Negotiations with China to finance full cost of Dhaka-Ashulia elevated expressway are likely to be capped with a US$1.12-billion agreement anytime soon, officials said.
Leaving aside the vehicle-purchase portion of the project cots, they added, the Chinese side finally has agreed to finance around 83 per cent of the outlay with a loan from EXIM Bank at 2.0 percent interest.
Sources said the negotiations with the bank that started last year after a long wait reached the final stage agreeing to provide US$1.12 billion out of the total civil-works cost.
According to Development Project Proposal (DPP), the project cost was estimated at Tk 169.01 billion with Tk 109.50 billion shown as foreign funds.
Bangladesh Bridge Authority (BBA) had estimated the foreign loan with 100 percent cost of civil works. Now the bank agreed to provide Tk 90.88 billion, said a source.
The Authority had first sought 100 percent project cost in loan at 2.0 percent interest. But the Chinese side wanted to lend 85 per cent of the project cost at 3.0 per cent interest like in other projects in power sector.
However, during the negotiation, the bank refused to provide funds for three components, including purchase of vehicles, lowering the total funding to slightly over 83 per cent with 2.0 per cent interest.
According to sources, the draft on final negotiations now awaits vetting from Law Ministry.
After the vetting is done, the BBA will take preparation to sign a contract with the Chinese Exim Bank, they added.
"It may take a month or few days more to sign a contract with EXIM Bank as all necessary queries for vetting have also been met," said the source.
The Bangladesh Bridge Authority has made the move to construct the 35- kilometre Dhaka-Ashulia Elevated Expressway through Abdullahpur-Baipail-Nabinagar-Chandra EPZ crossing after completing feasibility study in 2016.
Of the total length, elevated part will span 24 kilometres from Kawla of Airport to Savar EPZ. Some 10.84km ramp and 14.28km surface roads have been interpolated into the project.
However, the project period is going to end next year as loan negotiations consumed longer-than-expected time.
The project got ECNEC go-ahead on October 24, 2017 with the target to complete by June 2022 based on a Chinese agent-company's proposal to construct the expressway on a government-to-government (G2G) basis.
The Chinese firm, North China Municipal Engineering Design and Research Institute Company Ltd has, meanwhile, selected three Chinese civil engineering firms to carry out the work as sub-contractors.
They are China Major Bridge Engineering Group, Jiangsu Provincial Transportation Engineering Group and China Railway 16th Bureau Group Company.
Project-office sources say though the project took time to start, there has been good progress on the land-acquisition works.
smunima@yahoo.com