The Bangladesh Petroleum Corporation (BPC) is nearing the finalization of a Memorandum of Understanding (MOU) with the S Alam Group for the construction of the second unit of the Eastern Refinery (ERL) under a Public-Private Partnership (PPP) arrangement. The estimated cost of the project is Tk 40,000 crore. A seven-member committee formed by BPC has completed the final report, expected to be submitted by the end of the month.
The proposal from S Alam Group, submitted to the Prime Minister’s Office in October last year, outlines a joint venture on an 80-20 equity basis, utilizing land owned by ERL in Chattogram. Following this proposal, a committee was formed to negotiate terms, including technical and financial aspects, management strategies, and equity portions.