The construction of the long-awaited Dhaka Elevated Expressway project is set to resume in August, after being stalled due to disputes among three foreign contractors. The 20 km expressway, spanning from Kaola near the airport to Jatrabari, had its work halted at Moghbazar.
The Italian-Thai Development Public Company (ItalThai), the main contractor, confirmed the resolution of disputes and financing issues. The company has now secured the necessary funds to complete the project. As of May, the overall progress stood at 74.81 percent.
Prime Minister Sheikh Hasina inaugurated the 11.5 km section from Kawla to Farmgate on September 2 last year, ahead of the national elections. The expressway has been operational since then, with the down ramp at Karwan Bazar section opened on March 20. This section has been handling twice the estimated traffic volume.
The expressway's construction, with 25 percent remaining, was halted last March. ItalThai has now secured approximately $950 million from multiple sources, exceeding the remaining construction costs. This new financing will not only complete the project but also repay and consolidate previous loans.
Previously, Exim Bank of China and ICBC halted loan waivers in January after ItalThai missed an interest installment. This led to a directive to transfer majority shares from ItalThai to CSI and Sinohydro, resulting in legal battles in Singapore and Dhaka. The project completion date has been extended to June 2025.
The Dhaka Elevated Expressway, Bangladesh's second Public-Private Partnership (PPP) project, follows the Mayor Hanif Flyover project. First Dhaka Elevated Expressway Company Limited, a private partner, is involved in the construction. ItalThai holds 51 percent of the company's shares, while China Shandong International Economic and Technical Cooperation Group (CSI) and Sinohydro Corporation Limited own the remaining 49 percent.
The project’s total construction cost is estimated at Tk 8,940 crore. Investment institutions will cover 73 percent of the cost, with the Bangladesh government providing the remaining 27 percent as Viability Gap Funding (VGF).
The project, divided into three phases, has seen the first phase from Kawla to Banani railway station completed. The second phase, from Banani railway station to Moghbazar rail crossing, is 79.59 percent complete. The third phase, from Moghbazar rail crossing to Qutubkhali on the Dhaka-Chittagong highway, has achieved 12.40 percent progress. Overall, the project is 74.81 percent complete. The half-opened section, launched 10 months ago, currently accommodates over 50,000 vehicles daily, surpassing initial estimates.
Dhaka Elevated Expressway Project Director AHM Shakhawat Akhtar stated, "There is a hearing (in the Appellate Division) next month." He added, "A resolution may come from the arbitration meeting in Singapore before that. We hope to resume full-scale work soon and complete the entire project by June next year."
(The article was published on print and online versions of The Bangladesh Pratidin on July 13, 2024 and has been rewritten in English by Tanvir Raihan)
