Bangladesh’s flagship coal-fired thermal power project, the Matarbari Power Plant, is mired in deep crisis due to the continued supply of substandard coal, threatening both power generation and the integrity of the plant’s sophisticated Japanese-built machinery.
The 1,200 MW capacity plant in Maheshkhali upazila, Cox’s Bazar, once hailed as a milestone in the nation’s energy security, is now operating at less than half capacity. Unit 2 has been completely shut down since September 5, while Unit 1 is struggling to produce only 300 MW instead of its rated 600 MW, industry insiders confirmed.
Officials, engineers, and laborers told The Daily Industry that the crisis stems from repeated consignments of coal mixed with stone, clay, and soil - a practice that has become routine since early 2024. Despite workers’ protests and widespread criticism, the problem remains unresolved, with allegations of corruption and cover-up clouding the procurement and delivery system.
Substandard Coal Shipments Create Chaos: The latest scandal unfolded between September 23 and 26, when the Liberian-flagged vessel Lilafuji unloaded 63,300 tons of coal imported from Indonesia. At first glance, the surface layer of coal appeared normal. But as unloading continued, workers discovered huge stone chunks, mud-laced fragments, and oversized particles instead of the promised 2-inch (50 mm) standard coal.
“It is not coal; it’s almost like unloading garbage,” one worker told The Daily Industry on condition of anonymity. “Every shift, we spend hours separating stones and mud instead of just moving coal. The machines break down, the belts tear, and the boilers choke.”
More than 120 workers, operating in three shifts, report being forced to handle coal mixed with dirt. Those who raise concerns allegedly face intimidation from plant authorities.
“Workers are harassed and even threatened for speaking up,” said another laborer. “Security around unloading has been tightened so that no information leaks out. But everyone knows the truth - the plant is dying from inside.”
Management Denial: When contacted by The Daily Industry on Thursday evening, Chief Engineer Saifur Rahman denied receiving any report of substandard coal from the official inspection committee.
“We have a separate committee to examine coal quality, and they have not informed me of such issues,” he said. However, he did confirm that one unit of the plant has been shut down since September 5 due to operational stress.
His cautious remarks have raised suspicions among experts and the local community that the authorities are deliberately downplaying the crisis.
Local Outrage: Local residents, whose land was acquired for the mega-project, say they are shocked by the level of mismanagement. Alauddin, acting chairman of the Matarbari Union Parishad, told The Daily Industry: “We sacrificed land and livelihoods for this project. But all we see now is corruption, irregularities, and looting. The plant has become a silent victim of vested interests left behind by the previous regime. Unless there is an independent investigation, the country risks losing one of its most expensive energy assets.”
He demanded immediate intervention from the interim government to probe coal procurement and punish those responsible for supplying substandard fuel.
Machinery at Risk: Plant engineers emphasized that the problem lies not in the equipment, but in the fuel. “This plant is equipped with advanced Japanese technology. The machinery is flawless. The only problem is the poor quality coal,” said a senior engineer. “If proper coal is supplied, the plant can easily produce 1,200 MW consistently. But bad coal is destroying the boilers and systems.”
According to experts, the plant needs 10,000 tons of coal daily for both units to operate at full capacity, or 3 million tons monthly. A contract with Meghna Group and an Indian company ensured annual supply of 3.5 million tons from Indonesia, but engineers claim that profit-driven manipulation of quality is the root of the crisis.
“Indonesian mines have both high-grade and low-grade coal. Good coal costs more. To maximize profits, suppliers are sending poor-grade coal mixed with mud and stones. As long as this continues, the plant will remain crippled,” another engineer said.
A Recurring Scandal: This is not the first time Matarbari has faced such a scandal. On March 17, 2024, a Singaporean vessel, MV Orient Orchid, delivered 63,000 tons of coal, of which 22,350 tons were filled with mud and stone. The incident triggered nationwide uproar after workers halted unloading in protest. Eventually, the remaining 40,650 tons were sent back.
Despite that scandal, no structural reform in coal procurement was made. Since then, almost every shipment has shown similar problems, insiders revealed.
The Daily Industry View: Energy analysts quoted by The Daily Industry argue that the Matarbari debacle is symptomatic of deeper governance failures.
Dr. Shahadat Hossain, an energy policy expert, said: “This is not just about bad coal. It is about a culture of corruption where oversight is absent, accountability is weak, and whistleblowers are punished. When billions of dollars of public money are at stake, such negligence is criminal.”
Dr. Rehana Akter, a senior researcher on power sector reforms, added: “The Matarbari plant was supposed to be Bangladesh’s pride. Instead, it is becoming a liability. Substandard coal is damaging high-end Japanese machinery. If this continues, the plant may face permanent technical collapse.”
Workers and Engineers Silenced: Workers allege that plant authorities want to “cover up” every case of bad coal. According to multiple testimonies, laborers who reported issues faced disciplinary threats.
One anonymous engineer told The Daily Industry: “We are under pressure not to speak. But the truth is clear - Unit 2 has been shut for three weeks because the machinery couldn’t handle the poor coal. Unit 1 is barely running at half capacity. Unless quality coal is supplied, both units will collapse.”
Contract and Supply Disputes: According to the existing agreement, Meghna Group and its Indian partner are tasked with importing Indonesian coal for Matarbari. Their contract, worth billions, is now nearing expiry.
Insiders suggest that the government is reluctant to cancel or renegotiate the deal despite repeated failures, due to strong lobbying from vested interests. This contract is politically protected. That’s why bad coal keeps coming in. Until this contract is restructured, nothing will change,” said an energy insider.
Government Responsibility: Despite repeated crises, the government has not announced any official investigation. The Power Division has remained silent, while the Coal Power Generation Company Bangladesh Limited (CPGCBL), which operates the plant, has not held any public briefing.
“The silence of the authorities is alarming,” said Dr. Iftekharuzzaman of TIB in a statement shared with The Daily Industry. “One of the largest infrastructure projects of Bangladesh cannot be allowed to rot because of corruption and mismanagement. The government must explain why monitoring has failed.”
Future at Risk: Commissioned in December 2022 (Unit 1) and August 2023 (Unit 2), the Matarbari Power Plant was projected as a cornerstone of Bangladesh’s energy future. For months after launch, it delivered full capacity with high-quality coal, providing a rare glimpse of stable electricity generation.
But now, with one unit shut and the other limping, the project is fast turning into a burden. “If this continues, Matarbari could become another failed mega-project,” warned economist Debapriya Bhattacharya, speaking separately on energy governance. “A 1,200 MW plant running at 300 MW because of bad coal is a national tragedy.”
The Daily Industry Conclusion: The Matarbari scandal reflects systemic corruption in coal imports, failure of oversight, and institutional silence. Unless urgent action is taken, Bangladesh risks losing one of its most strategic energy projects, leaving both taxpayers and electricity consumers to bear the cost.
The Daily Industry urges the interim government to: Launch an independent inquiry into coal procurement. Suspend contracts with suppliers delivering substandard coal.
Protect whistleblowers among workers and engineers. Ensure transparency in reporting plant operations to the public. For the people of Matarbari, who gave up their land and livelihoods, and for the nation depending on stable power, accountability is no longer a choice - it is an imperative.
