After rejection of a Chinese company's proposal on the Dhaka-Sylhet Highway expansion project, the government is now unwilling to continue with its next proposal for development of the Chittagong-Cox's Bazar Expressway.
Officials said the Ministry of Road Transport and Bridges (MoRTB) had already directed the Roads and Highways Department (RHD) to conduct feasibility study on the expressway, planned from Sitakunda to Cox's Bazar.
The government has to decide about funding sources of the important project, as there is no scope to continue non-binding deal with the Chinese company, they added.
RHD had a framework agreement with China Harbour Engineering Company Limited (CHEC) to develop the Dhaka-Sylhet Highway into a four-lane under government-to-government (G2G) arrangement in 2016.
MoRTB has similar proposal from the same company for constructing over US$ 2.0-billion Chittagong-Cox's Bazar Expressway, which was a condition for signing the framework agreement, said sources.
But the ministry decided to implement the Dhaka-Sylhet Highway four-lane project from its own fund early this year after the negotiation with CHEC failed.
MoRTB also informed the Economic Relations Division (ERD) about the decision of constructing the Dhaka-Sylhet Highway from the government fund.
The ministry had signed a memorandum of understanding (MoU) with CHEC following its interest in the Chittagong-Cox's Bazar Expressway.
The company conducted a feasibility and engineering study as well as completed the preliminary stage of technical and commercial proposal to construct the 248-kilometre expressway, also called marine drive.
However, the sources said the move of MoRTB was linked with the proposal of another Chinese company.
An official, however, said the feasibility study has been carried out to decide about funding of the project.
"We will decide later whether we will hunt for development partners for the project or construct the expressway from the government's own fund after the feasibility study," he told the FE.
He, however, said the non-binding MoU is no more effective, and there is no scope of giving the work to CHEC.
The company, however, was the Chinese government's recommended one for both Dhaka-Sylhet and Chittagong-Cox's Bazar projects, he added.
smunima@yahoo.com