Staff Reporter :
The Matarbari Ultra Super Critical Coal-Fired Power Project is facing persistent technical and operational problems that have led to a sharp decline in electricity generation and growing financial losses, officials said following a recent review meeting at the Economic Relations Division (ERD).
Due to unresolved technical disputes and delays in corrective measures, power availability has fallen to 47% for Unit-1 and 53.6% for Unit-2. Officials described the situation as causing “huge financial losses” for the government.
According to the Coal Power Generation Company Bangladesh Limited (CPGCBL), the plant has been struggling since early this year with severe ash slagging and fouling inside the boilers, significantly limiting operational capacity. Despite repeated requests, the Engineering, Procurement and Construction (EPC) contractor-Sumitomo-Toshiba-IHI Consortium (STIC)-has failed to take effective steps to restore full functionality.
The review meeting also highlighted deficiencies in auxiliary systems, noting that cooling-water pumps in both units have underperformed since commissioning. Financial concerns were also raised after STIC sought a 15.69% price adjustment, a proposal already rejected by the project consultant.
These issues were discussed at a high-level ERD meeting held on 11 November, chaired by ERD Secretary Shahriar Kader Siddiky. While the contractor informed the meeting that a detailed technical report was being prepared, government officials stressed the urgency of stabilising plant operations.
Progress has been further delayed by disagreements over the root causes of the failures. STIC has attributed the boiler damage to poor-quality coal, but tests conducted by the Matarbari Joint Venture Consultant reportedly found no significant coal quality issues. The contractor has proposed a Tk135 crore rectification plan requiring 21.5 months to complete, though responsibility for funding remains unclear under contractual provisions.
CPGCBL has called for a comprehensive Root Cause Analysis and insisted that the issue be addressed under the Defect Notification Period. Although STIC agreed in October 2025 to carry out such an analysis, no subsequent action has been taken.
When tried to get comments over telephone, CPGCBL Managing Director Md Nazmul Haque declined to comment.
Meeting minutes indicate that it was decided the contractor, boiler manufacturer and independent experts would urgently visit the plant to identify the actual causes and corrective measures. Repairs are expected to be carried out at the contractor’s expense, with a time-bound action plan to be prepared with assistance from Jica to complete repairs on both units within the stipulated period.
The Matarbari Ultra Super Critical Coal Power Project, launched in 2014 at a cost of Tk56,693.90 crore, is largely financed by a Tk47,945 crore loan from Jica.
Concerns over other Jica-funded projects
The ERD meeting also reviewed several other major Jica-funded projects facing challenges, including the Jamuna Railway Bridge and the third terminal of Hazrat Shahjalal International Airport.
Japanese representatives reportedly expressed concern over the absence of a dedicated post-completion maintenance plan for the Jamuna Railway Bridge, warning that this could jeopardise its long-term safety. The bridge project, which began in 2016, carries an estimated cost of Tk16,781 crore, with Tk12,149 crore financed by Jica.
Railway Secretary Md Fahimul Islam declined to comment, referring queries to the project director, who could not be reached.
Meanwhile, the airport’s third terminal project continues to suffer from implementation and payment delays due to disputes between the Civil Aviation Authority of Bangladesh and the Japanese joint-venture contractor, Aviation Dhaka Consortium. A Dispute Board formed in September 2025 has yet to deliver rulings required to process pending payments.
The Chief Representative of Jica Bangladesh also raised concerns over unpaid consultant bills for the past two years, attributing the delays to stalled approval of the Revised Development Project Proposal.
Initiated in 2016 at an estimated cost of Tk21,399 crore-including a Tk16,141 crore Jica loan-the third terminal remains incomplete and unopened, largely due to the failure to appoint an operator.
