IDB to fund $130 million Bangladesh refinery upgrade

Jeddah-based Islamic Development Bank (IDB) will provide $130 million for upgrading Bangladesh's Eastern Refinery Limited (ERL) terminal some 40 km (25 miles) from Chittagong port, a senior official said on Tuesday. The upgrade would help prevent spillages of crude oil and refined petroleum products during unloading large tankers, promote eco-friendly technology and ensure cleaner environment for the coastal waters of Bangladesh.
It will also eliminate losses due to decanting by feeder vessels and demurrage charges levied by large vessels at the outer anchorage due to delay in unloading, the official said. The state-run ERL, with a capacity to refine 1.5 million tonnes of oil a year, is the only refinery in Bangladesh, which imports up to 3.8 million tonnes of fuel annually, including 1.2 million tonnes of crude.