The Asian Development Bank (ADB) is likely to provide the second-tranche loan worth US$300 million for the long-delayed Dhaka-Sylhet Highway construction project, which has been struggling for five years, officials said on Friday.
"We are going to sit in negotiations with the ADB on February 9 to secure the second tranche of the loan. The bank has already given us a green signal to provide $300 million for construction of the six-lane road," said a senior official of the Economic Relations Division (ERD).
The $2.69-billion road project has faced prolonged delays and is now scheduled for completion in December 2026, though meeting the deadline appears increasingly unlikely.
Five years after its launch, the Dhaka-Sylhet Corridor project has achieved only about 60 per cent progress, leaving much of the 210-kilometre stretch in poor condition and causing severe hardship for millions of commuters, officials said.
According to the Roads and Highways Department (RHD), construction work under Package-1 of the Dhaka-Sylhet Highway was 62 per cent complete, while Package-2 reached 55 per cent completion as of October 2025.
Of the total project cost, the ADB is expected to provide US$1.78 billion in four tranches, while the remaining $911 million will come from the government's internal resources.
Land disputes and delays in utility relocation have significantly slowed implementation of the Tk 169.19 billion project, said project director AK Mohammad Fazlul Karim, adding that meeting the December 2026 deadline is now impossible.
The ERD official said the ADB is expected to finalise the second tranche of the $300 million loan under the South Asia Subregional Economic Cooperation (SASEC) Dhaka-Sylhet Corridor Road Investment Project at the February 9 meeting.
The funding aims to inject fresh momentum into the expansion of the strategically important national highway, which has faced persistent setbacks over the years, he added.
The loan is part of a larger US$1.78 billion multi-tranche financing facility (MFF) earlier approved by the ADB to upgrade the existing two-lane road into a modern six-lane corridor.
The corridor project includes construction of 66 bridges, 305 culverts and overpasses, six railway overbridges, 37 U-turns and 26 footbridges. It has been divided into 13 packages, each assigned to a contractor.
Describing the highway as a strategic "trade artery" for Bangladesh, a senior RHD official said the project has long been criticised for its slow progress. The new US$300 million funding is specifically intended to accelerate construction along the 210-kilometre stretch.
The project also aims to enhance road safety through the addition of dedicated lanes for slow-moving vehicles and improve accessibility by building footbridges, overpasses and footpaths designed to be inclusive for women, children and the elderly.
Once completed, the six-lane highway is expected to serve as a core component of the Northeast Bangladesh Economic Corridor. It will connect Chattogram port with India's northeastern states through the Akhaura, Sheola and Tamabil land ports, potentially turning the region into a subregional trade hub.
"This corridor is not just a road; it is a gateway for trade with Bhutan, Myanmar and India," said the senior RHD official.
Meanwhile, the Asian Infrastructure Investment Bank (AIIB) is financing the Sylhet-Tamabil six-lane road project to strengthen cross-border connectivity with India.
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