$1.0b mega expansion project
Tuesday, 5 April 2011
Jasim Uddin Haroon
State-run Eastern Refinery officials Monday said it has asked 25 international companies for their detailed proposals on implementing its expansion project worth US$ 1.0 billion. The Chittagong-based Eastern Refinery Limited (ERL) undertook a project to boost its production capacity by 3.0 million tonnes a year through BMRE (balancing, modernisation, rehabilitation and expansion). The ERL received as many as 33 proposals from firms who have earlier submitted their 'expression of interest' to finance the project through BMRE. "We've found 25 companies responsive and have asked for their 'request for proposal' (RFP)," Rezaul Alam, managing director of ERL, told the FE. The ERL selected eight financial institutions and 17 companies with vast experience in oil refinery expansion for the project. The ERL officials said it has issued letters recently asking the bidders to submit their RFPs within May 30 either on direct financing or on build-own-operate and transfer (BOOT) basis. Syed Mozammel Hoque, director operations of Bangladesh Petroleum Corporation (BPC), said: "We'll scrutinise their RFPs and send them to the cabinet for final approval." Earlier, the ERL sought expression of interest (EoI) from national and international bidders in the July-August period in 2010 to finance its expensive project. The BMRE project will raise the refinery's capacity three times to 4.5 million tonnes a year from the existing 1.5 million tonnes. The ERL earlier conducted a feasibility study by Pakistan-based consultancy firm Enar Tech Service limited for the biggest ever project of Eastern Refinery. Bangladesh imports up to 3.8 million tonnes of oil, including 1.2 million tonnes of crude to meet yearly demands. ERL officials expect the expansion programme to be completed in three years. Jeddah-based Islamic Development Bank and Manila-based Asian Development Bank are assisting the project - which includes feasibility study. The BPC director, operations, said the expansion is necessary mainly to ensure the desired energy security and eco-friendly fuel for the country. The refinery is now meeting 30 per cent of the requirement of petroleum products. The rest 70 per cent is imported as finished products. Bangladesh imports oil mainly from Saudi Arabia, Kuwait, the United Arab Emirates, India and Malaysia.
State-run Eastern Refinery officials Monday said it has asked 25 international companies for their detailed proposals on implementing its expansion project worth US$ 1.0 billion. The Chittagong-based Eastern Refinery Limited (ERL) undertook a project to boost its production capacity by 3.0 million tonnes a year through BMRE (balancing, modernisation, rehabilitation and expansion). The ERL received as many as 33 proposals from firms who have earlier submitted their 'expression of interest' to finance the project through BMRE. "We've found 25 companies responsive and have asked for their 'request for proposal' (RFP)," Rezaul Alam, managing director of ERL, told the FE. The ERL selected eight financial institutions and 17 companies with vast experience in oil refinery expansion for the project. The ERL officials said it has issued letters recently asking the bidders to submit their RFPs within May 30 either on direct financing or on build-own-operate and transfer (BOOT) basis. Syed Mozammel Hoque, director operations of Bangladesh Petroleum Corporation (BPC), said: "We'll scrutinise their RFPs and send them to the cabinet for final approval." Earlier, the ERL sought expression of interest (EoI) from national and international bidders in the July-August period in 2010 to finance its expensive project. The BMRE project will raise the refinery's capacity three times to 4.5 million tonnes a year from the existing 1.5 million tonnes. The ERL earlier conducted a feasibility study by Pakistan-based consultancy firm Enar Tech Service limited for the biggest ever project of Eastern Refinery. Bangladesh imports up to 3.8 million tonnes of oil, including 1.2 million tonnes of crude to meet yearly demands. ERL officials expect the expansion programme to be completed in three years. Jeddah-based Islamic Development Bank and Manila-based Asian Development Bank are assisting the project - which includes feasibility study. The BPC director, operations, said the expansion is necessary mainly to ensure the desired energy security and eco-friendly fuel for the country. The refinery is now meeting 30 per cent of the requirement of petroleum products. The rest 70 per cent is imported as finished products. Bangladesh imports oil mainly from Saudi Arabia, Kuwait, the United Arab Emirates, India and Malaysia.