A major tender scandal has surfaced inside Power Grid Company of Bangladesh (PGCB), where senior officials are accused of manipulating the international bidding process to award the Narsingdi Madhabpur–Monohardi substation project to a blacklisted company. Despite a board decision in 2025 banning Energypac Engineering Limited from all PGCB tenders until 2028 for severe negligence and financial irregularities, insiders allegedly helped the firm re-enter under a joint venture with a little-known local company, Rivary Power and Automation Engineering.

The scheme reportedly sidelined several leading Chinese state-owned firms that had submitted bids, prompting concerns of diplomatic strain between Bangladesh and China. A Chinese company, CMC, has formally written to the Power, Energy and Mineral Resources Minister, alleging bias and demanding suspension of the tender and an independent investigation. A top security agency has also begun probing the alleged masterminds and hidden financial transactions.

Officials fear the controversy could damage Bangladesh’s credibility with international partners such as the Asian Development Bank and World Bank, both financiers of the project, and jeopardize future foreign investment in the power sector.