The Power Division of Bangladesh is preparing to initiate a new bidding process to select a fresh coal supplier for the 1,200MW Ultra Super Critical Coal-Fired Power Plant in Matarbari. This decision follows the discovery of substandard coal supplied by a consortium of Bangladesh’s Unique Cement Industries Limited, a concern of Meghna Group, and Aditya Birla Global Trading (Singapore) Pte Ltd.
A joint committee comprising representatives from the Coal Power Generation Company Bangladesh Limited (CPGCBL), the Power Development Board (PDB), and the Power Division has been formed to investigate the issue. The committee is responsible for hearing the supplier’s explanation, examining the quality of past and future coal shipments, and preparing for a fresh procurement process.
The move came after the 11th shipment, delivered on 17 March, was found to be contaminated with soil and was subsequently rejected by CPGCBL. The supplier had been providing coal since November 2024 from a mine in Indonesia owned by Aditya Birla.
CPGCBL reported raising concerns about coal quality over a dozen times. The company said the poor-quality coal was affecting the plant’s efficiency.
“We formed a joint committee to review the Matarbari coal issue,” said Muhammad Fouzul Kabir Khan, Adviser to the Power, Energy, and Mineral Resources Ministry. “Once we hear from the supplier, we will make a final decision. Meanwhile, preparations for new bidding are in progress.”
Previously, the Power Division formed a separate three-member probe body, which recommended coal testing at the unloading site—something not specified in the original contract. It also suggested visiting the Indonesian coal mine to verify sourcing and conducting tests on earlier coal shipments.
“We have introduced new mechanisms to ensure coal quality, which were not included in the original deal,” said Power Division Secretary Farzana Mamtaz. “We are waiting for the test reports before making a decision.”
CPGCBL Managing Director Nazmul Haque stated that repeated complaints to the supplier had gone unaddressed. “If poor-quality coal keeps arriving, the plant’s operation will be at serious risk since we currently depend on a single supplier,” he warned.
According to the original tender, the coal must have a gross calorific value between 4,400 and 5,000 kcal/kg. Other specifications include ash content at 13%, sulfur at 0.8%, carbon content between 38% and 60%, moisture content at 30%, and coal size ranging from 5mm to 30mm.
Due to quality concerns, CPGCBL has withheld 10% of payments for all ten earlier shipments. “We suspect the coal doesn’t meet required standards,” said Depayan Paul, Superintendent Engineer (Procurement).
The 11th shipment, which the supplier claimed had a calorific value of 4,821 kcal/kg, was rejected after it was found to be mixed with stone, mud, reddish particles, and excess water. The Chittagong Port Authority was unable to unload the coal smoothly, as the unloading belt frequently jammed and broke down.
Saifur Rahman, Chief Engineer at the Matarbari plant, dismissed the calorific value claim as “absurd” and said they were awaiting lab results for confirmation.
When contacted, Tarun Maru, Sales and Marketing Specialist at Aditya Birla Global Trading, declined to comment on the issue.
The consortium had signed a deal in 2023 to supply 3.5 million tonnes of coal over 12 months, starting in November 2024. So far, only 650,000 tonnes have been delivered.
Related Topics:
- Can a Gas Leak Smell Like Sewage?
- Should a Gas Meter Smell? A Detailed Guide
- How to Detect a Gas Leak in Your Basement: A Comprehensive Guide