$1.004b financing secured to modernize Eastern Refinery

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The Islamic Development Bank (IsDB) will provide $1.004 billion in financing for the modernization and expansion of Bangladesh’s Eastern Refinery.

A financing agreement worth $1.00429 billion was signed between the Government of Bangladesh and IsDB in Dhaka on Thursday during the visit of IsDB Group Chairman Dr. Muhammad Al Jasser.

The agreement was signed by Additional Secretary of the Economic Relations Division Dr. Mohammad Mizanur Rahman and IsDB Director General for Country Programs Anasse Aissami. Prime Minister Tarique Rahman and Dr. Al Jasser attended the signing ceremony.

The project will be implemented by Bangladesh Petroleum Corporation (BPC) under the Energy and Mineral Resources Division.

Once completed, the project is expected to increase Eastern Refinery’s annual refining capacity from 1.5 million metric tonnes to 4.5 million metric tonnes. It will also enable the production of Euro-5 standard fuel, strengthen Bangladesh’s energy security and reduce the country’s dependence on imported refined petroleum products.

IsDB has been a longstanding development partner of Bangladesh, supporting the country through project financing, grants, trade financing, private-sector funding and export credit guarantees.

Following the signing ceremony, Dr. Al Jasser met with Prime Minister Tarique Rahman and reaffirmed the bank’s commitment to supporting Bangladesh’s development priorities.

The prime minister urged IsDB to explore opportunities for providing low-cost financing to its member countries and assured that Bangladesh would extend all possible cooperation to further strengthen its partnership with the institution.