The Islamic Development Bank (IsDB) plans to invest $1 billion to modernise and expand Eastern Refinery, Bangladesh’s only state-owned oil refinery, amid an acute fuel crisis. IsDB Chairman Dr Mohammed Al Jasser is scheduled to visit Dhaka for three days from September 2, when major energy-sector investment agreements are expected to be discussed.

During the visit, Al Jasser will meet Prime Minister Tarique Rahman, Finance Minister Amir Khasru Mahmud Chowdhury, and Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku. An agreement may also be signed for a 220-megawatt solar power and livelihood development project in Sonagazi, Feni, valued at $143 million.

Bangladesh’s annual fuel-oil demand is about 7 million tonnes, with 95% dependent on imports, according to the Bangladesh Petroleum Corporation. Eastern Refinery receives about 1.5 million tonnes of crude oil for processing, while 5-5.2 million tonnes of refined diesel, furnace oil and octane are imported directly. The refinery normally processes 4,500 tonnes of crude daily, but output has been reduced because of the crisis.