Govt prefers Chinese firm for $1.75b project
JAGARAN CHAKMA
The government is learnt to have initiated a move to award the contract for constructing the much-hyped Dhaka Ashulia Expressway Project to a Chinese company backtracking from its earlier decision to implement the project under public private partnership (PPP).
The initiative came in response to a proposal from the state-owned China National Machinery Import and Export Corporation (CMC), sources said.
China is interested in providing a loan of USD 1.75 billion, to build the 38-km-long expressway, at 2 per cent interest to implement the project.
It may be mentioned that on November 6, 2013, Prime Minister Sheikh Hasina said in parliament that the construction work for the elevated expressway would start in due time under PPP and that the expressway would run from Shahjalal International Airport to Chandra of Gazipur, along the Ashulia Road.
Hasina also said the pre-feasibility study for the Tk 16,250-crore project had already been completed. Also,
seven firms had submitted their bids following invitation of Expression of Interest, she added.
On July 19, the Chinese Embassy in Dhaka sent a letter to the Economic Relations Division (ERD) to expedite the construction of the project.
The economic and commercial counsellor of the Chinese Embassy, Wang Zijian, wrote that the project was
going through the final approval process with the EXIM Bank of China and authorities concerned of the Chinese government.
The letter recommended that the governments project-implementing agency should start the technical and commercial contract negotiations as soon as possible.
Bridges Division Secretary Khandker Anwarul Islam said the government
is yet to finalise its decision to award
the contract to the Chinese company. He also said that the Chinese company had proposed that the project should be implemented under the turn-key method. He further said the final decision will be taken as per the ERDs suggestion in this regard.
ERD officials, however, hinted that Bridges Division is in favour of awarding the contract to CMC. On January 22, the Bridges Division inked a memorandum of understanding (MoU) with CMC to construct the elevated expressway.
The government wants China to build the mega project that would enable quick entry and exit of vehicles to and from Dhaka and facilitate transit trade with India, Nepal and Bhutan.
ERD officials said China had proposed to make 15 per cent advance repayment as security of the total cost of the project. However, the ERD has refused the proposal, they added.
The Bangladesh University of Engineering and Technology (BUET) and the BBA have already conducted a feasibility study for the expressway project, which shows that 11,543 vehicles will ply on the expressway in 2016. The number of vehicles will rise to 55,803 in 2020 and 120,978 in 2030.
Bridges Division officials said this expressway will facilitate movement of transit vehicles between Bangladesh and Nepal, Bhutan and India, and smooth movement of goods-laden vehicles from Chittagong Port to Dhaka EPZ and the adjoining areas. It will help ease traffic congestion and allow trucks to move across the capital throughout the day.
The Dhaka-Ashulia Elevated Expressway Project was approved in June 2011 at a meeting of the Cabinet Committee on Economic Affairs, with an estimated cost of nearly USD 2 billion. The government had initially decided to implement the project under public-private partnership, but now the project will be under a government-to-government agreement. Sources said a notice was issued inviting tenders from investors by July 31, 2011 as per the directive of the Cabinet Committee on Economic Affairs. But the government did not find any investors.
