Industrial and Commercial Bank of China (ICBC) is seriously considering new loan disbursement and refinancing for Dhaka Elevated Expressway after overcoming existing legal complexities. The bank is also considering providing loans in Chinese Renminbi (RMB) instead of US dollars.
The consideration to shift from the US dollar to RMB comes amid discussions on dollar exchange rate fluctuations, taka depreciation, and the differences between current conditions and the terms of previous loan agreements.
The developments came during a meeting to address the project’s existing financial deficit and restart loan disbursement, held between Bridges Division Secretary and Bangladesh Bridge Authority Executive Director Mohammad Abdur Rouf and an ICBC delegation on Thursday, a press release said.
The meeting reviewed the project’s financial and construction progress. Loan disbursement had previously stalled due to a shareholder dispute among the project’s investors. Progress towards resolving the dispute was made following a ruling by the Singapore International Arbitration Centre (SIAC).
Regarding future expansion, the Secretary said the expressway will be connected with the Dhaka-Ashulia Expressway. Additionally, feasibility studies will be conducted for four new connections, with potential links to the Dhaka-Mawa Expressway, Purbachal Expressway and the Rampura-Banshree-Aftabnagar areas discussed. Implementing these connections is expected to increase vehicle usage, toll revenue and the project’s long-term financial sustainability.
ICBC Global Finance Department Infrastructure and Manufacturing Sector Representative Charley Zhao attended the programme. Bangladesh Bridge Authority Director (Administration) and Project Monitoring Team Head Altaf Hossain Sheikh, Chief Engineer Md Abul Hossain, Project Director Md Golam Mortuza, Supervising Engineer Mahmudur Rahman and representatives from the project implementing firm First Dhaka Elevated Expressway Company Limited were also present.
