Bangladesh Working Group on Ecology and Development (BWGED) and the Coastal Livelihood and Environmental Action Network (CLEAN) have demanded the immediate cancellation of the proposed 635 MW coal-fired power plant at Matarbari, Maheshkhali, Cox's Bazar, citing environmental, climate, public health, and economic risks.
"The proposal to construct Orion's 635 MW coal-fired power plant under a controversial law and using outdated coal technology is completely illegal. It will impose an additional burden of BDT 30.59 billion in capacity charges on the people," said Hasan Mehedi, Member Secretary of BWGED, at a press conference held at Dhaka Reporters Unity (DRU).
Despite the approval of an Environmental Impact Assessment (EIA) in late 2023, BWGED formally appealed to the Advisor on 30 October 2024 to revoke it. Civil society representatives believe the government still has time and opportunity to cancel Orion's 635 MW coal project in the interest of public welfare, environmental integrity, and economic stability.
Previously, on 12 September 2024, civil society groups demanded that the agreement be scrapped if project deadlines continued to be manipulated.
Under the controversial Bangladesh Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010, the government approved Orion Group's 635 MW coal power project in Gazaria, Munshiganj on 29 September 2013. A Power Purchase Agreement (PPA) was subsequently signed on 21 April 2016 between the Power Development Board (PDB) and Orion Power Unit-2 Dhaka Limited, with a stipulated commissioning deadline of January 2020.
The press conference was co-hosted by Bangladesh Environmental Lawyers Association (BELA), Forum for Environment and Development (FED), Maheshkhali Janosurakkha Mancha, and Songshoptaque.
However, after failing to commence construction, Orion was advised by PDB in February 2022 to relocate the plant to Matarbari or Maheshkhali, extending the project deadline to December 2026.
"Three state-owned banks have jointly committed a loan of BDT 105.79 billion for this coal project. Economist Dr. Ahsan H. Mansur of the Policy Research Institute has opposed the loan, urging a redirection of financing towards renewable energy.
Given the current progress, this power plant cannot be completed before 2026. Any further delay would jeopardize Bangladesh's roadmap to achieving 100 percent renewable energy by 2050. Moreover, relocation has changed variables such as land lease and fuel transportation costs, which should now be lower than stipulated in the original 2016 agreement. These are strong grounds for immediate termination of the PPA," Hasan said, quoting Dr. Ahsan H. Mansur.
On 4 May 2025, a petition signed by 1,085 community members demanding the cancellation of the Orion coal project was submitted to Chief Advisor Dr. Muhammad Yunus. Copies of the petition were also delivered to advisors on energy and environment, the Governor of Bangladesh Bank, and the Cox's Bazar Deputy Commissioner, among others.
A total of 144 civil society organizations, citing environmental, climate, public health, and economic risks, submitted four separate petitions to advisors and officials at the Ministry of Finance, Ministry of Environment, Forest and Climate Change (MoEFCC), Ministry of Power, Energy and Mineral Resources (MOPEMR), and relevant authorities at CPGCBL, urging the cancellation of Orion's power project.
