Dhaka-Ashulia Elevated Expressway project cost to rise by Tk 10b

The cost of the Dhaka-Ashulia Elevated Expressway (DAEE) project are set to increase by at least Tk 10 billion due to changes in design, utility shifting, and integration of ramps with other infrastructures, including the Hazrat Shahjalal International Airport (HSIA) and the Mass Rapid Transit (MRT) airport station.

Sources said the government will have to bear the additional cost, as China EXIM Bank will continue funding only 85 per cent of the contract value agreed with the project's Chinese contractor in 2022.

Officials confirmed that steps are underway to revise the development project proposal (DPP), following directives from the project's technical, evaluation, and implementation committees. However, they declined to disclose the total expected cost increase, estimating only that Tk 10 billion might be required, and the project tenure could be extended until June 2028.

The Bangladesh Bridge Authority (BBA) initiated the Tk 169 billion DAEE project after approval by the Executive Committee of the National Economic Council (ECNEC) in October 2017.

The cost was later revised to Tk 175.53 billion before physical construction began, nearly eight years after the project's initial approval and following a financing agreement with China EXIM Bank in November 2022.

The bank finances 85 per cent of the US$1.35 billion contract, while the government covers the remaining 15 per cent along with land acquisition, utility shifting, and variation works arising from design changes.

Project Director M Shafiqul Islam said an additional Tk 5.15 billion will be needed to shift 13 kV lines over 11 km and to increase the height of various piers and the bridge over the Turag River.

He added that the total cost increase is still being calculated, as multiple components have been added to the project design.

Originally, the 24-kilometre expressway included 14.28 km of connecting roads and over 10 km of ramps to link Dhaka city with northern, western, and south-western regions, including industrial areas and the Dhaka Economic Processing Zone (EPZ).

Officials said while the expressway already connects the city centre with HSIA through a ramp, residents on the other side of the airport - including Abdullahpur, Ashulia, Baipail, and the Dhaka EPZ - do not have direct access.

The revised plan will link the DAEE to the HSIA's third terminal through a U-loop, connect to the underground MRT Line-1 station at the airport, and cross the airport rail line via a ramp at Haji Camp. A trumpet interchange has also been added at Baipail to ensure smooth traffic flow.

The project cost will further increase due to the adjustment in the dollar exchange rate, from Tk 86 per US dollar in the original DPP to the current Tk 122.86 per dollar.

Upon completion, the DAEE is expected to connect 30 districts and boost the country's gross domestic product by an estimated 0.21 per cent. However, the project has fallen behind schedule, recording only 55.6 per cent progress to date.

smunima@yahoo.com