The government has once again extended the time by three more months for submission of a report by Thai contractor on sources of funding for constructing a 46-kilometre Dhaka Elevated Expressway (DEE).
With this, sources said, the company got extension for at least eight times for submitting the financial statement as the concessionaire of the first public-private partnership (PPP) project.
They said Bangladesh Bridge Authority (BBA) has already approved the time extension until March as sought by Italian-Thai Public Development Ltd, the concessionaire of the PPP project.
The government took up the DEE project under the strategic transport plan in 2010 and signed the first concessionaire agreement in January 2011. But the agreement was revised and signed again in December 2013 following changes in the design and routes.
According to the contract, the DEE was planned from Hazrat Shahjalal International Airport to Shonirakhra of Dhaka-Chittagong highway touching five points in the city.
The corridor from HSIA to Banani was supposed to be completed in the first phase while Banani to Kamalapur railway station in the second phase and the rest in the third phase during three and a half years.
The project cost went up to Tk 89.40 billion from Tk 87.03 billion.
Officials said as the first PPP project on infrastructure, extra time has been given to the concessionaire considering many things.
However, sources said the government has no option but to extend the time for avoiding 'conflicting situation' as if the issue goes to international arbitration.
As the Thai company could not manage funds, it is learnt that the government wants the company to go back itself.
Road Transport and Bridge Minister Obaidul Quader told the reporters before extending the time up to December 2016 that though the government wanted to scrap the agreement following poor performance of the Italian-Thai company, the time was extended following request from Thai high-ups.
According to the PPP, the concessionaire of a PPP project has to submit financial closure before starting the construction to state sources of funding by the company apart from its equity.
Since the signing of the first contract in 2011, the Thai company, however, could not manage funds from any development partners or others. It stated that the PPP project was not designed as per proper rules and regulations.
However, after signing of the revised agreement at the end of 2013, the company announced signing the contract with a Chinese company in July 2017 which would work as a subcontractor.
But it did not go ahead with the deal.
As the Italian-Thai has already been engaged in metro rail viaduct construction work, sources said, the government doesn't want to take harsh steps to damage another important project.
The Italian-Thai company got the construction of viaduct of 10-km corridor of Mass Rapid Transit Line-6 last year through the tendering process.
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