ECNEC approves Tk 354bn project to expand Eastern Refinery capacity

The project is designed to double the capacity of Eastern Refinery Ltd

The interim government has sanctioned a Tk 354.65 billion project to modernise and expand the capacity of Eastern Refinery Limited (ERL) at a meeting of the Executive Committee of the National Economic Council (ECNEC).

The government will provide Tk 212.77 billion for the project, while Tk 141.87 billion will come from the ERL, a subsidiary of state-owned Bangladesh Petroleum Corporation.

The project was approved at an ECNEC meeting on Tuesday, chaired by Chief Advisor Muhammad Yunus.

A media statement said 20 new processing plants will be set up under the project.

Established in 1968 in Chattogram, the state-owned oil refinery facility currently has a refining capacity of 1.5 million tonnes per year. The project will increase its capacity to three million tonnes.

The ECNEC approved 22 projects worth Tk 464.19 billion at its meeting on Tuesday. The government will provide Tk 304.82 billion for the projects, while the remaining costs will be covered through loans and the funds of those institutions.

The projects include 14 new initiatives. The ECNEC meeting also approved a time extension for three projects, each of which received their fourth extension.