Flag raised over RHD's Tk 5.16bn per km highway cost estimate

The Roads and Highways Department (RHD) has proposed a cost of Tk 5.16 billion per kilometre for widening a 23.5-km stretch of the Chittagong-Cox's Bazar highway, according to officials.

This has prompted the Planning Commission to express reservations about the inflated cost estimate.

According to state-run road developer RHD, the total cost of the road-widening project will be Tk 121.36 billion.

The Planning Commission has recommended that RHD trim the expenditure, which is significantly higher than similar projects in Bangladesh.

In defence, RHD points out that the Japan International Cooperation Agency (JICA) conducted the feasibility study and the construction will adhere to international standards.

Besides, RHD officials mention that JICA will provide around Tk 88.72 billion in funds for the construction.

Upon receiving the proposal, the Planning Commission convened a Project Evaluation Committee (PEC) meeting, during which it called for a revision of the costs associated with various components of the Development Project Proposal (DPP).

"We've already scrutinised the project. The construction cost of the highways is comparatively higher than other similar projects in Bangladesh. We have instructed RHD to make it rational," said a senior Planning Commission official.

The project evaluation meeting has already recommended reducing nearly Tk 26 billion from the estimated Tk 121.36 billion cost.

The Dhaka-Mawa Expressway - another costly road constructed by RHD - had a total cost of Tk 110 billion for a 54.7 km length, resulting in a per-kilometre construction cost of around Tk 2.01 billion.

The latest on the RHD construction chart, the 23.5 km patch of the Chittagong-Cox's Bazar highway will be widened to a 4-lane road with an expansionary provision of 6-lane, extending from Chattogram to Cox's Bazar via Patia, Dohazari, Keranihat, Lohagara and Chakaria.

According to RHD officials, the heavy traffic expected in the future due to the development of the Matarbari deep seaport will necessitate road widening. The port is set to operate at full capacity from 2026.

When asked about the higher cost of the road construction, an RHD official explained that JICA conducted a feasibility study, which recommended the cost.

Requesting anonymity, he said, "The cost is estimated based on Japan-standard road construction schemes, which appear to be higher."

Another government official involved in the project approval process pointed out that the cost of road widening is higher than that of other 4-lane projects supported by various development partners, including the World Bank and the Asian Development Bank.

The 132-kilometre-long Chittagong-Cox's Bazar Road will become a crucial corridor in the near future due to the Matarbari seaport in Maheshkhali, Cox's Bazar.

Although RHD has proposed to widen a 23.5km stretch of the highway, the remaining roads are planning to be widened through a Public Private Partnership (PPP) model.

Under the Official Development Assistance (ODA) loan package, JICA in March of this year confirmed a loan of around 380 million for Phase-I of RHD's Chittagong-Cox's Bazar road improvement project.

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