Meghna bridge project faces delay

Construction of a new Meghna bridge on the Bhulta-Araihazar-Banchharampur road is likely to be delayed indefinitely following a lack of response from Korean investors in the proposed Public-Private Partnership (PPP) project.

The planned bridge will span 3.31 kilometres, with 4.5 km of approach roads and 2.5 km of river training work, at an estimated cost of Tk 75 billion.

The Bangladesh Bridge Authority (BBA) has decided to implement the US$882 million project as a government development initiative after withdrawing it from the PPP pipeline and has informed the PPP Authority of the move.

Officials said the decision came after the project's Request for Proposal (RFP) closed on May 10, following several extensions, without participation from three Korean companies - Hyundai, Daewoo, and KEC - which had initially shown interest during five joint platform meetings.

Sources indicated that the companies declined to participate because they did not accept the offers from the Bangladesh government. The investors had sought a revenue guarantee from the public partner and proposed 48 per cent Viability Gap Funding (VGF), while the BBA could only offer traffic guarantees.

The Finance Division has approved 18 per cent VGF, although government guidelines allow up to 40 per cent. The Meghna River already has two road bridges for vehicular traffic located at Bhairab-Ashuganj on the Dhaka-Sylhet Highway and on the Dhaka-Chattogram Highway.

Following a 2020 feasibility study, the BBA identified the Bhulta-Araihazar-Banchharampur route as suitable to accommodate increasing traffic on the Dhaka-Chattogram highway. The Cabinet Committee on Economic Affairs approved the project under the PPP on August 19, 2020.

Project Director Abul Hossain said the project remains a priority for the BBA. Steps have been taken to formulate a Development Project Proposal (DPP) after withdrawing it from the PPP model.

He also noted that while Korean private investors have withdrawn, the Korean government has expressed interest through the Korean Economic Development Cooperation Fund.

Officials warned that the delay may require a review of the feasibility study and a lengthy procedure to complete DPP approval.

smunima@yahoo.com