$2.5b Patuakhali Power Plant Idle Amid Coal Tender Deadlock

Bangladesh’s 1,320 MW coal-fired power plant in Patuakhali, built at a cost of $2.54 billion, is fully constructed but remains idle due to failure in securing a long-term coal supply deal.

Since January 2024, plant operator RPCL-Norinco International Power Ltd (RNPL) floated three tenders, but only Singapore-based Yongtai Energy qualified each time. Officials rejected its bids as “too costly,” raising concerns over a single-bidder monopoly.

Industry insiders claim strict tender conditions discouraged competition and may have favored Yongtai. Requirements such as large mine reserves, output capacity, and a mine-owner commitment letter eliminated most traders. A sudden change in the coal pricing index and lack of a pre-bid meeting added to transparency concerns.

The plant, built by a Chinese consortium, needs a five-year coal deal worth $50–150 million annually. Without it, commercial operations cannot begin, leaving costly infrastructure idle and pushing up maintenance risks.

Authorities are considering relaxing tender terms or opting for short-term contracts. “A $2.5 billion power plant can’t be left idle,” said a top official.