SC orders status quo on share transfer for Dhaka Elevated Expressway construction

The Appellate Division of the Supreme Court has ordered a status quo on the transfer of shares of Italian-Thai Development Public Company Limited, a partner in the construction of the Dhaka Elevated Expressway.

The parties have been asked to maintain the status quo until May 30, UNB reports.

The full bench of the Appellate Division, headed by Chief Justice Obaidul Hassan, issued the order on Thursday, during the hearing of an appeal filed by Italian-Thai Development Public Company Limited against the High Court's verdict.

On May 12, the High Court lifted the status quo on the transfer of shares of Italian-Thai Development Public Company Limited.

Advocates AM Amin Uddin, Sheikh Mohammad Morshed and Imtiaz Faruque appeared in the court on behalf of the Italian-Thai company. Advocate Mohammad Mehedi Hasan Chowdhury appeared for Sinohydro Corporation and Advocate Mostafizur Rahman Khan for creditor China Exim Bank.

It was learned that Italian-Thai Development Public Company Limited had filed a case in the High Court over a share dispute between the three partner construction companies. In the wake of this, the share transfer was put on hold. On May 12, the High Court dismissed the petition of the Italian-Thai company to lift the status quo. Later, the company appealed to the Appellate Division seeking a stay of the order.

The Appellate Division also asked to file a leave to appeal within this time. As a result, the share transfer cannot be done for now. However, there is no obstacle to the construction work.

However, in response to a question, Mehedi Hasan Chowdhury, lawyer for Sinohydro Corporation, said the China Exim Bank has informed that it will not provide money for the construction of the Elevated Expressway until the share transfer is done. As a result, the construction of the Elevated Expressway will remain suspended for now.

The project, a major public-private partnership (PPP), has partners from Bangladesh, Thailand and China, in addition to investment and construction. The three companies are Thailand-based Italian-Thai Development Public Company Limited, China's Shandong International Economic and Technical Cooperation Group and Sinohydro Corporation Limited.

Italian-Thai Development formed a company called First Dhaka Elevated Expressway (FDEE) Company Limited for the construction and operation of the expressway. The shares of the three partner companies is 51 per cent, 34 per cent and 15 per cent respectively. Bangladesh Bridge Authority is the executing agency of the expressway. The original construction cost of the project was estimated at Tk 89.4 billion (Tk 8,940 crore). According to the agreement, the investor companies will provide 73 per cent of the core construction cost. The remaining 27 per cent will be provided by the Bangladesh government.