The National Board of Revenue (NBR) has offered a tax exemption for the Dhaka Elevated Expressway, Public Private Partnership (PPP) project, to facilitate expediting its construction work.
The First Dhaka Elevated Expressway (FDEE) Company Limited will not have to pay tax on the interest amount of foreign loans taken from the Export-Import Bank of China and Industrial and Commerce Bank of China (ICBC).
The income tax wing of the Internal Resources Division (IRD) issued a Statutory Regulatory Order (SRO), dated October 28, 2021, exempting the tax until the loan tenure.
The FDEE has signed a USD Term Facility Agreement on March 30, 2019.
On February 25, 2020, two agreements on financial closure for the China-funded mega road infrastructure project were signed.
The FDEE is owned by China Shandong International Economic & Technical Cooperation Group Ltd (CSI), Sinohydro Cooperation and Italian-Thai Development Public Company Limited (ITD).
In April 2019, the FDEE signed a facility agreement with the two banks for financing the project.
China EXIM Bank will finance US$ 461 million and ICBC will provide US$ 400 million to implement the project.
The elevated expressway project, scheduled to be implemented by 2022, has so far made a little progress.
The total length of the under-construction expressway is 46.73km, including the 19.73km mainline.
