Nearly BDT 570 billion was spent to build the Matarbari coal-fired power plant. As part of the project, a 14.3-kilometer waterway channel was dredged. Although the Matarbari power plant began operating in 2023, it has not been supplying the expected amount of power to the national grid. At the same time, maintaining the waterway channel requires a substantial amount of money each year. Against this backdrop, the Interim Government is planning a 30-year master plan for the Maheshkhali-Matarbari area in Cox’s Bazar. The plan envisions transforming Maheshkhali into a modern, port-centric city modeled after Singapore and Shanghai. It is expected to include a deep-sea port, power plant, LNG and LPG terminals, and economic zones, creating a strong economic hub for Bangladesh that would add $150 billion to the country’s GDP.

In this context, many point to the failures surrounding similar projects at Payra in the southern region. During the tenure of the ousted Awami League government, a coal-fired power plant was built along the banks of the Payra River in Kalapara upazila of Patuakhali district. Coal for the ultra-supercritical technology-based power plant is transported through the Rabnabad Channel. Business plans by domestic and international companies linked to Payra port are also centered on this channel. However, due to navigability issues, large coal or cargo vessels (mother vessels) often cannot anchor at the jetty. As a result, uncertainty hangs over the power plant. Overall, the plan to develop a logistics hub around Payra through multiple infrastructure projects has failed. Instead, after massive spending, many economists now describe the entire project as a burden on the economy.

Infrastructure experts and economists have welcomed the Maheshkhali-Matarbari initiative but have also expressed concern regarding its implementation. They say it is still unclear how and by whom the plan will be executed. They warn that Bangladesh has a history of corruption and irregularities in such projects and advise strict oversight to ensure that the Maheshkhali-Matarbari master plan does not meet the same fate.

Infrastructure experts believe that projects such as Matarbari will not bring real benefits unless there is a change in the country’s governance system.

Dr. Shamsul Hoque, a Professor at Bangladesh University of Engineering and Technology (BUET), told Bonik Barta, “I see the government’s big plans as little more than wishful thinking. Before Matarbari, we heard similar dreams about the Payra deep-sea port, the Dhaka-Mawa expressway, and the Padma Bridge. People who make such claims do not truly understand our country. Building high-rises alone does not make a place like Singapore. At one point, Tejgaon was also supposed to be transformed into ‘another Singapore.’ But what makes Singapore unique? It is its efficient, corruption-free governance system. We don’t have that here. So, what good will it do to build big structures? No development will be sustainable or long-lasting this way.”

Water resources and port expert Dr. Ainun Nishat believes Matarbari has strong potential as a deep-sea port. However, he also sees ambiguity in the implementation of the master plan. Speaking to Bonik Barta, he added, “In the past, we have seen corruption and irregularities in projects like these. We cannot be certain this one will be any different.”

Currently, Bangladesh’s import-export trade depends almost entirely on the Chattogram port, which handles 90 percent of the country’s maritime trade. But the port’s channel is naturally silt-prone. Even with regular dredging, its depth reaches only 9.5 meters at high tide and falls to 6–7 meters at low tide, preventing large vessels from docking. The deep-sea port at Matarbari is being developed to overcome these limitations.

This year, Chattogram port has set a target of handling 3.7 million TEUs (twenty-foot equivalent units) of containers. However, the proposed Matarbari deep-sea port will have lower capacity. A study by the Japan International Cooperation Agency (JICA) projects that Matarbari will be able to handle only 600,000–1.1 million TEUs by 2029 and 2.2–2.6 million TEUs by 2041.

Business leaders have long complained about the lack of strong connectivity between Chattogram port and the country’s key economic hubs. They say Bangladesh’s import and export activities depend almost entirely on the Dhaka–Chattogram highway. The absence of container transport by rail and waterways, along with the lack of container depots in major economic hubs, slows down trade operations. Without developing transport corridors between the port and economic centers, they fear the Matarbari deep-sea port could become another failed project like the Payra port.

The Matarbari power plant was built by the state-owned Coal Power Generation Company Bangladesh Limited (CPGCBL). Mohammad Hatem, an independent Director of the company and president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Bonik Barta, “No matter how well we build a port, it will be useless if we don’t have good connectivity with the country’s economic centers. Right now, Chattogram port’s connectivity with Dhaka and other key areas is far from ideal. This must be addressed when implementing the Matarbari master plan.”

