Govt mulls self financing of second ERL unit
CHATTOGRAM, Feb 13: The construction works of the second unit of the Eastern Refinery Limited (ERL) has been delayed as the government is considering implementing it with self financing.
According to a reliable source of the Ministry of Energy and Mineral Resources, the government had earlier decided to implement such a giant project with 60 per cent financing by self and the rest 40 per cent by a foreign agency.
The authority concerned could not yet confirm the foreign financing of the project.
So, the government is considering to implement the project with cent per cent own financing.
With the final decision of the government the authority will go for implementation of the project at the end of this year.
Meanwhile the experts of the Ministry have been reviewing the 'Front End Engineering Design' (FEED) of the project. After revision, the FEED will be approved by the Ministry before going to implementation.
The total cost of the project has been estimated at 1.7 billion US Dollar, sources said.
Implementation of such a giant project is not possible for the Bangladesh Petroleum Corporation (BPC) without the assistance of a foreign donor. So, Bangladesh Government was eager to look for a foreign financer for the project.
But recently, the government has been rethinking of self financing.
Meanwhile, the authorities have completed the primary works of the project including the FEED.
It may be mentioned that the Technip of France submitted the FEED to the BPC in June last year.
Meanwhile, the government has earlier signed an agreement with the Technip of France for preparation of documents on 'Front End Engineering Design (FEED) for the second unit of ERL. The proposal in this connection was approved in the Cabinet Purchase committee held in December, 2016.