Desk Report:
A $1 billion financing agreement for the Eastern Refinery Modernization and Expansion Project has been signed in the presence of Prime Minister Tarique Rahman and Islamic Development Bank (ISDB) Group Chairman Dr. Muhammad Al Jasser.
The financing agreement was signed between the Bangladesh government and the Islamic Development Bank (ISDB) Group at the Bangladesh Secretariat on Thursday (September 3, 2026). Dr. Md. Mizanur Rahman, Additional Secretary of the Economic Relations Division of the Ministry of Finance, on behalf of the Bangladesh government, and Anasi Aisami, Director General (Country Programs) of the organization, on behalf of the IsDB Group, signed the agreement.
If the project is implemented, the Eastern Refinery will have an additional capacity to refine 3 million metric tons of crude oil per year. This will significantly increase the country’s fuel oil refining capacity and reduce import dependence while strengthening energy security.
According to those concerned, if the project is implemented, it will be possible to meet about 45 to 50 percent of the country’s total demand for petroleum products domestically. This is expected to save foreign exchange, stabilize energy supply and have a positive impact on the country’s economic activities.
After the signing of the agreement, IsDB Group Chairman Dr. Muhammad Al Jaser paid a courtesy call on Prime Minister Tarique Rahman. During this time, various issues of mutual interest including further strengthening the development partnership between Bangladesh and IsDB, expanding cooperation in the economic development, investment and infrastructure sectors were discussed.
The meeting also discussed the possibility of further increasing IsDB’s cooperation in the development progress of Bangladesh. Those concerned hope that this large financing for the Eastern Refinery Modernization and Expansion Project will further advance the long-term development partnership of the two sides.
