Bangladesh’s decades-long wait for its first post-independence crude oil refinery continues as the current interim government shows little progress in moving the project forward.

Despite growing demand for petroleum and mounting foreign exchange spent on importing refined oil, successive governments have failed to establish a refinery since independence in 1971. The country still relies on Eastern Refinery Ltd (ERL), built in 1968 during the Pakistan era, for its limited domestic refining needs.

Industry insiders blame institutional negligence and the influence of vested interest groups that benefit from refined oil imports for the prolonged delay.

According to feasibility studies by Engineers India Limited and a Front End Engineering Design (FEED) report by Technip, the planned refinery, with a capacity of 3 million tonnes per year, is projected to save $19 per barrel and recover investment within seven years.

The Bangladesh Petroleum Corporation (BPC) is seeking foreign financing to cover Tk 254 billion of the Tk 364 billion estimated project cost. The remaining Tk 110 billion will come from BPC’s own funds.

“We are searching for foreign funding to implement the project,” BPC Chairman Amin Ul Ahsan told The Financial Express. “Once secured, we’ll float tenders to appoint an EPC contractor.”

The Energy and Mineral Resources Division is in talks with lenders, including ADB, IsDB, AIIB, and the World Bank. However, delays in securing financing and contractor selection have plagued the project since its first proposal in 2010.