Dhaka-Ashulia Expressway: Project cost to rise by Tk 651cr

The cost for Dhaka-Ashulia Elevated Expressway project is going to rise Tk 651.72 crore, as the Chinese government has reduced its financing for the mega project.

The project, taken in 2017, is yet to formally start, and now, the deadline has been extended for four more years, to June 2026.

The government yesterday revised the budget and duration of the project for the first time.

The Executive Committee of the National Economic Council (Ecnec) in its meeting approved the first revision.

The original cost of the project was Tk 16,901.32 crore, and now, it is Tk 17,553.04 crore.

The government approved the project in October 2017 and the deadline for completion of the 24-km expressway was set for the end of June this year.

Sources said the project got delayed, as the Chinese authorities took a long time to approve over $1 billion loan for the project.

At a press briefing following the Ecnec meeting, Planning Commission Member Mamun Al Rashid said until 2017, the Chinese government had a policy of financing cent percent funds of some projects, and at that time, the government approved the DPP of this project.

"As we progressed to the negotiation stage after approval of the DPP, the Chinese government brought some changes in its policy and decided not to finance more than 85 percent of the project costs."

For that reason, the Chinese assistance has been reduced by Tk 1,257 crore, while the portion of government funding has been increased by Tk 1,909 crore.

Once built, the expressway will connect Hazrat Shahjalal International Airport with Abdullahpur, Ashulia, Baipail and Dhaka Export Processing Zone on Nabinagar-Chandra highway.