Row over share of first DEE: Both parties file for int'l arbitration

The disagreement among partners over share of the first Dhaka Elevated Expressway (DEE) is yet to be resolved as both parties have gone to international arbitration for justice.

The Italian-Thailand Development Public Company (ITD) as the key builder and two other Chinese companies as its partners lodged complaints with the Singapore International Arbitration Centre (SIAC) against each other.

The move was made after the High Court vacated a case filed by the ITD against its Chinese rivals' claim for the entire share of the expressway on September 01.

The SIAC is likely to hear the petition on October 08, according to official sources.

They said the issue has already slowed down progress in the work of the country's first expressway being built under the public-private partnership (PPP) model.

The ITD was the key concessioner of the DEE project after the Bangladesh Bridge Authority (BBA) had signed a Tk 87.06-billion concessionaire agreement in 2011.

However, the Thai company sold its 34-per cent share to China Shandong International Economic and Technical Cooperation Group (CSI) and 15 per cent to Sinohydro Corporation Ltd respectively in 2019.

The shares were sold as the ITD failed to manage funds to construct the 19.7-kilometre access control highway in time.

Sources said the problem arose after the ITD's failure to pay its instalment of the loan as per the deal done with two Chinese banks.

The Export Import Bank of China (CEXIM) and the Industrial and Commercial Bank of China (ICBC) have lent $861 million for the First DEE Company as loan after the Thai and two Chinese firms become guarantors.

But it has condition-if any of the guarantors fails to pay due interest in due time, another will pay it and the defaulter will adjust its share with two other companies within five working days in exchange.

Official sources said the ITD was yet to manage its funds for repayment of the loan. The Chinese companies claimed the share and the Chinese banks have stopped lending anymore since January.

The CSI and the Sinohydro have completed their payments within the stipulated time.

The expressway is supposed to be connected with Dhaka-Chattogram Highway at Kutubkhali from Kawla expecting to handle daily traffic of more than 80,000.

Although the entire corridor was not ready for traffic movement, the company has already earned Tk 1.04 billion in a year after 11.7 km of the expressway was opened in September 2023.

But the company has lagged behind its schedule to complete the work in three-and-a-half year to enjoy its total concessional period of 25 years.

The concessional period officially began in January 2020.

As the progress has been slow, Road Transport and Highways Division (RTHD) secretary Mohammad Ehsanul Haq along with PPP Authority CEO and DEE project officials sat with the companies to review the overall situation.

It is learnt that the RTHD has planned to seek support of Thai and Chinese embassies with an eye to resolving the case amicably.

The DEE project has so far recorded 75-per cent work progress.

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