SASEC-2 project set for 2nd revision

The South Asia Subregional Economic Cooperation (SASEC) project-2, which involves widening the Elenga-Hatikamrul-Rangpur highway, is set to undergo revisions in both cost and deadline to accommodate several design changes.
The Roads and Highways Department (RHD) has already shared the proposed modifications to the Tk 186.79 billion project with the Road Transport and Highways Division (RTHD).
The proposed changes include the construction of three additional flyovers at Banani, Matidali and Sherpur. Besides, the completion of the Katakhali bridge, which was left unfinished under the western Bangladesh bridge improvement project, is also proposed to be incorporated within the scope of the SASEC project-2.

Originally initiated in 2016 with an initial cost of Tk 118.99 billion and a deadline set for 2021, the SASEC project-2 received significant financial support from the Asian Develop-ment Bank (ADB). However, due to delays in commencing construction work, the project underwent its first revision even before construction began in 2020.
As a result, the cost escalated to Tk 166.62 billion, and the deadline was extended to December 2024. Following a subsequent special revision, the project cost increased to Tk 186.79 billion.
And now the latest timeline extension is planned until December 2026, as officials said that nearly 65 per cent of the project has been completed.
While the proposed changes, if approved, will officially mark the project's second revision, taking into account the special revision that occurred after the initial one, this would actually be the third alteration made to the project.
The SASEC project-2 is part of the SASEC corridor, Asian Highway-2, BIMSTEC corridor-2, and SAARC corridor-4.
Official sources claimed the RHD has put forth these infrastructure construction proposals to ensure uninterrupted traffic flow on the 190.4 km highway, which serves as an extension of the Tangail-Elenga highway, where widening work has been carried out under the SASEC project-1.
However, the SASEC project has already introduced several new components since the beginning of the construction, they added. The additions include the Hatikamrul interchange in Sirajganj and automated traffic monitoring control system units at Pakulla in Tangail, Mohasthan in Bogra and Islampur in Rangpur.
A project insider, who preferred to remain anonymous, said, "Though a major portion of the 190.4-kilometre highway has already been completed, the widening work on a 13 km stretch from Jamuna bridge and the Hatikamrul interchange work is progressing slowly. As a result, the highway cannot be opened next year."
However, sources said that the RHD is yet to secure funds for the new components of the project. The RHD's funding proposal was rejected by the Asian Development Bank (ADB) as the Economic Relations Division (ERD) approached the project's financier first.
Last month, the Road Transport and Highways Division (RTHD) held a meeting with the Asian Infrastructure Investment Bank (AIIB) to secure funding of around US $150 million for the construction of three new flyovers and a bridge under a separate package within the project.
RTHD sources said that during the Project Steering Committee meeting in May, it was agreed to include the three flyovers under the project and proposed to find financiers for the additional works. The meeting also discussed the possibility of funding by the government, considering the importance of these new infrastructures.
"Although we are actively seeking funds from development partners, government funding can expedite the contractor selection process and construction timeline," said an official.
He, however, said that foreign funding for the additional components could help bring foreign currency during this crisis period.
When asked why the flyovers were designed at the later stage of the project, a project official said that it was necessary to convert the highway into an expressway following the directive of the Prime Minister.
He mentioned that the Elenga-Hatikamrul-Rangpur highway will be transformed into toll roads.
"Initially, local people were against the flyovers, but after witnessing the efficiency of the already constructed ones, they now understand their benefits and are advocating for their inclusion as well," the official told the FE on the condition of anonymity.
The SASEC project-2 received approval from the Executive Committee of the National Economic Council (ECNEC) on November 27, with a target completion date for 2021 and a budget of Tk 118.99 billion. The Asian Development Bank (ADB) signed a contract to provide US $1.2 billion in funding on July 12, 2017. The project has been implemented through 11 packages, of which 10 have been awarded. If approved, the three flyovers may be included under a new package.
Within the 190.4 km stretch of the road, the project has designed six flyovers, two railway overpasses, 32 bridges, 180 culverts, 11 foot-over bridges, 39 underpasses and a modified interchange at Hatikamrul. Some 326 hectares of land have been acquired for the project.
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