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New report flags economic, environmental risks

JAPAN-LED MOHESHKHALI-MATARBARI MASTER PLAN

Dec 10, 2025

| Staff Reporter | Daily Sun

A new civil society report has warned that the Japanese-backed Moheshkhali–Matarbari Integrated Development Initiative (MIDI) Master Plan poses severe governance, economic, environmental and social risks for Bangladesh.


The report titled “The Moheshkhali-Matarbari Integrated Development Initiative (MIDI) Master Plan: Another Japanese Domination for Energy Colonialisation in Bangladesh” was published by the Coastal Livelihood and Environmental Action Network (CLEAN) on Wednesday.


It provides an in-depth critique of both the master plan and the legal framework supporting it, the Moheshkhali Integrated Development Authority (MIDA) Ordinance. CLEAN argues that the initiative must be urgently halted before irreversible damage occurs.


Parallel governance and constitutional concerns

The report asserts that MIDA creates a powerful, unelected administrative structure that overrides democratically elected local government bodies. It claims that the new authority’s jurisdiction conflicts with established institutions such as the Chattogram Port Authority and the Cox’s Bazar Development Authority, potentially triggering long-term governance disputes.


CLEAN warns that this bypassing of statutory authorities violates constitutional principles and weakens accountability mechanisms.


LNG dependence and economic vulnerability

A major focus of the report is JICA’s heavy emphasis on liquefied natural gas (LNG) while ignoring viable renewable alternatives. CLEAN argues that the plan is designed to maximise the import of Japanese technology and fuel, deepening Bangladesh’s reliance on foreign energy markets.


According to the report, the LNG-heavy model exposes Bangladesh to volatile global prices, leaving the country to absorb financial risks while Japan maintains control over technology, financing and fuel supply chains. Bangladesh’s gas tariffs—already increased by up to 179%—could rise even further as subsidies become fiscally unsustainable.


High environmental costs

The analysis warns that the fossil fuel-driven expansion under MIDI could produce an estimated 1.3 billion tonnes of carbon dioxide-equivalent emissions, undermining global climate commitments. CLEAN also highlights severe local environmental impacts already unfolding.


Construction related to the plan has reportedly disrupted the natural flow of the Kohelia River, increased flood risks and damaged ecologically sensitive habitats, including areas used by endangered migratory species such as the Spoon-billed Sandpiper.


Mass displacement and livelihood destruction

CLEAN estimates that implementation of the MIDI Master Plan requires 12,951 acres of land, resulting in the displacement of around 116,000 people—essentially the entire population of Matarbari Island. Traditional livelihoods based on salt cultivation and shrimp farming are being erased as these lands are converted into industrial zones.


The report further alleges widespread corruption in land acquisition, claiming that affected families are forced to pay up to 30% of their compensation in bribes to secure payments.


Call for cancellation and alternative development

CLEAN concludes that the Japanese-led initiative represents a form of “energy colonialism” that prioritises foreign interests over local needs. The organisation urges the government to suspend the master plan, repeal or revise the MIDA Ordinance and shift investment towards community-oriented renewable energy solutions. The report calls for a transparent decision-making process that places local communities at the centre of development planning rather than treating them as expendable.


News link: New report flags economic, environmental risks

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