Dithering over DEE delays project contract time count

Munima Sultana | Published: January 18, 2016 00:00:00 | Updated: February 01, 2018 00:00:00

Bangladesh Bridge Authority (BBA) is yet to start counting 25-year concessional period of Dhaka Elevated Expressway (DEE) as a public-private partnership (PPP) undertaking although construction work began in August.
Due to the delay, official sources said, the government is losing days to get back hold of the expressway.
Road Transport and Bridges Minister Obaidul Quader formally inaugurated the construction of DEE, country's largest infrastructure- development project, on August 16.
Project-office sources said the Italian-Thai Development Public Corporation has been carrying out works in Kaura area since the inauguration.
They said full-fledged work on the project didn't yet start.
But officials could not say for sure when and how the counting of the concessional period would start.
According to a revised concessional agreement signed in December 2013, the concessionaire (contractor) of the project will enjoy 25 years of concessional period which includes 42 months for construction.
PPP Office said whatever the situation may be, both parties would abide by the agreement.
A senior project officer, however, said: "Construction period could not commence due to inability to meet condition precedence by both sides."
He said from the BBA side, entire land for the first phase of the construction work could not be handed over to the concessionaire.
Project office sources said although BBA acquired 71.23 acres of land needed to construct the first phase of the 7.45-kilometre expressway, 50 per cent of the land could not be handed over to the concessionaire.
There are still residential infrastructures existing on the corridor, which is delaying the procedure.
However, it is learnt that the Italian-Thai firm also could not submit financial closure, detailed design etc needed to start the project.
Project Director Kazi Mohammad Ferdous told the FE that they would soon begin counting the period as handover of land will be completed within January.
He said delay from the concessionaire's part will not be then considered.
The DEE has been planned to be constructed from Hazrat Shahjalal International Airport to Sonir Akhra of Dhaka-Chittagong highway, totaling its length 46.73 kms having five ramps to touch the city.
In the first phase, the expressway will be constructed from Uttara to Mohakhali.
The Italian-Thai company was awarded the work at Tk 89.90 billion where government will contribute Tk 24.13 billion as vulnerable gap funding (VGF) for land.
The concessional agreement was first signed on January 19, 2013 but revised in December 2013 due to change is alignment and design. However, the project has been facing several blows due to inability of the project's private partner to manage funds.
Allegations have it that for lack of necessary studies and plans, getting loan from financial agencies has been difficult. Recently, the company announced partnership with a Chinese company which will work as funding and construction partner of the Italian-Thai firm.
The expressway will connect the northern and southern parts of the capital, Dhaka, linking the Shahjalal International Airport with Jatrabari's Kutubkhali area via Mohakhali, Tejgaon, Maghbazar, and Kamalapur.
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