The construction of Dhaka bypass expressway begins today (Thursday) a year after the signing with a Chinese concessionaire.
The expressway will be built by China-led joint-venture under the Public Private Partnership, or PPP.
The state-run Roads and Highways Department, or RHD, has organised a groundbreaking ceremony for the 48-kilometre road at the Kanchan bridge.
This is the road developer's first such a project under PPP, which reached the construction stage, though the originally-conceived Dhaka-Chattogram elevated expressway project was shelved this year.
The road transport and bridges minister is likely to be present at the groundbreaking ceremony.
The department signed the concessionary agreement with Sichuan Road and Bridge (group) Co. Ltd on December 4, 2018 to construct the expressway starting from Joydevpur, Debugram, Vulta and Modonpur.
The Sichuan Ltd will work along with Unique Dream Consultant and Shamim Enterprise Limited of Bangladesh.
Officials said the road will facilitate industrial belts around Dhaka and greater Mymensingh area and ease links with Chattogram, northeastern Sylhet and 16 North Bengal districts bypassing the capital city.
But officials said the PPP project would be able to bring 50 per cent of funds from foreign sources.
According to the financial closure (report) submitted by the concessionaire, China Development will provide half the Tk 31 billion cost. More than 47 per cent will come from local funding sources, including state-owned Bangladesh Infrastructure Finance Fund Limited.
The BIFFL will provide Tk 12 billion, which is 40 per cent of the cost. Viability gap funding has been fixed 7.36 per cent, which is to be Tk 2.23 billion.
The RHD selected the Chinese joint venture from the two other companies considering the lowest gap funding.
The PPP Authority and RHD officials said the Dhaka bypass expressway will help vehicles cross 48 kms in 40 minutes.
