The government's financial contribution to the Dhaka Elevated Expressway (DEE) project is likely to go up following a decision to acquire land for it at market price. The project will be implemented under Public Private Partnership (PPP).
The Bangladesh Bridge Authority (BBA), the executing agency of the Tk 88 billion Dhaka Elevated Expressway project, earlier decided to acquire land for the construction of 20-kilometre expressway as per fixed official rate.
Officials said the BBA has already invited expression of interest from the interested consultants to review the land price to be acquired at the present market price.
They said the decision by the BBA was taken to facilitate the private partner of the PPP project for getting money from international financing agencies.
"The project's private investor will not get any cooperation from the international financiers unless the land acquisition is done at market price. It is prime requirement of all the financiers like the World Bank, Asian Development Bank and Japan International Cooperation Agency," said a BBA official. He said like the Padma Bridge Project, the BBA will also acquire land for the DEE project after getting recommendations from the consultant.
However, sources said the decision is likely to increase the contribution of the government in the PPP project which earlier was fixed at 27 per cent as viable gap funding (VGF). Besides, a complication may also arise as the BBA has already handed over the fund to acquire land for starting the first phase of the construction.
Under the first agreement signed between the BBA and its foreign private partner Italian-Thai Construction Development Public Company Ltd, more or less 130 acres of land were required for acquisition. It, however, dropped to only around 35 acres after the project was revised and redesigned a month ago.
When asked about the increase in the government contribution as VGF in the DEE project, Project Director Kabir Ahmed said it would be clear after the survey by the consultant.
He said even if the contribution increases, the BBA has to do it to maintain the international standard and give the benefit to affected people who are very few in numbers.
"The DEE project will facilitate most of the citizens travelling in the city. But the increased price of land will remain within the country", the PD told the FE over phone.
The additional viability gap funding (VGF) which will be borne by the government in the PPP project has been increased by only Tk 640 million to Tk 24.13 billion. In the first agreement, the VGF was Tk 23.49 billion.
The BBA officials said the consultant after appointment will conduct the survey at current market price
The government and the Thai company signed the first concessional agreement on the DEE construction on January 19, 2011 at a cost of Tk 87 billion. But they revised the agreement by signing a new agreement on December 15 last. The revision has been necessary as the construction firm found it difficult to get finance for the costly infrastructure project as it did not meet the international financiers' requirements including land acquisition and resettlement plans. The revision was also mandatory as the government had changed the 20km route affecting the traffic volume.
After revision, the DEE will cross over the Dhaka city from Hazrat Shahjalal International Airport to Kutubkhali on Dhaka-Chittagong Highway through Kuril, Mohakhali, Tejgaon, Moghbazar, Kamlapur, Saidabad and Jatrabari.
In earlier route, the DEE was supposed to cross through private land in Demra area. Most part of the DEE will be built over the railway line.
Govt\\\'s share in DEE to rise on land acquisition at market price
Munima Sultana | Published: January 16, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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