Even though 14 years have already passed, the construction work of Dhaka Elevated Expressway has not yet been completed due mainly to legal and loan related complexities.
However, the construction work on the expressway is expected to resume soon as legal and loan related issues have been resolved recently, project sources said.
The project undertaken by the previous government in 2009 was scheduled to end by June 2025, stakeholders now say that it will take three more years.
The government took up the mega project aimed at reducing traffic congestion in Dhaka city. Although a portion of the expressway has opened to traffic, the project has remained stalled for the past eight months due to legal and loan complexities. On September 2 in 2022, then Prime Minister Sheikh Hasina inaugurated the Airport-Tejgaon section, but since then, the project has been facing numerous challenges.
The Thailand-based Thai Development Company, the implementing agency of the project, has become embroiled in loan-related lawsuits against Chinese bank. Separate cases were filed with the High Court of Bangladesh and the International Arbitration Court in Singapore.
Uncertainty looms large over the project after the political changeover in August. However, recent rulings in both courts have provided a glimmer of hope for resuming the work.
In 2011, the Italian-Thai Development Company was awarded the contract. After facing financial difficulties for eight years, the company sold a 49 percent share to two Chinese firms--Sinohydro Corporation and Sanyong International--in exchange for the loan from a Chinese bank. As a result, the project gained momentum.
Sources say that while a portion of the project was launched, the financial situation of Italy-Thai has not improved. According to one of the conditions of the share sale agreement, if Italy-Thai company fails to repay the loan installments taken from the Chinese bank, ownership of the project must be handed over to the two Chinese companies. This means that Italy-Thai was obligated to proportionally transfer shares to Sinohydro and Sanyong if it defaulted on the loan.
Sources have revealed that Ital-Thai approached the courts in Bangladesh and Singapore to prevent the transfer of its remaining 51 percent share and sought a resolution. Recently, the High Court of Bangladesh dismissed the application, and on October 21, the International Arbitration Court in Singapore issued a similar ruling.
It has been reported that this ruling has resolved the complexities surrounding the share transfer and other issues, paving the way for the remaining construction work to restart after an eight-month hiatus.
Project Director AHM Shakhawat Akhtar has expressed optimism that construction on the Tejgaon-Kutubkhali section will commence as early as November.
Shakhawat Akhtar told the Bangladesh Post, "The Singapore court has lifted the ban on share transfers. There are now no obstacles to transferring Italy's shares to the two Chinese companies."
An official involved with the project, who requested anonymity, told Bangladesh Post that 73.5 percent of the project work has been completed, including time-consuming land acquisition and foundational construction. He expressed the hope that if everything goes smoothly, the remaining work could be completed quickly.
However, he cautioned that it is too early to predict an exact timeframe, indicating that perhaps by next year, after all tests and checks, it could extend to 2027.
Furthermore, the project is 27 percent government-owned, and delays in construction are causing losses to the government. Operated under a public-private partnership, this project is relevant to both governmental and public interests.
Due to the prolonged delay in construction, Exim Bank had also halted loan disbursement, but with the court ruling favouring the Chinese firms, they will be able to repay interest, allowing banks to resume lending.
So far, construction work has been halted in areas like Moghbazar-Malibagh, Khilgaon, Hatirjheel, Panthakunja, and Kamalapur. Although more than 20,000 vehicles per day were the original goal for the Dhaka Elevated Expressway, the actual number has more than doubled. This project is poised to play a crucial role in resolving traffic congestion in the capital, yet if construction is not completed, it may become a burden.
Urban planner Adil Muhammad Khan expressed concern, stating, "This project has destroyed the Panthakunja Park at Panthapath in the capital and negatively affected the environment of Hatirjheel. If the project is not completed, the benefits of reducing traffic congestion will not materialise, and the environment will also suffer."
Project Director Shakhawat Akhtar remains optimistic, stating, "We will be able to complete the work within the stipulated time."
According to the Tender Data Sheet (TDS) of the project, the main construction will start from Kawla and end at Kutubkhali, passing through Kuril, Banani, Mohakhali, Tejgaon, Moghbazar, Kamalapur, Sayedabad, and Jatrabari.
The total cost of the project is estimated at Tk 8,940 crore. The construction work commenced formally on January 1, 2020. The section from Kawla to Tejgaon opened to traffic on September 2 of the previous year, and later on March 20, the Karwan Bazar Expressway section also opened to traffic.
Engineers and urban planners associated with the project argue that the Dhaka Elevated Expressway represents a milestone for urban transportation in Bangladesh. Despite facing numerous challenges since its inception, recent developments suggest that the project is finally on track for full implementation. It is poised to serve as a vital infrastructure project to address traffic woes in the capital.
