Four years already gone by before initially scheduled start of construction, the government agency concerned now moves to revise the Dhaka-Ashulia Elevated Expressway project mainly for extending time and cost, insiders say.
The Bridges Division signed commercial contract with a Chinese company, CMC, four years ago for building the overhead motorway on the most congested transport corridor to the capital, but the project works couldn't yet be started, they said Saturday.
The division under the big-budget road transport and bridges ministry has recast its project with the cost hike in major components of the original Tk 169.01 billion expressway project, meant for leapfrogging perennial traffic impasse at the crossroads on northbound routes.
It has recently requested the Planning Commission for revising the project by granting four more years to complete the entire works.
According to Bangladesh Bridges Authority (BBA) of the Bridges Division, it has now sought Tk 6.56 billion in additional funds for major nine components of the project and four more years to complete the works.
"The Tk169.01-billion-cost project was approved by the ECNEC in 2017. The Bridges Division has failed to start construction work in last four years. Now it is seeking revision," says a senior PC official.
Since the DEE construction start has been delayed for more than four years, its cost would escalate naturally, he adds.
If the project was started in time, the extra money from the public exchequer need not be required, the official notes.
The BBA signed commercial contract with the Chinese company for building the Chinese government- supported 24-kilometre elevated expressway from Dhaka airport to Chandra crossroads through Ashulia.
Meanwhile, although the funding was not confirmed under the G-to-G or government-to-government arrangement, the BBA signed the commercial contract with the Chinese company for the expressway, says a senior government official.
When asked, a Bridges Division official said: "Since the contract was signed with the Chinese firm nearly four years back in 2017, now the contractor is claiming higher funds for its construction works due to price hike of different construction materials.
"In the meantime, the financial arrangement with China has also changed. We also need to revise cost of several components of the project. So, we are forced to revise the project," he said, requesting anonymity.
According to the loan deal, Chinese EXIM Bank will provide 85 per cent of the project cost for the elevated expressway instead of its earlier-assured 100- per cent cost and the Bangladesh government is to provide 15 per of the remaining cost.
The Economic Relations Division in October 2021 signed a US$1.2 billion loan agreement with China EXIM bank for bankrolling the expressway project.
According to BBA's revised proposal, it has extended the cost by Tk5.12 billion to Tk 84.03 billion for elevated expressway part of the project, by Tk 325.11 million to Tk 5.33 billion for ramp construction, by Tk 111.99 million to Tk 1.83 billion for Nabinagar flyover building, and by Tk 419.37 million to Tk 6.88 billion for at-grade road-construction works.
The Authority has also increased the cost by Tk 197.35 million to Tk3.24 billion for 2-lane bridge construction, by Tk383.36 million to Tk 6.29 billion for constructing overpass/flyover, drain and duct & toll plaza, and by Tk95.90 million to Tk 2.99 billion for consultancy services in the revised project proposal.
Meanwhile, although the costs for paying interest during construction period, and in some other components have been reduced, the overall cost of the proposed revised project has been increased to Tk 171.63 billion, 1.55 per cent higher than the original allocation of Tk 169.01 billion.
The PC official said, "We are scrutinizing the revised project proposal of the Bridges Division. If we find okay, then we will recommend revision by the ECNEC."
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