AIIB approves $75m for Rampura-Demra Expressway, but design not finalised yet

The Asian Infrastructure Investment Bank (AIIB) has approved a loan of $75 million for the $261 million Rampura-Amulia-Demra Expressway project to be implemented under public-private partnership, but its design is yet to be finalised due to alignment issues raised by Dhaka North City Corporation, Rajdhani Unnayan Kartripakkha (Raujk) and Bangladesh Television.

The AIIB and the private partner of the project are expected to sign the loan agreement on Tuesday. After that, the date of starting the work on the 13.5km four-lane road will be announced, according to the government's PPP office sources.

The PPP partners will invest about $68 million as equity investment and Infrastructure Development Company Limited (Idcol), Asian Infrastructure Investment Bank, Bank of China, and DBS Bank in Singapore will jointly provide a loan for the remaining amount.

Md Abul Bashar, the director general (Programming and Investment Promotion) of the PPP office, told The Business Standard, "The project is in the process of being officially launched as investors have been finalised. However, the final design work was not completed due to the objections of several government organisations regarding the alignment."

A Chinese consortium is implementing the project under a contract worth Tk2,094 crore. Apart from this, the Roads and Highways Department is implementing separate support schemes worth Tk1,209.60 crore to provide various assistance in land acquisition and utility shipment for this project.

This infrastructure will ensure smoother passenger travel and transportation of goods from the northern and eastern parts of the capital to the Sylhet and Chittagong divisions. Travel will be easier between Narayanganj and the southeastern parts of the country as well, according to the project documents.

However, Dhaka North, Raujk and Bangladesh Television have raised objections regarding the alignment of the expressway, saying its current placement will hamper traffic management of Hatirjheel and Rampura as well as obstruct the water flow of the Rampura canal, sources said. 

A committee headed by Local Government, Rural Development and Cooperatives Minister Tajul Islam is working to settle the dispute.

Apart from this, another committee has been formed with the participation of Dhaka North, Rajuk and the Road and Highways Department, according to Dhaka Transport Coordination Authority (DTCA) sources.

Sources said several pillars of the expressway are planned to be constructed along the banks of the Rampura Canal. The city corporation believes that the water flow of the canal may be obstructed.

Apart from this, the City Corporation as well as the Rajuk, in charge of the Hatirjheel project, have also objected to the proposal of a ramp/slip road for the expressway at Hatirjheel.

According to the two organisations, there is a U-loop in front of Rampura TV Station on the Pragati Sarani main road, which has been constructed under the Hatirjheel project. The construction of a ramp for the expressway may disrupt the traffic circulation plan of Hatirjheel. In addition, Bangladesh Television thinks that their buildings and facilities will be damaged due to this ramp.

In a meeting of the Support Project Implementation Committee held recently at the Roads and Highways Department, participants said despite several requests for non-objection from the Road Transport and Highways Division, there is a delay in getting assistance from the above-mentioned organisations. As a result, the design of the project cannot be finalised.

When asked, Md Abul Bashar, the director general (Programming and Investment Promotion) of the PPP office, said, "The objection of Bangladesh Television has already been addressed. We are working closely with the City Corporation to resolve the issue."

Abul Bashar expressed hope that the work of the project will start soon after solving all the problems.

At the beginning of last year, the government signed a contract of Tk2,094 crores with China Communications Construction Company Limited, a Chinese state-owned company, and its sister concern China Road and Bridge Corporation for the development of the road.

Under the total 25-year contract, the consortium will complete the construction work in four years and manage the road for another 21 years. At this time, the consortium will collect the toll and deposit it in the government fund.

The Asian Development Bank (ADB) conducted a feasibility study of the project. It is estimated that 32,000 vehicles will use the road every day when it opens in 2025. And in 2035, this number will rise to 55,000 and in 2050 to 85,000.

However, the investing parties will not depend on the vehicle toll collection. They will collect a total of Tk4,523 crore from the government in 42 instalments (Tk107.70 crore every six months). With this, the consortium will make a profit of Tk2,429 crore.

Sources at the Roads and Highways Department said Tk1051 crore has been allocated for the acquisition of 38.75 acres of land for the implementation of the project. Of that, Tk93 crore has been spent so far. Overall, the support project has made a 12.22% progress.