IDB signs $1bn deal to modernise, expand Eastern Refinery

The government has signed a $1 billion agreement with the Islamic Development Bank (IDB) to modernise and expand Eastern Refinery, the only state-owned oil refinery in Bangladesh.

The agreement was signed at the Secretariat on Thursday in the presence of Prime Minister Tarique Rahman and IDB Group Chairman Muhammad Sulaiman Al Jasser, according to the Prime Minister's Deputy Press Secretary Mostafa Zulfiquar Hasan (Shiplu).

The agreement was signed on behalf of the Bangladesh government by Md Mohammad Mizanur Rahman, additional secretary of the Economic Relations Division of the Ministry of Finance and on behalf of IDB Group by Director General (Country Programs) Anasse Aisami.

Stating that the Eastern Refinery will develop an additional 3 million metric tonnes of oil refining capacity per year under this project, Deputy Press Secretary Shiplu said that if the project is implemented, it will be possible to meet about 45 to 50 percent of the country's demand for petroleum products. The project is planned for completion by November 2030.

The IDB works for the socio-economic development of its member countries. The bank's president, Al Jasser, arrived in Dhaka on Wednesday for a three-day visit. He is leading a high-level delegation from the organisation.