Power authorities pursue direct coal purchases for Payra plant despite a High Court order, sparking concerns over transparency, governance and respect for judicial rulings in Bangladesh’s energy sector policy failures.
Bangladesh’s power authorities have moved to bypass a High Court order by pursuing direct coal purchases for a major coal fired power plant in Patuakhali, raising fresh concerns over transparency, governance and respect for judicial rulings in the country’s energy sector.
The move involves the RNPL RPCL NORINCO coal fired power plant, a Bangladesh China joint venture, where authorities are now preparing to procure coal through the Direct Procurement Method and spot purchases. This comes despite a clear High Court directive to award the long term coal supply contract through an international open tender process to a technically and financially qualified bidder.
Over the past three and a half years, RNPL has floated four international tenders for long term coal supply but failed to complete the procurement process. In the fourth tender, Singapore based Yangthai Energy was evaluated as technically and financially qualified. However, without providing any publicly stated or legally justified reason, RNPL cancelled the tender and decided to re invite bids.
Challenging that decision, Yangthai Energy filed a writ petition. On November 30, the High Court declared the tender cancellation illegal and directed the authorities to issue a Notification of Award in favour of the company. The verdict was final. Instead of implementing the ruling, the power authorities have now moved ahead with alternative procurement plans.
According to sources, the push for direct procurement gained momentum after another Singapore based firm, Jinhe Global Commodity Supply Chain, expressed interest in supplying coal directly from mines at prevailing prices. On November 24, the company wrote to Power Adviser Muhammad Fouzul Kabir Khan with a proposal for direct coal supply. On January 4, the adviser forwarded the letter to the Power Division secretary with instructions to review the matter.
However, industry insiders point out that Jinhe Global’s local representative, Redsun Agrosim BD, has no proven experience in coal supply, raising further questions about due diligence and procurement transparency.
At RNPL’s 68th board meeting on December 10, multiple coal procurement decisions were approved, including an initiative to assess the feasibility of importing coal directly from Indonesian mines. A six member committee was formed for this purpose and preparations are underway for an official visit to Indonesia.
Bangladesh remains heavily dependent on imported coal to fuel several large power plants, making procurement decisions critical for public spending, electricity tariffs and long term energy security. Any deviation from competitive bidding processes carries significant financial and governance implications.
Environmental activist groups warn that disregarding court verdicts and bypassing transparent procurement processes could weaken investor confidence, increase fuel costs and undermine governance standards in Bangladesh’s power sector at a time when the country is seeking greater foreign investment and energy sector reform.
Raising broader concerns, Sohanur Rahman, Executive Coordinator of YouthNet Global, said the issue goes beyond coal procurement and reflects deeper challenges in accountability. “When court rulings are ignored and competitive procurement is bypassed, it weakens public trust and sends the wrong signal to citizens and international partners alike. At a time when Bangladesh is facing climate vulnerability and economic pressure, transparency and rule of law must be non negotiable,” he said.
Defending the move, Power Adviser Muhammad Fouzul Kabir Khan said a writ petition related to the issue remains under consideration and repeated tenders had failed to result in a contract. “To keep the power plant running, we have no option but to approve the import of a small quantity of coal as a temporary measure,” he said.
Energy governance experts have strongly criticised the approach. Professor Shamsul Alam, energy adviser to the Consumers Association of Bangladesh, said the move reflects a pattern of bypassing competition. “Once again, coal is being procured without competitive bidding. This is unacceptable,” he said.
