CHATTOGRAM, Nov 11: Update of the existing Development of Project Proposal (DPP) for construction of the second unit of Eastern Refinery Limited (ERL) is progressing fast under the state-owned Bangladesh Petroleum Corporation (BPC) with the a foreign financer.
"I hope the update of DPP will be finalized in the first quarter of the next year,' said Engineer Sharif Hasnat, Managing Director of ERL.
He said, "We have been trying to finalise the DPP as early as possible.
The past Awami League regime had decided to construct the project with the Chattogram business conglomerate S Alam Group.
But the present government has taken the decision for construction of the second unit of ERL under the state-owned Bangladesh Petroleum Corporation (BPC) with a foreign financer.
With this end in view the Ministry of Energy and Mineral resources directed the BPC to amend the existing Development of project Proposal (DPP) afresh.
The Ministry of Energy and Mineral resources sent it to the BPC for complete the DPP as per fresh directives as soon as possible.
The Ministry of Energy and Mineral resources has been trying to build the second unit with Kuwait finance.
In this respect, the ministry has already started its process with Kuwait government for financing the project.
The financer is expected to be finalised very soon, said the ministry sources.
Earlier the present government had scrapped the proposal for signing a MoU (Memorandum of Understanding) with the S Alam Group for construction of the second unit under the Public Private Partnership with the conglomerate S Alam Group with an estimated cost of Taka 40,000 crore.
According to a reliable source of the state-owned Bangladesh Petroleum Corporation (BPC) submitted a final report of the MoU to the Ministry of Energy and Mineral resources earlier.
The Ministry of Energy sent the report to the Law Ministry for legal opinion in this respect, sources said.
But the Law Ministry has sent it back to Energy Ministry rejecting the proposal in August 28 last, sources said.
Earlier the BPC had prepared a Development Project proposal (DPP) for construction of the second unit of ERL that was submitted for approval by the Executive Committee of National Economic Council (ECNEC).
The total cost of the second unit of ERL has been enhanced to Taka 23,736 crore from earlier estimated amount of Taka 23,059 crore in the fresh DPP. As a result, the cost of the project has increased by around Taka 677 crore in the revised DPP framed by the BPC.
The Planning Commission had fixed the costing of Taka 23,059 crore for implementation of the project. Of the total cost, BPC will provide 30 per cent while the rest 70 per cent will be provided by the Government of Bangladesh.
