TRW & Co · Investment, Economic Zones & Projects
Energy and Power Project Lawyer in Chittagong (Chattogram)
An energy and power project lawyer in Chittagong helps developers, contractors, lenders and industrial users with permits, land, power purchase and fuel supply agreements, EPC contracts, financing and disputes. With the 2010 special power law repealed, BERC's public-hearing role restored and PPP projects moving to the Invest Bangladesh Authority, the rules for energy projects in 2026 differ sharply from five years ago.
Key pointContracts awarded under the repealed 2010 special power law remain valid for the period before repeal, but the government kept a right to review them, so sponsors and lenders should map which agreements came from that regime and how their change-in-law clauses would respond.
At a glance
2010 special law repealed
After the High Court Division struck down two provisions in November 2024, the interim government repealed the 2010 special power and energy supply law by ordinance.
BERC hearings restored
A gazette of 27 August 2024 removed the government's executive power to set energy prices, returning price proposals to BERC public hearings.
Renewables target
The Renewable Energy Policy 2025 aims to meet at least 20 per cent of power demand from renewable sources by 2030, with tax incentives.
New procurement rules
The Public Procurement Rules 2025 took effect on 28 September 2025, making e-GP mandatory and requiring beneficial ownership disclosure.
PPP under new authority
The Invest Bangladesh Act 2026 merged the PPP Authority, BIDA and BEZA into one body and repealed the Public Private Partnership Act 2015.
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What energy, power and EPC project law covers in Chattogram
An energy and power project lawyer in Chittagong advises developers, lenders, contractors, equipment suppliers, industrial users and public bodies on building, financing and operating energy infrastructure: power plants, captive generation, solar and other renewables, gas supply, LNG and fuel import facilities, transmission links and the EPC contracts that deliver them. The work combines regulatory approvals, land, environment, procurement, construction contracts, finance and dispute resolution.
Greater Chattogram sits at the centre of Bangladesh's energy import chain. LNG reaches the grid through the floating terminals off Moheshkhali, crude oil and diesel reach the Eastern Refinery in Patenga through the single point mooring and its pipelines, and large coal-fired plants operate at Matarbari and Banshkhali. The economic zone belt at Mirsarai and Anowara, the port and the city's steel, cement and textile industries all depend on reliable power and gas.
Energy work becomes a legal question at every stage: when a developer secures land and permits, when a power purchase agreement or gas supply contract is negotiated, when an EPC contractor claims more time or money, when a tariff or payment dispute arises, and when the law itself changes, as it did when the special power law of 2010 was repealed in 2024.
The legal and regulatory framework
Core statutes
- Electricity Act 2018: the Electricity Act 2018 replaced the colonial-era 1910 Act and governs the generation, transmission, distribution and supply of electricity, licensing and safety.
- Bangladesh Energy Regulatory Commission Act 2003: establishes BERC, which licenses energy businesses and determines tariffs for electricity, gas and petroleum products through a public process.
- Sustainable and Renewable Energy Development Authority Act 2012: creates SREDA to promote renewable energy and energy efficiency.
- Environment Conservation Act 1995 and the Environment Conservation Rules 2023: power plants and fuel facilities are generally high-risk categories requiring location clearance, impact assessment and environmental clearance from the Department of Environment.
- Acquisition and Requisition of Immovable Property Act 2017: governs compulsory acquisition of land for public projects and compensation to owners.
- Public Procurement Act 2006: governs procurement by public bodies, now with the Public Procurement Rules 2025.
- Arbitration Act 2001: governs domestic and international arbitration seated in Bangladesh and enforcement of foreign awards.
The end of the 2010 special power law
For over a decade many power and energy contracts were awarded under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010, which allowed procurement without open tendering and shielded decisions from court challenge. In November 2024 the High Court Division declared two of its provisions unconstitutional, and the interim government then repealed the Act by ordinance. The repealing ordinance treats contracts signed and actions taken under the Act as valid for the period before repeal, while preserving the government's right to review them in the public interest.
