Govt set to sign deal with ADB for feasibility study, design

FHM Humayan Kabir The government is set to sign a deal with the ADB to get financial support and appoint foreign consultant for completing feasibility study and design of the Dhaka-Chittagong Expressway, the Ministry of Communications officials said Wednesday. The Manila-based lender Asian Development Bank (ADB) assured the government of providing US$12.5 million technical assistance to complete the feasibility study and detailed engineering design of the planned expressway on the country's busiest corridor, an official of the Ministry of Finance said. "We've decided to construct the Dhaka-Chittagong Expressway under public private partnership (PPP) arrangement. First we will conduct a feasibility study, and then will invite tenders from the private sector for its construction," an official of the Roads and Highways Department (RHD) told the FE. He said the existing Dhaka-Chittagong Highway is not being able to handle the gradually increasing traffic movement. So, construction of an expressway is urgent to ensure smooth communication and cut the travel time between the capital and the port-city. The RHD official said the appointed consultant will conduct the feasibility study, assess different route alignment options, make economic analysis, and establish financial model and structuring of PPP for the project. "The ADB has assured us of providing $12.5 million fund for these works. We are optimistic of receiving th oney soon to begin the feasibility study and design process of the expressway," he added. The 265-kilomtere Dhaka-Chittagong Highway acts as the country's economic lifeline, as thousands of buses, trucks, cars, tank-lorries and cargo-carriers ply on it everyday. The two-lane highway is now being upgraded to a four-lane one, considering the escalating load of vehicles. Local businesses have been demanding an expressway between the capital and the port-city for uninterrupted supply of various goods. They said at present using the busy highway is very time-consuming, as the vehicles often get stuck on it due to gridlock, delaying export of products to destinations across the globe. The expressway will reduce the transport time and increase the country's competitiveness in exporting different goods, especially the garment items, businessmen said. Another RHD official said according to a preliminary estimation construction of the proposed Dhaka-Chittagong Expressway will require nearly $3.0 billion investment. "As it is a substantial amount for the government, we will search for different options and evaluate their financial viability through conducting the feasibility study. The consultant will also assess how PPP could be feasible for construction of the road." "If the proposed expressway is adjudged as feasible, we will go for inviting local and international companies under PPP arrangement for its construction," he added.