Meanwhile, Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, emphasized looking at the project’s value rather than seeing it purely as an urban development initiative. He said, “When people say Matarbari will be turned into another Singapore or Shanghai, that may weaken our focus. If we are building a supply chain corridor, port, and energy hub, yes, some infrastructure development will be needed. But it should not be seen as a massive urban development project. The real value here lies in infrastructure, the port, and the energy hub. Together, they can form a South Asian supply chain corridor that will attract investments in manufacturing, services, and logistics to support the chain. This is how similar infrastructure-based zones have emerged in many countries worldwide.”

Based on projections that electricity demand in the country would rise, a state-of-the-art ultra-supercritical power plant was built at Matarbari in Maheshkhali at a cost of around BDT 570 billion. Funded by JICA, the plant was constructed during the tenure of the now ousted Awami League government. However, it has rarely been able to supply electricity at full capacity. At times it had to be shut down due to coal shortages; at other times for maintenance.

Industry insiders say there are questions regarding how much benefit the costly Matarbari power plant will actually bring to ordinary people. Some policymakers in the Interim Government have even described the project as a luxury. According to power generation data from September 7, the 1,200-megawatt Matarbari thermal power plant supplied only 250 megawatts. That means the country’s most expensive coal-based power plant is operating at just 21 percent of its plant factor, even though energy experts say coal-based power plants should typically run at a 70–75 percent plant factor.

Md Nazmul Haque, Managing Director of Coal Power Generation Company Bangladesh Limited (CPGCBL), told Bonik Barta, “Currently, two units of the plant are in commercial production. However, power generation is low because one unit is under maintenance.”

Massive investment has been made in the Matarbari thermal power plant. Asked whether running the plant will recover the costs, Md Nazmul Haque said, “Of course the cost has to be recovered by running the plant. One unit is under maintenance. Once that work is done, the plant will operate at full capacity. The repayment of loans for the plant has already started. But since no power purchase agreement has yet been signed with the Bangladesh Power Development Board (BPDB), no bills are being received.”

A 14.3-kilometer-long navigation channel has already been created through the power plant project for the Matarbari deep-sea port. The channel, with a depth of 18.5 meters and a width of 350 meters, was built at a cost of around BDT 200 billion. To maintain its depth, regular maintenance dredging will be required. A JICA survey report stated that the Matarbari port channel would need 5 million cubic meters of dredging every year. At a minimum cost of $5 per cubic meter, this means annual dredging will cost $25 million (around BDT 3.04 billion at the current exchange rate).

The under-construction Matarbari deep-sea port faces several other challenges, including its failure to deliver the expected electricity from the power plant, the high cost of maintaining the port channel, and the lack of strong connectivity between the port and the country’s economic centers. Similar issues were visible in the Payra project as well.

Despite these limitations, Dr. Fahmida Khatun, Executive Director of the Center for Policy Dialogue (CPD), expressed optimism regarding the government’s long-term plan for Maheshkhali-Matarbari. She told Bonik Barta, “We want to remain hopeful. In the past, political governments made all kinds of commitments and held big celebrations, but nothing came of them. We do not want a repeat of that. We cannot say now what will happen in the future. Only after observing the progress of the work for some time will we be able to understand what the results might be.”

On September 5, Chowdhury Ashiq Mahmud Bin Harun, Executive Chairman of the Maheshkhali Integrated Development Authority (MIDA), wrote on his verified Facebook page regarding the project’s potential: “It is possible for Maheshkhali to become a modern port city. If Vietnam can completely transform Ho Chi Minh City, then why can’t we? I admit this is a very difficult task, especially given the Bangladesh government’s poor track record in completing projects on time. In the future, the country’s leadership must drive the project with a firm hand. Then it will certainly be possible.”

Many analysts point out that although MIDA’s Executive Chairman is optimistic about the Matarbari project, the similar Payra project failed in the recent past. The previous government had planned to build a large logistics hub around Payra port in the southern region. In 2021, the Bangladesh Infrastructure Development Fund (BIDF) was created using the country’s foreign exchange reserves. The first loan from this fund went to the Payra Port Authority, amounting to BDT 54.17 billion. The loan, taken from the foreign exchange reserves, was spent on dredging the port channel. Experts now view the maintenance challenges and costs of the Rabnabad port channel as a burden. Considering the economic returns and the high maintenance costs, the previous government had to abandon plans for a deep-sea port at Payra.

Similarly, during the Awami League government, significant investment was made to develop necessary infrastructure in several economic zones. However, Bangladesh gained no real benefit from these zones, as sufficient investment never materialized afterward.