Expanding Foreign Investment in the Energy Sector Challenges and Risks For Bangladesh?

A recent project under the CMI-CPD institutional collaboration agreement has looked at the effect of corruption on investment in the energy sector. A distinction is made between the extraction of energy resources (extractive industry FDI) and the provision of energy (energy utility FDI). Nearly 90 per cent of the country’s power is currently generated from gas while less than 5 per cent is generated from coal. By 2021, Bangladesh aims to get more than 50% of its power from coal. Below, we present an overview of FDI inflows to Bangladesh, and then turn to our results on the effect of corruption on FDI in the extractive and energy utility industries.