The Bangladesh Power Development Board (BPDB) on Sunday has opposed a request from Adani Power Limited (APL) for the appointment of an expert to oversee a mediation process under Section 19.3(b) of the Power Purchase Agreement (PPA) signed on November 5, 2017.
In a letter sent to the Registrar of the Singapore International Arbitration Centre on November 2, 2025, BPDB said APL’s request, dated October 30, 2025, for initiating mediation was “premature and inappropriate” given the complexity of the ongoing dispute and related investigations ordered by the High Court of Bangladesh.
The letter signed by BPDB Director of the Coal Power Generation Maksudur Rahman and BPDB secretary Rashedul Hoque Prodhan noted that mediation under Section 19.3 of the PPA is an optional and non-binding process. According to BPDB, the relevant clauses of the agreement—particularly Sections 19.3(a) and 19.3(h)—do not make the expert’s determination final, allowing either party to proceed to arbitration under Section 19.4 if necessary.
BPDB further stated that in addition to the current dispute raised by APL, a separate potential dispute is under investigation following allegations of serious irregularities linked to the original PPA.
These issues, the agency said, are factually complex and directly connected to APL’s request for mediation.
Citing its correspondence with APL, including a letter dated October 5, 2025, BPDB emphasised that relevant government agencies are still conducting inquiries as directed by the High Court. It argued that proceeding with mediation now would likely be a “wasteful exercise of time and cost.”
BPDB also warned that if the Registrar proceeds with the appointment of an expert despite its objections, the Board “will not bear any related costs,” stating that any expenses should be covered solely by APL or the appointed expert.
BPDB added that it may seek to resolve the dispute “through other means in a different forum” once the facts are fully established.
In response at a press conference to about whether the Adani deal was being cancelled, the Power and Energy Adviser Muhammad Fouzul Kabir Khan on Sunday said, “There is a specific procedure that must be followed to terminate any agreement. A deal may be cancelled with or without cause, but if it is terminated without cause, a predetermined amount of compensation must be paid.”
Talking about the issues, BPDB Chairman Rezaul Karim said on Monday, “I cannot comment at this moment… just wait and see.”
BPDB officials proposed Adani to review coal pricing formula with that used for the 1,320 MW Payra power plant. However, Adani rejected the proposal, citing fixed terms under the existing PPA.
The interim government’s high-powered national committee tasked with reviewing power purchase agreements (PPAs) signed during the previous Awami League administration has submitted its initial report to the Ministry of Power and Energy on Sunday, revealing extensive irregularities and governance failures to sign PPA with Adani and others under special power act.