Bangladesh Appoints UK Law Firm to Arbitrate Coal Pricing
Bangladesh has engaged a British law firm to advocate for its state-owned Power Development Board (BPDB) in mediation talks regarding disputes with Adani Power Limited concerning coal pricing and electricity tariffs.
BPDB officials stated they selected 3VP, a prominent London-based law firm specializing in commercial and financial litigation, to represent Bangladesh at the Singapore International Arbitration Centre (SIAC), an international arbitration court.
The Bangladesh-based Business Standard (TBS) reported that the 3VP chambers, led by King's Counsel Farhaz Khan, had been providing advice to a national review committee regarding the Adani deal for several months.
The progress occurred in under a week, just five days after the committee presented its final report outlining power sector agreements established under the ousted prime minister Sheikh Hasina's overthrown Awami League administration.
"A Power Division official stated that our decision to engage the British firm followed Adani Power starting arbitration at the Singapore International Arbitration last year, as the Indian energy major asserted around $ 485 million in unpaid claims related to the contested coal tariff."
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According to the agreement, mediation is a required but non-enforceable stage prior to complete arbitration.
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Bangladesh contends that Adani is setting an unreasonably high price for coal, raising the costs of electricity generation. Following the collapse of the Hasina-led administration on August 5, 2024, during a violent protest led by students, BPDB ramped up endeavors to restart discussions with Adani.
The national review committee reported earlier on Thursday that it had collected compelling evidence for Bangladesh to commence international legal action against Adani Power Limited.
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"Financial exchanges occurred between Adani representatives and Bangladeshi officials, and the committee is prepared to present this proof to the court when legal actions commence," stated Fouzul Kabir Khan, the interim government’s energy advisor.
The review committee provided its interim report in November of the previous year, during which the adviser mentioned that Bangladesh's interim government under Muhammad Yunus could terminate the current power procurement agreement with Adani if it was demonstrated that the arrangement was made through corrupt practices.