The government will also spend Tk4,885cr for land acquisition and other managerial work. The total cost therefore stands at Tk13,825cr
The Road Transport and Bridges Ministry has given Italian Thai Development Public (Ital-Thai) Company Ltd, tasked with the construction of the first Dhaka Elevated Expressway, six months to gather funds, after the government had decided to cancel the deal altogether.
The construction work of Dhaka Elevated Expressway (DEE) is progressing slowly owing to fund crisis, having only finished 7% of the work in 6 years.
Prime Minister Sheikh Hasina inaugurated the construction of the 21km elevated expressway on April 30, 2011 to be completed by June 2014.
The Bangladesh Bridge Authority and Ital-Thai Ltd signed a Tk8,703cr deal in 2011 to construct a four-lane expressway under the Public Private Partnership (PPP) with a condition of 25 years concession period from the completion date of the project to collect toll.
However, Ital-Thai Ltd started facing financial difficulties since signing of the deal owing to being unable to access financiers for the project.
They then signed a $1.06 billion contract with China Railway Construction Corporation (CRCC) for building the project in 2015, but the CRCC was unable to continue with Ital-Thai.
Later the construction firm signed a deal with the Chinese Investment Global Foundation (ASIA) Company Ltd on December 29, last year. However the firm was unsuccessful in procuring the loan from the lender.
The Bangladesh Bridge Authority had asked for all loan documents, but Ital-Thai Ltd failed to provide them by May this year.
The Bangladesh Bridge Authority then decided to cancel their work permit for the elevated expressway. When Ital-Thai Ltd was informed about the decision, they convinced the ministry that they acquire funds within six months.
In July, a meeting was held at Setu Bhaban in Dhaka between Road Transport and Bridges Minister Obaidul Quader and president of Ital-Thai Premchai Karnasuta.
After the meeting, Bridges Minister Obaidul Quader told the Dhaka Tribune: “We decided initially to cancel the deal with the Ital-Thai because they have failed to collect funds for the PPP project.”
“But the president of the company confirmed that they will get a new loan from China Development Bank,” he added.
“So we have decided on six months for them to collect the fund. They have assured us construction will continue till then on self-financing of $10 million,” the minister said.
Premchai Karnasuta, president of Ital-Thai, made no comment on the matter.
Alignment of the expressway
According to the design, the route of the 21km expressway is Hazrat Shajalal International Airport-Kuril-Banani-Mohakhali-Tejgoan, Moghbazar, Kamalapur-Saidabad-Jatrabari and Kutubkhali of Dhaka-Chittagong highway.
The project will be implemented in three parts: Part 1 is airport to Banani, part 2 is Banani to Moghbazar and part 3 is Moghbazar to Kutubkhali, alongside the existing rail track.
The total length of the mainline is 21km and the length of the ramp is 27km. The expressway will have 31 ramps to connect the different areas of the city. When the project will be completed, commuters will be able to move directly to the Chittagong highways from the airport.
Progress of the construction
The joint-venture company has built a construction yard at Kawla area on airport road and the government has been working on land acquisition, but the main construction work has been pretty stagnant.
Quazi Md. Ferdous, the project director, told the Dhaka Tribune: “The project has made snail’s progress due to fund crisis, which has recently been solved. So now the project will move quickly.”
“Besides, land acquisition is complete for the first phase and is ongoing for the second phase,” he added.
Funding
Bridge Division officials said the initial cost was estimated at Tk8,703cr. However the revised cost as of December 15, 2013 was set at Tk8,904cr.
According to the agreement, Ital-Thai will spend Tk6,527cr to construct the mainline and Tk2,413cr will be provided by the government.
The new deadline of the project is December 2020. The government has already announced the first phase (airport-Banani) will be open for traffic by December 2019.
The government will also spend Tk4,885cr for land acquisition and other managerial work. The total cost therefore stands at Tk13,825cr.
Source: Dhaka Tribune
