2nd unit of Eastern Refinery Limited

Indian firm to be awarded Tk 111 crore consultancy

The Indian firm, Engineers India Limited (EIL), is going to be appointed as consultant for the second unit of Eastern Refinery Limited (ERL), sources with the Bangladesh Petroleum Corporation (BPC) said.
EIL is expected to be rewarded the job at Tk 110.61 crore under the unsolicited deal. BPC will sign a contract with EIL today at a function, which will be attended by Indian State Minister for Petroleum and Natural Gas, Dharmendra Pradhan. State Minister for Power and Energy, Nasrul Hamid, will also be present.
Meanwhile, the French firm Technip, which had set up the first unit of ERL, has already expressed its interest to be the Engineering, Procurement and Construction (EPC) contractor of the ERL-2 project and negotiations are in the final stages, according to sources at Energy and Mineral Resources Division (EMRD). The BPC, in November 2015, had already signed a Memorandum of Understanding (MoU) with Technip. “We are now negotiating with the French firm about the terms and conditions,” said an official with EMRD.  
Sources at the Economic Relation Division (ERD) of Ministry of Finance told The Independent that Wuhuan Engineering Co Ltd of China had also sent a letter to the ERD expressing its interest in the EPC contract for the ERL. In a letter sent to the Senior Secretary of the ERD, Liu Jiamning, Vice Chief Economist of Wuhuan Engineering Co Ltd, said that the Chinese Government has given its consent to extend financial support for the ERL-2 on preferential buyers credit. ERD has forwarded the letter to EMRD and EMRD to BPC to evaluate Wuhuan’s proposal.
When asked, officials with the BPC, however, didn’t comment on Wuhuan’s proposal saying that the negotiation with Technip is in an advanced stage and they are not considering other options.
With the implementation of the Tk 15,300 crore ERL-2 project, the country will be able to triple its capacity to refine 45 lakh tonnes of petroleum annually. This will save Tk 1,500 crore foreign currency from fuel imports per year.
According to officials, the BPC will have to import only 10 lakh tonnes of petroleum fuels once this project is completed. Bangladesh spent Tk 26940.85 crore to import 53.93 lakh tonnes of refined and crude oil during the last fiscal year, according to the state-run oil monopoly.

2nd unit of Eastern Refinery Limited

Indian firm to be awarded Tk 111 crore consultancy

The Indian firm, Engineers India Limited (EIL), is going to be appointed as consultant for the second unit of Eastern Refinery Limited (ERL), sources with the Bangladesh Petroleum Corporation (BPC) said. EIL is expected to be rewarded the job at Tk 110.61 crore under the unsolicited deal. BPC will sign a contract with EIL today at a function, which will be attended by Indian State Minister for Petroleum and Natural Gas, Dharmendra Pradhan. State Minister for Power and Energy, Nasrul Hamid, will also be present. Meanwhile, the French firm Technip, which had set up the first unit of ERL, has already expressed its interest to be the Engineering, Procurement and Construction (EPC) contractor of the ERL-2 project and negotiations are in the final stages, according to sources at Energy and Mineral Resources Division (EMRD). The BPC, in November 2015, had already signed a Memorandum of Understanding (MoU) with Technip. We are now negotiating with the French firm about the terms and conditions, said an official with EMRD. Sources at the Economic Relation Division (ERD) of Ministry of Finance told The Independent that Wuhuan Engineering Co Ltd of China had also sent a letter to the ERD expressing its interest in the EPC contract for the ERL. In a letter sent to the Senior Secretary of the ERD, Liu Jiamning, Vice Chief Economist of Wuhuan Engineering Co Ltd, said that the Chinese Government has given its consent to extend financial support for the ERL-2 on preferential buyers credit. ERD has forwarded the letter to EMRD and EMRD to BPC to evaluate Wuhuans proposal. When asked, officials with the BPC, however, didnt comment on Wuhuans proposal saying that the negotiation with Technip is in an advanced stage and they are not considering other options. With the implementation of the Tk 15,300 crore ERL-2 project, the country will be able to triple its capacity to refine 45 lakh tonnes of petroleum annually. This will save Tk 1,500 crore foreign currency from fuel imports per year. According to officials, the BPC will have to import only 10 lakh tonnes of petroleum fuels once this project is completed. Bangladesh spent Tk 26940.85 crore to import 53.93 lakh tonnes of refined and crude oil during the last fiscal year, according to the state-run oil monopoly.