A major controversy has arisen over the coal transportation and lightering service tender at the 1,320-megawatt Payra Thermal Power Plant in Patuakhali, after a controversial company became the lowest bidder.
According to sources, South Asia Energy Engineering and Technology Company Limited (SAEET) has topped the list as the lowest bidder under the name SAEET–Sinotrans JV. The company’s selection has triggered debate, as SAEET is alleged to be linked to a network involving former state minister Nasrul Hamid Bipu of the now-defunct Hasina government, in violation of the Bangladesh Public Procurement Act.
Sources said SAEET is the local Bangladeshi arm of China National Machinery Import and Export Corporation (CMC) — the Chinese parent company that jointly owns Bangladesh-China Power Company Limited (BCPCL), which operates the Payra power plant.
CMC, as a co-owner of the plant, allegedly secured a 10-year, non-tendered contract to supply coal and spare parts to Payra Power Plant during the tenure of former state minister Nasrul Hamid Bipu.
Reports suggest the deal was awarded in violation of procurement rules, facilitated by former Principal Secretary Ahmad Kaikaus and then BCPCL Managing Director Mohd Khorshed Alam, with the intention of benefiting CMC and its affiliates.
Investigations revealed that Wang Xin, the current Managing Director of BCPCL, also serves as an executive and key controlling official of SAEET — a clear case of conflict of interest, prohibited under Sections 55 and Schedule 9 of the Public Procurement Rules (PPR) 2008.
Sources alleged that CMC exploited this privileged position to overprice coal and spare parts, leading to higher production costs at the power plant — costs that are ultimately being passed on to consumers.
CMC’s alleged irregularities also extend to the coal lightering process — the transfer of imported coal from deep-sea vessels to the power plant.
In a previous tender, SAEET had claimed ownership of specialised vessels for coal transportation, but failed to bring such vessels from China to Bangladesh. Instead, it reportedly used smaller, low-capacity local ships, causing operational losses and frequent accidents.
According to insiders, the same company is attempting a similar strategy again. Despite lacking its own vessels, SAEET — a subsidiary of CMC — has participated in another CMC subsidiary’s tender process, effectively trying to profit from interlinked companies under the same parent organisation.
There are allegations that during the tenure of former BCPCL managing director A M Khurshedul Alam and former state minister Nasrul Hamid Bipu, SAEET and associated Chinese companies received multiple direct contracts without open tender, in violation of procurement rules.
These irregularities reportedly caused cost inflation in coal supply and lightering services, driving up electricity generation expenses.
Ministry sources confirmed that CMC’s local subsidiary, SAEET–Sinotrans JV, emerged as the lowest bidder for the coal supply contract at the Payra Power Plant, despite CMC already owning 50% of BCPCL — the tendering authority itself.
A total of six to seven companies participated in the tender, of which three were shortlisted. Desh Trading Corporation and Bulk Trade International Ltd (JV) submitted a bid of Tk 589.82 crore, Bashundhara Multi Trading Ltd (BMTL) offered Tk 575.76 crore, and SAEET–Sinotrans JV emerged as the lowest bidder with a bid of Tk 537.46 crore.
Experts said that the participation of SAEET–Sinotrans JV — a Bangladeshi subsidiary of CMC — in a tender floated by a company half-owned by CMC, creates a direct conflict of interest between the buyer and supplier.
When contacted, Md Nazmul Haque, Managing Director of Coal Power Generation Company Bangladesh Ltd, said: “Our board is reviewing the matter. The lowest rate is our primary consideration. Whatever the board decides will be final.”
BMTL, in its financial proposal, stated that its quoted price included 20% VAT and tax. If the taxes are excluded, its effective bid price would be 20% lower, making it cheaper than SAEET’s bid.
Regarding this claim, Nazmul Haque said: “There is no scope to go beyond the tender document. If VAT and tax are addressed within the document, they will be evaluated accordingly.”
However, Bangladesh-China Power Company Limited (BCPCL) is a joint venture between Bangladesh’s North-West Power Generation Company Limited and China’s CMC. The company constructed and operates the 1,320 MW Payra Thermal Power Plant.
Allegations have also surfaced that during the previous administration, several top officials and policymakers in the Power, Energy and Mineral Resources Ministry enabled CMC and its subsidiaries to secure multiple government projects either without open tender or through limited competition.
Observers note that during the tenure of the former state minister and related officials, there was a trend of favoring certain contractors, particularly foreign ones, which affected transparency and competitiveness in major infrastructure projects, including Payra Power Plant.
Analysts argue that stronger safeguards are needed to prevent conflicts of interest and undue influence in state-owned joint ventures with foreign partners.
They recommend regular audits and independent investigations into past tenders, along with stricter monitoring by the Central Procurement Technical Unit (CPTU) and the Bangladesh Public Procurement Authority (BPPA). Experts also emphasized the need for full public disclosure of tender documents and ownership links between bidders and project authorities.
Preliminary investigators have also recommended a comprehensive review of all current and past tenders under BCPCL, including SAEET and CMC’s participation records, and legal verification of any possible influence or violations of procurement laws.
Experts have urged the formation of an independent and neutral investigation committee to ensure transparency in state expenditures, promote good governance in the power sector, and restore public confidence in Bangladesh’s procurement system.
Bd-pratidin English/FNC