For investors and lenders, the practical effect is twofold. New projects go through ordinary procurement and approval routes, and existing contracts awarded under the 2010 Act may face review, renegotiation or scrutiny. An energy and power project lawyer in Chittagong will read the specific contract, its change-in-law and termination provisions, and the government's review steps before advising on exposure.
Tariffs and BERC
A 2023 amendment had allowed the government to set energy prices by executive order without a BERC public hearing. A gazette notification of 27 August 2024 removed that power, so that price adjustment proposals go back to BERC for examination and a public hearing, with a decision due within a fixed statutory period. Tariff assumptions in project models should reflect this process.
Regulators and counterparties
- Power Division of the Ministry of Power, Energy and Mineral Resources sets policy for generation and the grid; the Power Division publishes policies and guidelines.
- Bangladesh Power Development Board is the main purchaser of power from independent producers under power purchase agreements.
- Energy and Mineral Resources Division oversees gas, LNG and petroleum, with Petrobangla, its LNG subsidiary and the Bangladesh Petroleum Corporation; the Energy and Mineral Resources Division is the ministry-level contact.
- Karnaphuli Gas Distribution Company supplies gas to industrial, captive power and household customers in Chattogram.
- Invest Bangladesh Authority: the Invest Bangladesh Act 2026 merged BIDA, BEZA and the Public Private Partnership Authority into the Invest Bangladesh Authority and repealed the PPP Act 2015, so PPP energy projects and economic zone utilities now run through the new authority.
- Bangladesh Public Procurement Authority oversees the public procurement regime and the e-GP system.
Project structures and how to choose between them
Most energy projects in and around Chattogram fall into a handful of structures. Each allocates risk differently between the public sector, the developer, lenders and contractors.
| Structure | Typical counterparty | Key documents | Main legal risks |
|---|---|---|---|
| Independent power producer | Bangladesh Power Development Board and government | Power purchase agreement, implementation agreement, land lease, fuel supply agreement | Payment delays, tariff review, change in law, foreign exchange availability |
| Public sector plant built by EPC contractor | State-owned generation company or utility | EPC contract under public procurement rules, lender documents | Procurement compliance, variations, delay damages, performance tests |
| PPP project | Line ministry or agency, with the Invest Bangladesh Authority | Concession or PPP agreement, direct agreements with lenders | Approval route under the new authority, termination compensation, land handover |
| Captive or rooftop generation | Industrial user, sometimes with net metering | Equipment supply and installation contract, O&M agreement, gas or grid connection | Permits, gas allocation, safety approvals, warranty claims |
| Utility-scale renewables | Bangladesh Power Development Board or a private offtaker | PPA, land lease or purchase, grid connection agreement | Land title and acquisition, grid capacity, tariff setting |
The Renewable Energy Policy 2025, published by the Power Division in June 2025, aims for at least 20 per cent of power demand to be met from renewable sources by 2030. As reported at publication, it offers renewable producers a ten-year corporate tax exemption followed by partial relief, allows rooftop and on-site systems for industrial and commercial users, encourages use of idle public land, and leaves tariffs to BERC. Incentives depend on the detailed rules and tax provisions in force when a project is approved.
On energy projects the contract is only as strong as the approvals, land and payment mechanics behind it. Most disputes we see started as a gap in one of those three.
The project lifecycle: from site to commercial operation
- Structure and feasibility. Choose the project vehicle, ownership and offtake model, and check sector, foreign investment and foreign exchange rules for capital, loans and dividends.
- Land and site. Secure land by purchase, lease, allocation in an economic zone or government acquisition, and verify title, mutation and any encumbrances.
- Permits and clearances. Obtain location and environmental clearance, licences under the Electricity Act or from BERC as required, and fire, boiler and other safety approvals.
- Offtake and fuel. Negotiate the power purchase or supply agreement, implementation or concession agreement, and gas, LNG or fuel supply arrangements.
- EPC and O&M contracting. Agree scope, price, programme, performance guarantees, delay and performance damages, liability caps and dispute resolution.
