The Indian firm Engineers India Limited (EIL) is going to be appointed as the consultant for the second unit of Eastern Refinery Limited (ERL), sources with the Bangladesh Petroleum Corporation (BPC) said.
BPC will sign a contract with EIL on April 19. EIL is expected to be rewarded the job at Tk 110.61 crore under the Speedy Supply of Power and Energy (Special Provision) (Amendment) act, 2015.
Indian state minister for petroleum and natural gas Dharmendra Pradhan is expected to attend the signing ceremony, while state minister for power, energy and mineral resources Nasrul Hamid will attend the function.
Meanwhile, the French firm Technip which had set up the fist unit of ERL has already expressed its interest to be the engineering, procurement and construction (EPC) contractor of the ERL-2 project.
Sources with the Energy and Mineral Resources Division (EMRD) said that the negotiation with the Technip on being the EPC contractor is in final stage.
The BPC in November, 2015 had already signed a Memorandum of Understanding (MoU) with Technip.
We are now negotiating with the French firm about terms and conditions to implement the project, said an official with EMRD.
Sources with the Economic Relation Division (ERD) of Ministry of Finance told energynewsbd.com Wuhuan Engineering Co Ltd ofChina also had sent a letter to the ERD expressing its interest to get the EPC contract for the ERL.
In a letter sent to the Senior Secretary of the ERD, Liu Jiamning, Vice Chief Economist of Wuhuan Engineering Co Ltd said that the Chinese government has given consent to give financial support for the ERL-2 on preferential buyers credit.
ERD has forwarded the letter to EMRD and EMRD to BPC to evaluate Wuhuan’s proposal.
When asked, officials with the BPC however did not comment on the Wuhuan’s proposal saying that the negotiation with Technip for EPC contract is in advanced stage and they are not thinking about any other option.
With the implementation of ERL-2, the country will be able to triple its capacity to refine 45 lakh tonnes of petroleum annually through implementing this Tk 15,300 crore project that will help save Tk 1,500 crore foreign currency from fuel imports per year.
The BPC will import only 10 lakh tonnes of petroleum fuels after setting up the ERL unit-2, concerned official said.
It spent Tk 26940.85 crore to import 53.93 lakh tonnes of refined and crude oil during last fiscal year, according to the state-run oil monopoly.