BD awaiting Chinese response to funds for Karnaphuli tunnel

Bangladesh's proposal seeking necessary funds for constructing the country's first tunnel under the Karnaphuli River is now awaiting the Chinese government's response, officials said.
They said the Economic Relations Division (ERD) already sent the proposal to the Chinese EXIM Bank after completing necessary procedures, mainly informing about the government's land acquisition (LA) procedures as per the bank's demands.
But, they said the ERD is yet to get any response in this regard.
"There were some queries from the EXIM Bank of China which we met taking necessary measures. Finally, the proposal was sent to the bank in mid- February for effectiveness of the Chinese loan," said an official.
Despite signing of the US$ 705 million loan agreement for the Karnaphuli tunnel project during the Chinese President's visit to Bangladesh in October last, complication in making the loan effective was created by delay in acquiring lands on both sides of the tunnel project.
Sources said as land is to be acquired in the western side of the river located in Chittagong divisional town area, approval from the Land Ministry is also needed before handing it over.
Official sources said the Bangladesh Bridge Authority (BBA), executing agency of the project, already held a meeting with all concerned including the central LA committee early this month to speed up the process of transferring the land to the project.
The BBA has to acquire 20 acres of land from the western side of the Chittagong divisional town and 38 acres on the other side of the tunnel.
A BBA official said, Tk 2.01 billion has already been handed over to the district administration to acquire the land situated on the other side of the tunnel as it  belongs to the district administration.
When a project needs land for acquisition, the project implementing agency usually hands over LA fund to district administration according to its estimation.
Chinese President Xi Jingpin and Prime Minister Sheikh Hasina jointly inaugurated the Karnaphuli tunnel project after signing of the US $ 705.8 million loan agreement.
The BBA signed a commercial contract with a Chinese company on June 30 last year.
However, BBA officials said, the Karnaphuli tunnel project's  necessary works like design and base camp office development work have already begun
The Road Transport and Bridges Ministry signed a deal with Chinese firm China Communication Construction Company (CCCC) Ltd in China on June 30, 2015 for building the tunnel.
Soon after the project was inaugurated, the BBA also signed contracts with six local and foreign firms on October 19 to work as consultants of the project.
The government took the initiative to construct the 3.5-km tunnel to reduce distance between Chittagong and Cox's Bazar by road easing port city-bound traffic from Dhaka.
It is also to establish 'One City, Two Towns' like China's Shanghai and is said to be a part of the China-proposed Silk Road.
The tunnel will have two tubes with two lanes each linking the two banks of the river.
The total project cost was estimated at Tk 85 billion of which the Chinese loan is $705.8 million (Tk 55.6 billion).
smunima@yahoo.com