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Coal shortage halts power generation at Matarbari plant

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Staff Reporter :

Power generation at two units of the Matarbari 1,200 MW coal-fired plant in Moheshkhali, Cox’s Bazar, has been suspended for three days due to a coal shortage.

The plant went offline on Thursday, according to Muhammad Monowar Hossain Mojumder, superintendent engineer (operation) at the Coal Power Generation Company Bangladesh Limited (CPGCBL).

He stated that coal for the plant’s operations was supplied through Japan’s Sumitomo Corporation, under a contract for 2,205,000 tonnes of coal, which ended in August following the final delivery.

With that stock now exhausted, power generation ceased on Thursday, Monowar confirmed.

One of the plant’s two 600 MW units began production in July 2023 and the other in December 2023. Each unit requires around 6,500 to 7,000 tonnes of coal per day.

According to Monowar, CPGCBL was expected to procure coal through a tender process before the Sumitomo contract ended in August.

However, former project director Abul Kalam Azad allegedly delayed the tender process for a three-year coal supply deal by ten months, purportedly to benefit a particular company.

In July, another contracting company raised concerns about these irregularities, leading the High Court to impose a six-month ban on coal imports. Although this ban was later stayed by the Supreme Court, uncertainties around long-term coal import remain.

“Efforts are underway to secure coal imports by the end of November after completing the necessary procedures. Once the coal arrives, power generation will resume,” Monowar added.

The Matarbari 2×600 MW Ultra Super Critical Coal-Fired Power Plant, situated on 1,414 acres across Matarbari and Dhalghata in Cox’s Bazar district, has a total project cost of Tk 51,854.88 crore. Funding sources include Tk 6,406.16 crore from the Bangladesh government, Tk 43,921.03 crore from the Japan International Cooperation Agency, and Tk 1,527.69 crore from CPGCBL.

Since the change of government on 5 August, allegations of corruption regarding construction costs and other aspects of the project have emerged. Additionally, incidents of theft, including valuable items like cables, have been reported.

On 31 August, the Bangladesh Navy intercepted a barge carrying four containers of electric cables worth Tk 15 crore, allegedly being smuggled from the project site. Following this, a case was filed at Moheshkhali Police Station against Abul Kalam Azad and several security officers.

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