The Coal Power Generation Company Bangladesh Limited (CPGCBL) is preparing to unload over 40,000 metric tonnes of coal from the Singapore-flagged vessel Orient Orchid, which has returned to Matarbari port after being anchored for 62 days in the Moheskhali deep sea.
The coal had previously been rejected on March 21 due to quality concerns, officials confirmed.
The shipment was imported for the 1,200MW ultra-supercritical Matarbari Coal-Fired Power Plant through a joint venture between Unique Cement Industries Limited (UCIL), a concern of Meghna Group, and Indian conglomerate Aditya Birla Global Trading (Singapore) Pte. Ltd (AGBT).
The joint venture has now requested CPGCBL to unload the coal after removing substandard materials. “We have allowed them to deliver the coal without payment, contingent upon receiving a compliance certificate from BUET,” said a CPGCBL official on condition of anonymity.
However, payment will only be made after assessing the operational losses caused by the shipment’s rejection.
The scandal came to light when the 11th coal shipment, containing 49,000 tonnes, arrived on March 19 and was found to contain unusual stones, mud, and reddish materials.
According to Kazi Md. Miraj Hossain, Company Secretary of the Matarbari Power Plant, the coal also had high water content and large foreign materials, which disrupted plant operations and posed a risk to critical equipment.
“The coal’s water content increases boiler consumption, while large foreign particles disrupt the conveyor scraper, unloader, and screen operation,” he stated in a letter to the Power Division.
The project’s EPC contractor warned that using the substandard coal could void the plant’s warranty. A CPGCBL proposal to manually remove the foreign materials was deemed impractical due to the plant’s unloading system design.
Investigation Underway
In response, the Power Division formed a probe committee on March 24, 2025. Although the committee has submitted its findings, the report has yet to be made public.
CPGCBL confirmed that representatives from UCIL and AGBT inspected the shipment on March 19 and admitted to a quality control failure at the loading port during a meeting the next day. CPGCBL has also proposed imposing demurrage charges for potential damage to unloading equipment.
Government and Expert Reactions
Power Division Secretary Farzana Momtaz told Just Energy News that no special permission was granted for unloading the substandard coal. “CPGCBL is an individual entity. We are not providing any approval to unload poor-quality coal,” she stated.
Earlier, Power and Energy Adviser Muhammed Fouzul Kabir Khan said the shipment was returned immediately but acknowledged that no harsh action was taken due to the country’s electricity demand during summer. “I’ve asked the Power Division to conduct a thorough investigation,” he added.
Energy experts have criticized the government’s lenient stance. Prof. Ijaz Hossain, former dean of BUET, urged the authorities to blacklist the suppliers and ensure a full investigation. “With the rising coal demand, this cannot be ignored,” he said.
Prof. M. Shamsul Alam, energy adviser at the Consumer Association of Bangladesh (CAB), demanded the immediate cancellation of the coal supply agreement and legal action against those responsible. “If the government fails to act, CAB will pursue the case in court,” he warned.
Broader Implications
Bangladesh has a coal-based electricity generation capacity of 5,503MW out of a total installed capacity of 26,906MW. Among its coal-fired plants, only the 1,320MW Payra plant has a direct coal procurement deal with a mine. The government is also planning to install a second 1,200MW unit at the Matarbari site.
Efforts to contact Meghna Group Chairman Mostafa Kamal for comments were unsuccessful.
As the investigation continues, experts and watchdogs are calling for increased oversight and accountability to prevent similar incidents in the future.