The newly-established China Petroleum Pipeline Engineering Co. Ltd (CPP) is currently building the country`s lone SPM system instead of the China Petroleum Pipeline Bureau (CPPB).
The CPP was established in 2017 following the restructuring of its predecessor, CPPB, said a senior official of state-run Bangladesh Petroleum Corporation (BPC).
He said the CPP is expected to complete the project titled, `Installation of single point mooring (SPM) with double pipeline` with Chinese concessional loan of around US$554 million by 2020.
Of the total loan amount, China is set to provide $467.84 million as preferential buyers` credit and the remaining $82.5 million as soft loan.
Exim Bank of China would provide the money to be repaid within 20 years at an annual interest rate of 2.0 per cent with five years` grace period.
Once the SPM is built, the government is expected to save around Tk 10 billion a year by directly offloading imported petroleum products at its Chittagong refinery depot.
Currently, BPC cannot offload imported fuel oil at its Chittagong refinery depot directly.