The government is set to seek another Tk9,492.63 crore for the Dhaka-Ashulia Elevated Expressway, taking the project’s total estimated cost to Tk27,045.68 crore under a second revision.
It is also proposing to extend the completion deadline by four years to June 2030.
The revised Development Project Proposal (DPP) will be placed before Tuesday’s meeting of the Executive Committee of the National Economic Council (Ecnec), which will be chaired by Prime Minister and Ecnec Chairperson Tarique Rahman.
Officials have attributed the latest cost increase mainly to exchange-rate changes, design revisions, additional construction work, land acquisition, utility relocation, inflation and higher consultancy expenses.
Cost rises for second time
According to Planning Commission sources, the project was originally approved in 2017 at a cost of Tk16,901.32 crore. The cost rose to Tk17,553.04 crore under the first revision. The second revision now proposes raising the allocation to Tk27,045.68 crore, about 54 per cent higher than the first revised estimate.
Of the additional expenditure, government funding will increase by around Tk5,942 crore, while foreign loans will rise by about Tk3,550 crore.
The 24-kilometre elevated expressway will run from Kawla near Hazrat Shahjalal International Airport through Abdullahpur, Kamarpara, Dhaur, Ashulia, Zirabo, Baipail and Dhaka Export Processing Zone to Sreepur Bus Stand in Savar.
It will connect with the Dhaka Elevated Expressway. Once completed, the project is expected to ease congestion in the capital and improve road links between Chattogram Port and the country’s northern and north-western regions.
Exchange rate adds Tk3,736cr
The revised DPP identifies changes in the foreign exchange rate as the biggest reason for the cost escalation.
The first revision assumed an exchange rate of Tk86 per US dollar. The latest proposal uses the Bangladesh Bank rate of Tk121.75 per dollar, adding about Tk3,736 crore to the project cost.
The proposal also cites several major design changes.
New navigation requirements on the Turag River have made it necessary to increase the height and span of bridges at three locations. The sections crossing railway tracks also had to be redesigned because Bangladesh Railway plans to expand the Dhaka-Tongi route to six lines.
New interchange and airport ramps
A full trumpet interchange has been added at Baipail to allow vehicles from Nabinagar and Savar to enter the elevated expressway directly.
New entry and exit ramps will also be constructed at Kawla to provide direct access to the third terminal of Hazrat Shahjalal International Airport. These facilities were not included in the original project design.
Other reasons for the higher cost include additional land acquisition, relocation of electricity, gas, water and other utility lines, further design modifications and inflation-driven increases in construction expenses.
Under the revised proposal, the main construction cost will rise by around Tk4,292 crore, while an additional Tk1,371 crore has been allocated for ramp construction.
Land acquisition costs will increase by Tk748 crore, utility relocation by Tk515 crore and price adjustments by Tk810 crore.
Consultancy bill rises to Tk559cr
The project’s consultancy costs will also increase sharply because of the longer implementation period.
The original DPP provided for 84 months of consultancy services, including the defect liability period. As construction could not be completed within the scheduled timeframe, consultancy services will have to continue for the remaining work.
The second revised DPP therefore proposes an additional Tk257.89 crore for consultancy services, taking the total consultancy expenditure to Tk559 crore.
Physical progress at 63.5 per cent
Planning Commission data show that the project had achieved 63.5 per cent physical progress as of May this year.
More than Tk14,557 crore had been spent, although financial progress stands at 53.82 per cent when measured against the proposed revised cost.
The Planning Commission’s Physical Infrastructure Division has recommended approval of the second revision.
It said the expressway would create a direct link between Kawla and Sreepur Bus Stand in Savar through the Dhaka Elevated Expressway, helping establish faster, safer and more cost-effective road connections between the south-eastern, northern and north-western regions while reducing traffic congestion in the capital.