- Financing. Close loan agreements, security over land, plant and project accounts, and direct agreements giving lenders step-in rights.
- Construction and testing. Manage variations, extensions of time, customs clearance of equipment through Chattogram port, and performance tests.
- Operation. Administer invoices, tariff adjustments, outages, change-in-law claims and, where needed, disputes.
The order is not rigid. Lenders often insist that land, key permits and offtake are in place before financial close, while contractors want the site and access secured before they mobilise. An energy and power project lawyer in Chittagong helps align conditions precedent across the documents, so that no party is bound before the others are ready and the project does not stall between signing and construction.
Our article on EPC contracts and project finance for Chattogram power and industrial projects looks more closely at the construction stage.
Chattogram-specific issues
National rules apply everywhere, but the questions an energy and power project lawyer in Chittagong deals with are shaped by local geography: imported fuel, coastal land, a congested port and a fast-growing industrial belt. Four issues come up repeatedly.
Gas supply and allocation
Chattogram's gas supply depends heavily on imported LNG regasified at Moheshkhali. Industry reports in recent years have described long queues for new industrial connections and load increases through Karnaphuli Gas Distribution Company, and the effect of any terminal disruption on local supply. A project that relies on gas, whether for captive generation or process heat, needs a realistic view of allocation, connection approvals and contingencies, and contract terms that deal with curtailment.
Fuel import infrastructure
The single point mooring off Moheshkhali carries crude oil and diesel by pipeline towards the Eastern Refinery in Patenga. In September 2026 the government purchase committee approved an operations and maintenance contract with an Indonesian operator for the facility. Contractors and service providers around such infrastructure need to understand procurement rules, performance regimes and liability allocation under state contracts.
Land, coast and environment
Coastal and riverside sites in Anowara, Banshkhali, Sitakunda and Mirsarai raise particular land and environmental questions: khas and char land, fragmented private ownership, acquisition compensation, cyclone and flood risk, and hill-cutting and wetland restrictions. Environmental clearance for a power plant usually requires a full impact assessment. Our environmental clearance and land acquisition teams often work on the same project.
Equipment imports
Turbines, transformers, solar modules and spare parts arrive through Chattogram port. Customs classification, any applicable exemptions and the timing of clearance affect the construction programme. Delays here are a common basis for extension of time claims, so EPC contracts should allocate customs risk clearly. Our customs practice handles valuation and clearance issues.
Economic zones and industrial users
Factories in the Mirsarai and Anowara economic zones and in the export processing zones need power, gas and sometimes their own generation. Utility arrangements inside a zone are tied to the zone developer and regulator, now the Invest Bangladesh Authority for economic zones and BEPZA for export processing zones. Industrial users negotiating supply, captive generation or rooftop solar should ask an energy and power project lawyer in Chittagong to check the zone rules alongside the general energy law. See our guide to the National Special Economic Zone at Mirsarai.
Risks and common mistakes
Relying on contracts awarded under the repealed 2010 Act
Contracts made under the special 2010 Act are treated as valid for the period before repeal, but the government kept the right to review activities carried out under it. Owners, lenders and contractors should identify which agreements were awarded under that Act, read the change-in-law, termination and compensation clauses, and prepare a record showing how the contract was negotiated and performed. Where a review leads to proposed renegotiation, legal advice before the first meeting helps protect the position.
Payment delays and foreign exchange
Payment arrears to private power producers and foreign-currency shortages have affected the sector in recent years. Projects should check how invoices are verified, what late-payment interest applies, whether payment security exists and how foreign-currency payments are made through authorised dealer banks under Bangladesh Bank rules. Contractors and suppliers should not assume that a government counterparty will pay on time, and should keep claims and notices up to date.
Weak notice and claims procedures in EPC contracts
Most EPC disputes turn on whether the contractor gave timely notice of a delay or variation. Contracts based on international forms often contain strict notice periods. Contractors in Chattogram sometimes rely on site meetings and informal emails, then find a claim time-barred. Owners, in turn, lose the right to delay damages if they cause delay themselves without granting an extension. A clear claims protocol and disciplined record-keeping protect both sides.
