BPDB payment claims: protect unpaid bills before deadlines run

by Barrister Tahmidur Rahman | Oct 26, 2026

Fixed-fee review · Energy and infrastructure

BPDB payment claims: protect unpaid bills before deadlines run

A fixed-fee review of your BPDB payment claims for independent power producers and their lenders: what is owed, which contract and limitation deadlines apply, which forum fits and how the security package responds. A phased budget follows only if you decide to act.

The Legal 500 · Bangladesh: Tier 2 Intellectual property · Tier 2 Tax · Tier 3 Dispute resolution

bpdb payment claims: Fixed-fee review · Energy and infrastructure

Who this is for

Independent power producers with unpaid BPDB invoices under a power purchase agreementLenders, facility agents and security trustees financing power plants in BangladeshSponsors and equity investors assessing arrears before a refinancing, sale or restructuringIn-house counsel who need a dated deadline map before the next board or lender meeting

Why it matters now

Bpdb payment claims

BPDB payment claims have become a balance-sheet issue for the whole power sector. Bangladesh Power Development Board officials put dues to power producers at BDT 437.75 billion as of June 2026, covering electricity bought from December 2025 to June 2026, after arrears had exceeded BDT 500 billion in February 2026, fallen and then risen again [8]. Some producers report receiving only part of each monthly bill [8]. For a producer or lender, every unpaid invoice is a claim with its own clock, and a wait-and-see approach can quietly erode legal rights.

Bangladesh limitation law is strict. Section 3 of the Limitation Act 1908 deals with the dismissal of suits and applications brought after the prescribed period [1]. A written acknowledgment of liability signed before the period expires starts a fresh period [2], which is why reconciliations and payment correspondence matter. The High Court Division has held that time for a contract money claim runs from the breach, not from the date the claimant learned of it [7]. Power purchase and implementation agreements then add their own notice, escalation and arbitration deadlines.

Forum choice shapes recovery. Bangladesh has been an ICSID Contracting State since 26 April 1980 [4] and a New York Convention party since 4 August 1992 [5], and the High Court Division has said the grounds for refusing enforcement of a foreign award must be read narrowly [6]. Yet the US State Department reports that awards are unevenly enforced and that the government has challenged ICSID and non-ICSID awards against it [9]. Arbitration matters and infrastructure contracts also appear in the new commercial courts' list of commercial disputes [3].

What is included

What our bpdb payment claims service includes

01Claims and arrears schedule

We reconcile invoices, payments, part-payments, set-offs and late-payment entitlements under the PPA into one dated schedule of BPDB payment claims, flagging disputed items and invoices BPDB has queried or never acknowledged.

02Limitation and notice deadline map

For each invoice we identify the governing limitation article, when time began to run, any written acknowledgment that restarted it under section 19 of the Limitation Act 1908, and every notice or escalation deadline in the agreements.

03Dispute clause review

We analyse the dispute clauses in the PPA, implementation agreement and any guarantee: amicable settlement and expert steps, seat, rules (domestic, SIAC or other), governing law, immunity waiver and whether a treaty or ICSID route may be open.

04Security package review

We check how the arrears affect the security package: assignment of receivables and PPA rights, government support instruments, direct agreements, project accounts, step-in rights and any covenant breach, waiver or standstill the lenders may need.

05Forum and enforcement options memo

A written memo compares negotiation, domestic arbitration, international arbitration and court routes, including where an award or judgment could be enforced and the realistic risks of challenge or delay in Bangladesh.

06Preservation letters

Where a deadline is close, we draft notices of dispute, reservation of rights letters or requests for written acknowledgment designed to preserve claims without damaging the commercial relationship with BPDB or the Power Division.

07Phased budget proposal

If you decide to proceed, we set out a phased budget with a cap for negotiation, formal notices, arbitration and enforcement, with the assumptions behind each phase stated in writing before it begins.

How it works

Bpdb payment claims, step by step

  1. Founding partner consultationWeek 1

    Book a 40-minute consultation with a founding partner. We discuss the plant, the arrears, the financing structure and any urgent deadline, then confirm the scope of the review and the fixed fee in writing before any work starts.

  2. Document intake and conflict checkStage 1

    You share the PPA, implementation agreement, finance and security documents, invoices and correspondence through a secure data room. We complete conflict checks against BPDB and other counterparties and confirm the review timetable with you.

  3. Deadline map for BPDB payment claimsStage 2

    We build the claims schedule and limitation map, flag any claim at risk of becoming time-barred and, where needed, send draft preservation letters for immediate use while the wider review continues.

  4. Options memo and meetingStage 3

    We deliver the dispute clause, security and forum analysis and take your board, sponsors or lender group through the options, costs and risks in one meeting, in Dhaka or by video.

