A new wave of controversy has emerged over the 1,320 MW Payra Thermal Power Plant as a joint venture involving a disputed company surfaced as the lowest bidder for coal transportation and lightering services.
The joint venture, SAEET-Sinotrans JV, is led by South Asia Energy Engineering and Technology Co. Ltd. (SAEET), a firm previously linked to multiple procurement irregularities.
Industry insiders and officials have voiced concern that SAEET’s participation may violate the Bangladesh Public Procurement Act (PPA) due to a potential conflict of interest tied to its ownership structure and past associations with former state officials.
SAEET is known as the local arm of China National Machinery Import and Export Corporation (CMC), which holds a 50% stake in Bangladesh-China Power Company Limited (BCPCL), the EPC contractor and owner of the Payra power plant.
CMC had earlier secured a 10-year coal and equipment supply deal without competitive bidding.
Wang Ji, the current Managing Director of BCPCL, also holds a senior executive role in SAEET, a clear conflict of interest under Sections 55 and Schedule 9 of the Public Procurement Rules (PPR) 2008.
Allegations of deception in shipping
Further controversy surrounds earlier claims that SAEET misrepresented its shipping capacity in a previous contract.
Though the company submitted documents claiming ownership of specialised vessels, it allegedly failed to use them, instead employing smaller, substandard ships sourced locally, resulting in system losses and higher accident risks.
Sources fear a repeat of these practices under the new contract.
Despite lacking its own fleet, the SAEET-Sinotrans JV, a subsidiary of CMC, is again bidding for work under another CMC-linked entity, raising fresh concerns over fair competition.
At a recent meeting, Bashundhara Multi Trading Ltd (BMTL) has raised question over the conflict of interest surrounding SAEET-Sinotrans JV’s participation in the tender.
Bidders and financial details
According to tender documents, 6-7 companies took part in the bidding for coal transport.
Three were shortlisted. Desh Trading Corporation & Bulk Trade International Ltd (JV) bid Tk5.89 billion, Bashundhara Multi Trading Ltd (BMTL) bid Tk5.76 billion, and SAEET-Sinotrans JV placed the lowest bid Tk5.37 billion.
BMTL has argued that its quoted price includes 20% VAT and tax. If those are excluded, its net bid could be lower than SAEET’s.
Opaque deals and government scrutiny
Sources within the Power Division allege that CMC and its affiliates, including SAEET, previously obtained multiple contracts without open bidding during Nasrul Hamid’s tenure as state minister.
These decisions, reportedly influenced by senior bureaucrats, have raised serious concerns about transparency and the misuse of public funds.
Experts warn that CMC’s dual role, as a power plant co-owner and bidding contractor, poses a serious conflict of interest, undermining competitive procurement.
The issue has gained urgency as BCPCL’s board reviews the lowest bid from SAEET-Sinotrans JV.
Observers note that favouritism and non-competitive tendering in past administrations have contributed to rising electricity generation costs and higher burdens on consumers.
Calls for investigation and reform
Analysts and procurement experts have urged an independent investigation into past and ongoing tenders involving BCPCL, full disclosure of documents related to SAEET and CMC’s participation, and legal review of potential conflicts of interest and undue influence at ministerial and company levels.
They stress that state-owned enterprises and joint ventures must be subject to stricter procurement oversight, particularly where foreign stakeholders are involved.
Without active monitoring by the Central Procurement Technical Unit (CPTU) and the Bangladesh Public Procurement Authority (BPPA), they warn, such irregularities may persist.
A Power Division official said the ministry may seek advice from public procurement authorities before making a final decision on the bid.