Land title and acquisition gaps
Energy projects often need large, contiguous sites assembled from many small plots, some with inherited, disputed or unrecorded ownership. Buying from the wrong person, failing to complete mutation or starting work before acquisition is completed can stop construction through injunctions or protests. Verify title independently, record each purchase properly and, for acquired land, follow the acquisition and compensation process carefully.
Procurement challenges
Public procurement now runs under the Public Procurement Rules 2025, which took effect in September 2025 with mandatory e-GP, beneficial ownership disclosure and a debarment board. Bidders who ignore procedural requirements risk disqualification, and awards made outside the rules are open to challenge. Review tender documents early, raise clarifications within the time allowed and use the complaint procedures if a decision appears wrong.
Keep a single, dated register of every approval, licence, clearance and land document for the project, with expiry dates and conditions. Lenders, insurers, auditors and courts will all ask for it, and a missing renewal is one of the easiest ways for a counterparty to suspend payments or refuse to proceed.
Energy and construction disputes
Disputes on energy projects usually concern delay, defects, variations, performance tests, payment and termination. Most international project contracts choose arbitration, often seated in Singapore or London or under the Bangladesh International Arbitration Centre. Domestic contracts may provide for arbitration under the Arbitration Act 2001 or fall within the jurisdiction of the civil courts.
An energy and power project lawyer in Chittagong can preserve claims through proper notices, run negotiations or dispute boards, conduct arbitration, seek interim relief from the courts, and enforce awards. Our arbitration practice and construction dispute team work together on these matters, and administrative decisions by public bodies can sometimes be challenged by writ in the High Court Division.
Foreign investors, lenders and contractors
Most large energy projects involve foreign sponsors, contractors from China, Japan, Korea, India or Europe, and international lenders or export credit agencies. Their documents are usually governed by English or Singapore law, but land, permits, security, tax, foreign exchange and enforcement remain Bangladeshi questions.
An energy and power project lawyer in Chittagong provides the local law input: capacity and authority of Bangladeshi parties, registration of security, enforceability of arbitration clauses and foreign judgments, foreign exchange approvals for loans and payments, and tax on contractors' income and imports. TRW & Co's offices in Dhaka, Singapore, Dubai and London help coordinate with foreign counsel and sponsors in their own time zones. See also our foreign investment page.
How an energy and power project lawyer in Chittagong at TRW & Co helps
We work for developers, contractors, suppliers, lenders and industrial users. We do not promise outcomes, but we make sure each stage is documented and defensible.
Project structuring
We advise on the project vehicle, foreign investment and foreign exchange rules, sector licences and the approval route under the Invest Bangladesh Authority or the relevant ministry.
Land and permits
We verify title, manage purchases and leases, support acquisition and compensation processes, and coordinate environmental and safety clearances.
Offtake and supply contracts
We review and negotiate power purchase, implementation, gas and fuel supply agreements, focusing on payment, tariff review and change in law.
EPC and O&M contracts
We draft and negotiate EPC, supply and maintenance contracts, including claims procedures, guarantees and liability caps suited to Bangladeshi conditions.
Finance and security
We act on local security over land, plant and accounts, registration with RJSC and the sub-registry, and local law opinions for lenders.
Claims and disputes
We prepare notices and claims, run negotiations and arbitrations, seek interim relief and enforce awards in Bangladesh.
You can explore all our practices or visit the Chattogram office hub.
Checklist for decision-makers
- Was any of our existing contracts awarded under the repealed 2010 special Act, and what do its change-in-law clauses say?
- Do our tariff and revenue assumptions reflect BERC's restored public-hearing process?
- Is the land title verified, mutated and free of disputes, or is acquisition complete?
- Do we hold every environmental, electricity, fire and boiler approval, with a renewal calendar?
- Is gas or fuel supply contractually secured, and what happens on curtailment?
- Do our EPC contracts have clear notice and claims procedures that the site team actually follows?
- Have we checked the approval route for PPP or zone projects since the Invest Bangladesh Authority took over?
