Bangladesh Secures $1.00429B Deal with IsDB for Eastern Refinery Upgrade
Bangladesh has signed a $1.00429 billion financing agreement with the Islamic Development Bank for the Eastern Refinery modernization and expansion project. The signing ceremony took place in Dhaka in the presence of Prime Minister Tarique Rahman and IsDB Group Chairman Dr. Muhammad Al Jasser.
The government of Bangladesh has officially signed a significant financing agreement amounting to 1.00429 billion dollars with the Islamic Development Bank, commonly known as the IsDB. This major international financial arrangement is specifically designated for the much-anticipated modernization and expansion project of the Eastern Refinery, which includes the development of its second unit.
The high-level formal signing ceremony was successfully held on September 4, 2026, at the Secretariat located in Dhaka, Bangladesh. The momentous event took place under the distinguished presence of Prime Minister Tarique Rahman and the Chairman of the Islamic Development Bank Group, Dr. Muhammad Al Jasser, alongside other key officials.
The Eastern Refinery, also widely recognized by its acronym ERL, holds a foundational history in the country's industrial sector. It was originally established back in the year 1968, situated in the coastal area of Patenga in Chattogram, and has served as a critical hub for petroleum processing in the region for decades.
According to the verified operational details of the facility, the Eastern Refinery currently operates with a restricted annual refining capacity of 1.5 million tons. This international funding partnership with the Islamic Development Bank is expected to address these capacity constraints through comprehensive modernization and expansion initiatives for the second unit.
