The Bangladesh Bridge Authority (BBA) has placed a demand of over Tk 12 billion (1200 crore) for the Karnaphuli tunnel project in revised annual development programme (RADP) despite uncertainty about spending of the fund by June, sources said.
There was no allocation for the Tk 84.46 billion tunnel in the current fiscal year 2015-16.
Officials said the decision to seek the fund from the Finance Ministry was taken to speed up the implementation process of the over 3.4-kilometre tunnel project, first of its kind to connect two parts of the Chittagong port city.
They said the fund will be spent for land acquisition and paying 10 per cent of the project cost to the Chinese contractor as the BBA expects to complete loan procedure with the Chinese Exim Bank soon.
"The project will need land first for construction yard and then service area to keep construction materials and set up offices for the Chinese company if the loan signing is done," said an official.
As the decision was taken to give land price as per the market rate, he said the Bridge Division has placed Tk 2.5 billion for land acquisition in the RADP and over Tk 9.0 billion as mobilisation.
The government took the initiative to construct the first ever tunnel under the river Karnaphuli to connect two parts of the Chittagong aiming at establishing industrial belts and increasing economic activities centering the port city under a concept 'two towns in one city' like China and Hong Kong.
The tunnel is also to connect the country with BCIM corridor reducing the length between Chittagong and tourism town of Cox's Bazar by 30 km.
The Executive Committee of the National Economic Council (Ecnec) on November 24 approved it involving Tk 84.46.64 billion. Of the total cost the government will provide Tk 36.47 billion while the Chinese Exim Bank of Tk 47.99 billion as project assistance.
The BBA under the Ministry of Road Transport and Bridges signed a deal with the China Communication Construction Company Ltd (CCCC) in June last year in line with a memorandum of understanding signed during Prime Minister Sheikh Hasina's visit to China to construct the Karnaphuli tunnel under government-to-government arrangement in June 2014.
Bridge Division sources said a proposal of the Deputy Commissioner's (DC) office to acquire around 85 acres of land from the eastern side of the tunnel has already been sent for getting an estimate.
Another proposal of acquiring around 45 acres will be sent to the DC's office soon.
In the project, the BBA has kept Tk 4.5 billion for land acquisition purpose.
However, sources said the total budget for the land acquisition may increase manifold following the decision to acquire the land at the market price. Besides, there is no plan of resettlement of the land owners and no survey was done to facilitate release of the fund by June.
They also said loan agreement procedure with the Exim Bank is not yet completed.
Usually the government keeps budget for land acquisition as per the official record which is at least three times less the market price.
Sources said actual estimate for land acquisition will be made after survey by the DC's office.
Officials said the Bridge Division has sought khas land from the eastern side of the tunnel free of cost. They, however, admitted that 45 acres of land are needed to be acquired from the western side is mostly owned by private owners. According to the final design, length of the proposed tunnel will be 3.40 kilometres having 4.89 kilometre approach road and 800 metre bridges.
The CCCC and Ove Arup and Partners Hong Kong Limited jointly conducted the technical and financial feasibility study for constructing the tunnel.
   smunima@yahoo.com
BBA seeks Tk 12 billion for Karnaphuli tunnel project
Munima Sultana | Published: February 13, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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