- Are payment security, late-payment interest and foreign currency mechanics documented?
- Do we know where and how a dispute would be resolved and an award enforced?
To discuss a project with an energy and power project lawyer in Chittagong, contact our Chattogram office at Room 4022, Annex 2, District and Sessions Judge Court Building, Court Hill (Porir Pahar), Kotwali, Chattogram 4000, email info@trw.co or call +880 1779 127165.
Frequently asked questions
01What happened to contracts signed under the 2010 special power law?
The ordinance that repealed the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010 treats contracts signed and actions taken under it as lawful for the period before repeal. It also preserves the government's right to review those activities and act in the public interest. Owners and lenders should identify affected contracts, check their change-in-law and termination clauses, and prepare documentation before any review or renegotiation begins.
02Who sets electricity and gas tariffs in Bangladesh now?
The Bangladesh Energy Regulatory Commission. A 2023 amendment had allowed the government to set prices by executive order without a public hearing, but a gazette notification of 27 August 2024 removed that power. Price change proposals now go to BERC, which examines them, holds a public hearing and decides within a statutory period. Long-term power purchase agreements may contain their own tariff formulas, which apply within that framework.
03Do power projects need environmental clearance?
Yes. Under the Environment Conservation Act 1995 and the Environment Conservation Rules 2023, power plants and many fuel facilities fall into the higher-risk categories, which usually require location clearance, an environmental impact assessment and then environmental clearance from the Department of Environment before operation. Smaller rooftop or captive systems may fall into lower categories. Clearance conditions must be met and renewed throughout the project.
04Can a factory in Chattogram generate its own power?
Yes, captive generation and rooftop solar are common, but they need the right approvals. Depending on the technology and size, these may include licensing or permission under the Electricity Act and BERC rules, gas connection approval from Karnaphuli Gas Distribution Company, environmental clearance, and boiler and fire safety approvals. Surplus solar power may be exported under the net metering guidelines. We check the specific approvals for your site and capacity.
05How are PPP energy projects approved after the Invest Bangladesh Act 2026?
The Invest Bangladesh Act 2026 merged the Public Private Partnership Authority with BIDA and BEZA into the Invest Bangladesh Authority and repealed the PPP Act 2015. According to the authority, the new law clarifies the approval framework for PPP projects and allows simplified approval of small PPP projects through the relevant ministries. Rules and guidelines are still being issued, so we confirm the current procedure for each project.
06Where are energy project disputes resolved?
Usually by arbitration. International EPC, supply and finance contracts often choose arbitration in Singapore or London, while domestic contracts may provide for arbitration in Bangladesh under the Arbitration Act 2001. Bangladesh is a party to the New York Convention, so foreign awards can be enforced through the courts. Decisions of public bodies may sometimes be challenged by writ in the High Court Division. The contract's dispute clause is the starting point.
07Can you act for foreign EPC contractors and lenders?
Yes. We act for foreign contractors, suppliers, sponsors and lenders on the Bangladeshi law aspects of their projects: local entities and registrations, permits, land, security, tax and foreign exchange, enforceability opinions and disputes. We work alongside the client's international counsel, and TRW & Co's offices in Singapore, Dubai and London help coordinate across time zones.
Sources and official materials
- Electricity Act 2018 — Framework for generation, transmission, distribution and licensing
- The Daily Star: Power sector's indemnity act repealed at last — Repeal of the 2010 special power law and treatment of existing contracts
- The Financial Express: Govt's executive authority to raise power and gas prices cancelled — BERC public hearings restored for price changes
- The Daily Star: Govt unveils new renewable energy policy — Renewable Energy Policy 2025 targets and incentives
- Bangladesh Public Procurement Authority — Public Procurement Rules 2025 and the e-GP system
- Invest Bangladesh: press release on the Invest Bangladesh Bill 2026 — Merger of BIDA, BEZA and the PPP Authority
- Power Division, Ministry of Power, Energy and Mineral Resources — Power sector policies and guidelines
General information only, current as at 2 November 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
