Construction runs into trouble as major components are incomplete


Munima Sultana | Published: October 16, 2014 00:00:00 | Updated: November 30, 2024 06:01:00



Major formalities for starting construction of the much-talked-about Dhaka Elevated Expressway (DEE) are yet to be completed although the work is supposed to kick off this month.
Road Transport and Bridges Minister Obaidul Quader announced recently that construction of the DEE, under a public-private-partnership project, would begin in October.
Sources said to start the construction some major components like necessary studies, detailed design, financial closure, land handover have to be completed.
Though the project's private partner, known as concessionaire, is supposed to submit financial closure for the 26-kilometre expressway construction works before going to the field, sources said, the project office was yet to receive the document.
Financial closure is an important component in a PPP project. In this case, it is meant to state concessionaire's sources of funding clearly to the implementing authority--Bangladesh Bridge Authority (BBA).  
Besides, the sources said, the concessionaire did not yet receive the land needed to be handed over to start the first-phase work from the Shahjalal International Airport to Mohakhali.
The detailed design has also not been received by the BBA.
Project officials, however, said the DEE project has crossed many barriers since its revised concessionaire agreement was signed with Italian-Thai Public Development Ltd in December 2013.
They are optimistic about starting construction "very soon" and, for this, the detailed design will also be received shortly.
They said the Thai concessionaire's major problem-arranging funds for the construction of the US $1.2 billion project--has been over after a Chinese firm came forward to provide financing and engineering support to the Thai company.
"We have handed over the land for the construction yard at Kawla. Besides, mobilisation work has already been started," said one official, preferring not to be named.
But, sources said the project office had not yet received any written information from the concessionaire regarding the signing of deal with China Railway Construction Corporation (CRCC).
The project office was also not aware of the details of the role of the CRCC in the construction of the DEE.
It is claimed that the BBA has already completed its first phase of land-acquisition process.
Sources said some private building structures, including seven- and five-storey buildings in Banani, are to be demolished to get down to the field-level work.
Since the DEE project was launched, it has faced many obstructions for not having any studies, including feasibility study, resettlement plan and environmental impact assessments.
In absence of the studies, the concessionaire faced hardship in getting funding as financial institutions did not find confidence in lending to the project.
In June last, the Thai concessionaire sought the BBA's permission to get the CRCC as its financier but did not inform details of the funding arrangements.
This correspondent tried to contact the Managing Director of the Italian-Thai local office over phone but could not reach as it was switched-off.
Meanwhile, the DEE PPP project cost and alignment have been changed due to delays in starting the construction.
The concessionaire had to conduct fresh traffic study to revise the route after the government cut two important ramps from the 26-km route. The cost of the Tk 87 billion project has gone up to Tk 89 billion.

smunima@yahoo.com

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