection laws and air pollution standards to protect the commercial interests of a single company was contrary to the rule of law and the public interest.
The organisations urged the government to immediately cancel the North Dhaka Waste-to-Energy Project in light of its long-term economic, environmental and public health impacts.
They also called for prioritising waste segregation, recycling, composting and organic fertiliser production instead of waste incineration while promoting household waste reduction and community-based waste management practices across Dhaka.
In addition, they demanded comprehensive rehabilitation and livelihood support for all waste pickers who would lose their source of income, the return of land to owners who were unwilling to sell with fair compensation for all affected landowners, the withdrawal of AIIB and NDB financing and the redirection of international financial support towards renewable energy development in Bangladesh.
The organisations said the North Dhaka 42.5 MW Waste-to-Energy Project was not simply an expensive power plant but a long-term threat to Bangladesh’s economy, public health, environment and climate. They urged the government to abandon the project and instead invest in sustainable waste management, recycling, composting and renewable energy solutions that support a just and low-carbon future.
