Saudi group signs management partnership deal with CORML

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FE Report
Saudi Hitech International Group that plans to set up a 5.1 million tonne oil refinery in Chittagong signed Saturday a management partnership deal with Cosmopolitan Oil Refinery Management Ltd (CORML).
A proposal on building the refinery, which will be three times bigger than the country's lone Eastern refinery Ltd, will be placed for approval of the Board of Investment (BoI).
The Saudi company, which plans to invest US$3.0 billion on the refinery, will retain 100 per cent equity under the deal with CORML, a sister concern of the Cosmopolitan Group.
"We will conduct a survey for the site selection shortly at Anowara on the bank of Karnaphuli river. After completion of site selection, we will go for plant implementation, which will take around 40 months," said CORML chairman Dewan Sultan Ahmed.
This will be the single largest investment proposal by a foreign company.
But, it will require a special permission for setting up of refinery as it is a restricted sector, one senior Eastern Refinery official told the FE Saturday.
Dewan said at least 500 hectares of land is required for setting up of the plant.
"We intend to pursue and establish this project in the port city. This will be a 100 per cent export oriented company to be operated under the regulations and norms applicable for a venture in a free economic zone," he said.
"We will export fuel to Singapore and other countries after meeting local demand," said Dewan, who was also immediate past vice president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
He hoped the new refinery will have US$ 7.0 billion annual turnover.
At least 1000 local manpower will be hired for the plant and they will be able to earn nearly $ 5.0 million a year.
Yasin S Indarkiri, Chairman of Hitech International Group in his address said the investment will benefit the country's economy as it has skilled workforce.
"I am happy about the project as it will ensure a better future for the Bangladeshi people," he added.
Former FBCCI President Yousuf Abdullah Harun, who attended the signing ceremony, said this is the right time to encourage foreign direct investment in the country.
"A number of projects have long been waiting approval of the Board of Investment (BoI) for its decision," he added.
Managing Director of the Cosmopolitan Oil Refinery Management Limited and Chairman of Hitech International Group signed the contract on behalf of their respective sides.
BoI Executive Chairman Kamal Uddin Ahmed, former FBCCI president Mir Nasir Hossain, former FBCCI first vice president Mohammed Ali and high officials of the Hightech and Cosmopolitan were present at the signing ceremony.