Chinese banks and investment institutions from Shandong province have expressed interest in financing the Dhaka Elevated Expressway project as the government seeks fresh funding to complete the remaining construction amid a prolonged suspension of existing loan disbursements.
The project, being developed under a public-private partnership (PPP), has faced financing pressure after loan releases from two Chinese financing banks were halted for more than two years due to legal disputes among shareholders of the project company, according to a government statement.
The disputes involving the transfer of shares in First Dhaka Elevated Expressway Co are currently under arbitration in Singapore. Despite the financing constraints, the project investor has continued construction using its own funds.
A high-level delegation from two banks and investment institutions in China’s Shandong province met Bridges Division Secretary and Bangladesh Bridge Authority Executive Director Mohammad Abdur Rouf on 29 July to discuss alternative financing options for the expressway.
Rouf welcomed the interest, saying the partially operational expressway had already started benefiting Dhaka residents by improving connectivity and easing pressure on existing roads. He said the government wanted to complete the remaining sections as quickly as possible.
Traffic on the operational portion of the expressway has exceeded expectations, Rouf said, adding that the project’s investment recovery prospects would improve once the full expressway becomes operational.
He also said the Prime Minister had directed the introduction of a unified Electronic Toll Collection (ETC) system for the expressway and across Bangladesh. The Bridges Division and Bangladesh Bridge Authority are working to implement the system, he added.
The meeting was attended by Additional Secretary and Bangladesh Bridge Authority Director (Administration) Altaf Hossain Sheikh, Chief Engineer A H M S Akhtar and members of the Chinese delegation.
Meanwhile, Bangladesh and Japan discussed expanding cooperation on strategic infrastructure projects under the Bangladesh-Japan Joint PPP Platform, with Japanese representatives showing interest in a proposed bridge over the Meghna River connecting Bhola and Lakshmipur.
The eighth meeting of the platform was held at Hotel InterContinental in Dhaka on 29 July, chaired by Principal Secretary to the Prime Minister A B M Abdus Sattar. Japan’s delegation was led by Special Adviser to the Japanese Prime Minister Uno Yoshimasa.
At the meeting, Rouf presented the proposed Meghna bridge project, which the Japanese delegation viewed as strategically important for southern regional connectivity, trade expansion and economic growth.
The meeting reaffirmed commitments from both countries to strengthen PPP cooperation, develop transport infrastructure, promote sustainable investment, create employment and improve Bangladesh’s long-term competitiveness.
