The recent approval of the Environmental Impact Assessment (EIA) report for Orion Group’s proposed 635 MW coal-fired power plant in Matarbari, Maheshkhali, Cox’s Bazar has sparked widespread opposition from civil society groups, environmental organizations, and local communities. Bangladesh ratified the Paris Climate Agreement in 2016, committing to move away from coal and fossil fuels in favor of renewable energy. The United Nations’ Sustainable Development Goals (SDGs) similarly stress the need to reduce reliance on fossil energy.

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Under the controversial Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, the Orion Group was granted approval on 29 September 2013 to establish the 635 MW coal plant in Gazaria, Munshiganj. Subsequently, a Power Purchase Agreement (PPA) was signed between the Power Development Board (PDB) and Orion Power Unit-2 Dhaka Ltd. on 21 April 2016. According to the PPA, electricity generation was scheduled to begin within 45 months by January 2020. However, Orion failed not only to begin operations but even to start construction. In February 2022, the PDB proposed relocating the project to Matarbari and extended the deadline to December 2026. Most recently, in July 2024, the deadline was again extended to December 2030. Without this extension, the contract would have been automatically voided.

 

On 6 September 2024, with the support of BWGED, civil society representatives organized a campaign in central Chattogram, calling for the cancellation of Orion's 635 MW coal-fired power project. See Here​

With the support of BWGED, civil society representatives held a press conference on 12 September 2024, urging the Chief Adviser, Energy Adviser, and Environment Adviser to revoke the extension and cancel the project.  See Here

 

The government also announced a joint loan of BDT 10,579 crore for the Orion coal project through three state-owned banks. However, experts at the hearing argued that completing this project by 2026 is entirely unrealistic. If constructed beyond that timeline, it would jeopardize Bangladesh’s plan to achieve 100% renewable energy by 2050. Moreover, relocation has changed variables such as land lease and fuel transportation costs, both of which should now be lower than stipulated in the original 2016 agreement. These are strong grounds for immediate termination of the PPA.

 

On 1 March 2025, local communities organized a human chain in Matarbari demanding cancellation of the Orion plant. The project’s Environmental Impact Assessment (EIA) was reportedly approved by the end of 2023. Prior to that, on 30 October 2024, BWGED formally petitioned the Environment Advisor to revoke the EIA approval.   See Here

 

On 4 May 2025, a mass petition signed by local residents demanding the project's cancellation was submitted to the Honorable Chief Advisor Dr. Muhammad Yunus. Carbon Copies (cc) of the petition were also sent to the relevant Energy and Environment Advisors, the Governor of Bangladesh Bank, and the District Commissioner of Cox’s Bazar. See Here

 

That same day, BWGED led a national-level submission to four different authorities, including the Ministries of Finance; Environment, Forest, and Climate Change; Power, Energy, and Mineral Resources; and the state-owned power company CPGCBL. A total of 144 Civil Society Organizations (CSOs) signed the appeal, citing serious risks to public health, climate, environment, and the economy. See Here

 

As a continuation of these advocacy efforts, on 6 May 2025, BWGED and CLEAN organized a press conference at the Dhaka Reporters Unity (DRU), where civil society representatives once again demanded immediate cancellation of the Orion 635 MW coal project. [See Here]

As a continuation of earlier efforts, on 10 May 2025, local residents and civil society representatives renewed their strong call for the cancellation of Orion Group’s proposed 635 MW coal-fired power plant in Matarbari, Cox’s Bazar. More than 400 community members—including farmers, fisherfolks, salt producers, and shrimp cultivators gathered at a public hearing in Matarbari to voice their concerns and demand the withdrawal of the project. The hearing was jointly organized by the Bangladesh Working Group on Ecology and Development (BWGED) and the Coastal Livelihood and Environmental Action Network (CLEAN), in collaboration with Bangladesh Environmental Lawyers Association (BELA), JET-Net BD, Forum for Ecology and Development (FED), Maheshkhali Jonoshurokkha Moncho, and Songshoptaque. 

​At the conclusion, the chair of the hearing collectively endorsed the local demands and issued a symbolic ruling in favor of cancelling the power plant. They emphasized that any development project based on fossil fuels must prioritize the voices of local communities and environmental considerations. They affirmed that the government still has ample time and opportunity to cancel the Orion coal power plant immediately in the interest of public welfare, environmental sustainability, and national economic resilience. [See Here]

 

After a continuous campaign, on 27 May 2025, it was announced by Nazmul Haque, Managing Director of Coal Power Generation Company Bangladesh Limited (CPGCBL), that the land lease given to the coal power project of the Orion Group had recently been cancelled by their board of directors [See Here]. The cancellation of the land lease for Orion’s 635 MW coal power project in Matarbari stands as a powerful victory for CLEAN and BWGED, who have long led a determined and sustained campaign against the destructive impacts of coal-based energy in Bangladesh. Through continuous community engagement, evidence-based advocacy, and pressure on policymakers, these organizations have highlighted the environmental, social, and economic risks of the project. This outcome reflects the strength of collective resistance and underscores the urgent need to shift toward a just, renewable energy future that prioritizes people and the planet over profit. 

 

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