  5. Phased budget if you proceedAfter the review

    If you choose to act, we propose a capped budget for each stage, such as negotiation, formal notice, arbitration filing and enforcement, so that costs are agreed before each phase begins.

Fixed fee

The review is a fixed fee. It depends mainly on the number of plants, invoices and agreements involved, and whether both lender and sponsor positions need analysis. Later work, such as notices, arbitration or court steps, is quoted as a phased budget with a cap. Institution, court and expert fees are passed through at cost, and every fee is confirmed in writing before work starts.

We confirm the fee in writing before any work starts. Government fees, court fees and stamp duty are passed through at cost.

Questions

Bpdb payment claims: questions

How long do we have to bring BPDB payment claims?

It depends on the claim, the agreement and the forum. The Limitation Act 1908 sets periods by type of claim in its First Schedule and provides for dismissal of claims brought late [1]. For contract money claims, the High Court Division has said time runs from the breach rather than the date of knowledge [7]. A signed written acknowledgment of liability given before expiry starts a new period [2]. Because each invoice can have its own start date, we map every invoice rather than applying one date to the whole arrears balance.

Does continuing to negotiate with BPDB stop time running?

Not by itself. Meetings and informal promises to pay do not usually stop the limitation clock. What can help is a written acknowledgment of liability, signed by BPDB or its authorised agent before the period expires, which starts a fresh period under section 19 of the Limitation Act 1908 [2]. The acknowledgment need not state the exact amount owed [2], but it must be in writing and signed. We review your correspondence to see whether an existing letter qualifies, and draft requests where none does.

Can we use SIAC or ICSID against a Bangladeshi state counterparty?

Only if your agreements or an applicable treaty provide for it. Bangladesh has been an ICSID Contracting State since 1980 [4], but ICSID jurisdiction also needs consent, usually through a contract clause or an investment treaty, and a qualifying investor. Institutional arbitration such as SIAC depends on the clause in the PPA or implementation agreement. We read the clauses together, including any immunity waiver, and explain which routes are genuinely open before you spend money on a filing.

Will a foreign arbitral award be enforced in Bangladesh?

Bangladesh is a New York Convention party, with the Convention in force since 4 August 1992 [5]. In 2026 the High Court Division confirmed that a foreign award is enforced under section 45 of the Arbitration Act 2001 without separate recognition and execution proceedings, and that the refusal grounds in section 46 are read narrowly [6]. Enforcement can still be contested: the US State Department reports uneven court enforcement and government challenges to awards made against it [9]. We plan for that from the start.

What does the review mean for lenders and security trustees?

Arrears can trigger cover ratio, reserve account or default provisions in a facility agreement, and the lenders' recovery rights often depend on assignments of receivables and PPA rights. We check whether assignments were properly made and notified, how the direct agreements work, and what standstill or waiver steps may be needed while claims are pursued. Lenders and producers may need separate advice where their interests differ, so we confirm who the client is and clear conflicts in writing at the outset.

Can the new commercial courts hear power sector payment disputes?

The commercial courts legislation lists construction and infrastructure contracts, and arbitration agreements, proceedings and awards under the Arbitration Act 2001, among commercial disputes [3]. The Commercial Court Ordinance 2026 has since been repealed and replaced by the Commercial Courts Act 2026 (Act No. 23 of 2026) [3]. Whether a particular claim belongs there depends on the dispute clause and the parties. Where the PPA has an arbitration clause, the court's role is likely to centre on applications about the arbitration and the award.

Sources

  1. Limitation Act 1908 (Act No. IX of 1908): Laws of Bangladesh
  2. Limitation Act 1908, section 19: effect of acknowledgment in writing
  3. Commercial Court Ordinance 2026 (Ordinance No. 1 of 2026), repealed by the Commercial Courts Act 2026 (Act No. 23 of 2026): Laws of Bangladesh
  4. ICSID: List of Contracting States and Other Signatories of the Convention (July 2026)
  5. UNCITRAL: Status of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958)
  6. High Court Division, South Express Ltd v Madina Enterprise, Arbitration Appeal No. 08 of 2025 (9 July 2026)
  7. High Court Division, Penticgem International Ltd v Unites Knitwear Ltd, Civil Revision No. 4112 of 2023 (10 January 2024)
  8. Bonik Barta, 26 August 2026: BPDB owes power producers nearly BDT 440 billion
  9. US Department of State: 2026 Investment Climate Statements, Bangladesh

Related

Start with a consultation

Tell us the facts and deadlines. We will confirm scope, fee and timeline in writing before we begin.

General information on the law of Bangladesh, not legal advice. Sending an enquiry does not create a lawyer-client relationship.

Message TRW on WhatsApp