Bangladesh Appoints UK Firm To Arbitrate Coal Pricing With Adani
COAL & MINING

Bangladesh Appoints UK Firm To Arbitrate Coal Pricing With Adani

Bangladesh has appointed a United Kingdom (UK) law firm to arbitrate a dispute with Adani Group (Adani) over coal pricing for power projects. The appointment follows disagreements between the parties on the method for setting prices and the commercial terms that underpin coal supply contracts. The decision to pursue arbitration reflects a preference for neutral dispute resolution rather than litigation in domestic courts. The firm will act as an independent adjudicator of contractual interpretation and pricing mechanisms.

The law firm is expected to review project contracts, examine pricing formulas and assess whether changes to global or regional coal markets affected agreed price benchmarks. Arbitration proceedings typically involve submission of legal memoranda, expert reports and closed hearings before an arbitral tribunal. The process can result in a binding award, negotiated settlement or procedural directions that guide further negotiation. Both sides are likely to present commercial and technical evidence to support their positions.

The outcome will be closely watched by stakeholders in Bangladesh's power sector as coal remains a key fuel for electricity generation. Adani is a major developer and operator in energy and infrastructure and its engagements with host governments carry wider implications for project delivery and supply security. A fair and timely resolution may help preserve investor confidence and ensure continuity of fuel supplies to power plants. Conversely prolonged dispute resolution could introduce uncertainty into project operations and planning.

Government agencies, state utilities and private operators will monitor the arbitration timetable and any interim measures that affect coal deliveries or tariff adjustments. The arbitration result may also influence future contractual drafting and risk allocation in cross border energy arrangements. Observers said that transparent resolution of commercial disputes supports market stability and the reliable functioning of power systems, while parties prepare to adapt commercial arrangements in light of any tribunal findings.

Bangladesh has appointed a United Kingdom (UK) law firm to arbitrate a dispute with Adani Group (Adani) over coal pricing for power projects. The appointment follows disagreements between the parties on the method for setting prices and the commercial terms that underpin coal supply contracts. The decision to pursue arbitration reflects a preference for neutral dispute resolution rather than litigation in domestic courts. The firm will act as an independent adjudicator of contractual interpretation and pricing mechanisms. The law firm is expected to review project contracts, examine pricing formulas and assess whether changes to global or regional coal markets affected agreed price benchmarks. Arbitration proceedings typically involve submission of legal memoranda, expert reports and closed hearings before an arbitral tribunal. The process can result in a binding award, negotiated settlement or procedural directions that guide further negotiation. Both sides are likely to present commercial and technical evidence to support their positions. The outcome will be closely watched by stakeholders in Bangladesh's power sector as coal remains a key fuel for electricity generation. Adani is a major developer and operator in energy and infrastructure and its engagements with host governments carry wider implications for project delivery and supply security. A fair and timely resolution may help preserve investor confidence and ensure continuity of fuel supplies to power plants. Conversely prolonged dispute resolution could introduce uncertainty into project operations and planning. Government agencies, state utilities and private operators will monitor the arbitration timetable and any interim measures that affect coal deliveries or tariff adjustments. The arbitration result may also influence future contractual drafting and risk allocation in cross border energy arrangements. Observers said that transparent resolution of commercial disputes supports market stability and the reliable functioning of power systems, while parties prepare to adapt commercial arrangements in light of any tribunal findings.

Next Story
Infrastructure Urban

Public Capex Push In Budget To Boost Tyre Industry: ATMA

The Indian tyre industry is expected to benefit from the government’s renewed emphasis on infrastructure development outlined in the Union Budget 2026–27, according to the Automotive Tyre Manufacturers Association (ATMA).ATMA said the tyre sector is closely linked to the performance of the transport and infrastructure ecosystem, and the sharp rise in public capital expenditure to Rs 1.2 trillion is a significant positive for sustained long-term demand growth.The association noted that the enhanced capex allocation reflects the government’s continued focus on building future-ready infrast..

Next Story
Infrastructure Transport

Underground Rail Line Planned In Siliguri ‘Chicken’s Neck’

Indian Railways is planning to construct underground railway tracks along a critical 40 km stretch of the Siliguri Corridor, popularly known as the Chicken’s Neck, to strengthen connectivity between the North East and the rest of India while enhancing security preparedness. According to the Indian Railways, the underground section is strategically significant due to the corridor’s narrow geography and proximity to international borders. Chetan Kumar Srivastava, General Manager of the Northeast Frontier Railway, said the proposed underground alignment is extremely important from a security..

Next Story
Infrastructure Urban

Agriculture Infrastructure Fund Boosts Post-Harvest Assets

The Agriculture Infrastructure Fund (AIF), a Central Sector Scheme of the Government of India, continues to strengthen post-harvest management infrastructure by enabling access to medium- and long-term debt financing through interest-subvented loans. The scheme focuses on improving agri-logistics, reducing post-harvest losses, promoting modern storage, processing and value-addition facilities, and enhancing farm-gate infrastructure to support efficient agricultural supply chains. Under AIF, banks and financial institutions provide loans with an interest subvention of three per cent per annum,..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App