3.5-yr DEE support project now to take 16 years to complete

Authorities concerned have sought time extension for a support project of the Dhaka Elevated Expressway (DEE) that was supposed to be completed in three and a half years but 25 per cent of the works are yet to be completed after more than 14 years since its adoption in 2011.

Now, the Bridges Division of the Ministry of Road Transport and Bridges sought another extension, requesting an additional one and a half years to complete the remaining work by December next year as the existing deadline expires next month (June 2025).

If approved by the Planning Commission (PC), the total implementation period to be required for such a project would be 16 years, said officials at the Bangladesh Bridge Authority (BBA).

Officials said only 75 per cent work has been completed so far. To finish the remaining work, the Bridges Division has requested an additional 18 months without any increase in costs.

According to the letter to the PC, the construction work of the project under the Public Private Partnership (PPP) modality has slowed down due to legal disputes among the investor company's shareholders, leading the Chinese Exim Bank and ICBC to halt financing from January 2024.

Work is continuing on a limited scale with the shareholders' funding but the recent obstacles at Panthakunja Park and the Sonargaon-BUET link road have held back progress.

Delays in handing over land, the lack of construction approvals in the Dhaka South City Corporation areas, utility relocation issues, and alignment revisions linked to railway and MRT projects have further impeded the timeline.

"Given the current progress and remaining work, it is unlikely that the project will be completed within the existing timeline. Therefore, an extension of the project until 31 December 2026 is deemed necessary," says the letter, signed by Mohammad Abdur Rouf, Secretary of the Bridges Division and Project Director AHM Shakhawat Akhtar.

They also committed to complete the remaining works within the expected extended period, and the total cost of the project will remain unchanged, according to the letter.

Sources said that the bridges division in January 2011 signed an agreement worth Tk 89.40 billion with the Ital-Thai Development Public Company Ltd to construct the DEE under a PPP initiative.

However, the agreement was revisited in December 2013 with a new joint venture initiative of the First Dhaka Elevated Expressway (FDEE) Company Ltd., with participation by the Ital-Thai, China Shandong International Economic and Technical Co-operation Group (CSI), and Sinohydro Corporation Ltd.

The government is set to allocate Tk 24.13 billion in Viability Gap Funding (VGF), recognising that the infrastructure will significantly alleviate traffic congestion in Dhaka, cut travel time and costs, and contribute to the country's economic growth by enhancing the efficiency of the communication system.

The government inaugurated a 22.5km segment of the infrastructure from Hazrat Shahjalal International Airport to Farmgate in September 2023, consisting of 11.5km of mainline and 11km of ramp, out of the total projected length of 46.73km, including 19.73km of mainline and 27km of ramps.

Officials from the Bridges Division have expressed a strong commitment to inaugurate the full length of the project up to Kutubkhali. However, their efforts to meet this commitment have faced setbacks, resulting in a shortfall.

Project Director AHMS Akhtar said the legal issues over share transfers have been resolved by the Appellate Division and the Singapore International Arbitration Centre.

The process is now complete, with China Shandong holding 80 per cent and Sinohydro 20 per cent of shares. A new board and managing director have been appointed, and work is expected to resume soon, he added.

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