Dhaka-Ashulia Expressway Cost Rises To Tk27,046cr

The government has approved the second revision of the Dhaka-Ashulia Elevated Expressway project, raising its estimated cost by about 54 per cent to Tk27,045.68 crore and extending the completion deadline by four years to June 2030.

The Executive Committee of the National Economic Council (ECNEC) approved the revised proposal at its meeting on Wednesday at the Bangladesh Secretariat.

Under the revised Development Project Proposal (DPP), the project cost has increased from Tk17,553.04 crore under the first revision to Tk27,045.68 crore, an increase of about Tk9,492.64 crore.

The project was originally approved in October 2017 with an estimated cost of Tk16,901.32 crore.

The latest revision raises the government's contribution by Tk5,942 crore, or 75.59 per cent, while project loan financing has increased by Tk3,550 crore, or 36.63 per cent.

Initially scheduled for completion by June 2022, the project's deadline was first extended to June 2026. ECNEC has now approved a further extension to 30 June 2030, reflecting the project's actual progress and additional engineering requirements.

Design changes and higher costs

Officials from the Planning Commission and the Bangladesh Bridge Authority said the cost escalation was driven by major design modifications, additional construction components, exchange rate fluctuations, land acquisition and utility relocation.

A significant factor was the depreciation of the Bangladeshi taka against the US dollar. The exchange rate used in the original project estimate was Tk80.57 per dollar, later revised to Tk86, and has now been increased to Tk121.75.

The higher exchange rate alone added Tk3,736.61 crore, accounting for nearly 39.4 per cent of the total cost increase.

Higher contractor payments also resulted in additional VAT and income tax liabilities amounting to Tk1,000.36 crore, while increased customs duties on imported construction materials added Tk390.73 crore.

Major engineering modifications

The revised project incorporates several engineering changes aimed at improving traffic flow, connectivity and river navigation.

Following directives from the Bangladesh Inland Water Transport Authority (BIWTA), the bridge's vertical clearance over three branches of the Turag River has been increased from 7.62 metres to at least 12.2 metres. Span lengths have also been extended to as much as 90 metres, adding Tk597.66 crore to the project cost.

The planned expansion of the Dhaka-Tongi railway corridor from two tracks to four, with provisions for six tracks in the future, required bridge redesigns with spans of up to 125 metres, increasing costs by Tk153.20 crore.

A new trumpet interchange at Bypail has been included to ease congestion at a cost of Tk610.07 crore.

Additional works include raising nearby structures to 18 metres, constructing a new ramp linking the expressway with the third terminal of Hazrat Shahjalal International Airport, expanding toll plaza facilities and acquiring additional land.

Land acquisition requirements have increased from 10.89 hectares to 14.5 hectares, adding Tk747.55 crore to the project cost.

The revised proposal also allocates Tk515 crore for relocating electricity, gas and water utility lines, along with Tk1 crore for land rental costs.

Project to improve connectivity

The 24-kilometre elevated expressway will connect Kawla, near Hazrat Shahjalal International Airport, with Ashulia and Sreepur in Savar. The Bangladesh Bridge Authority is implementing the project.

The expressway is intended to ease chronic traffic congestion in Dhaka, Savar and Ashulia while improving transport links for industrial zones and export-oriented businesses.

Officials said the project will facilitate faster movement of commuters, raw materials and export goods, particularly garments transported between industrial areas and Chattogram Port.

Project timeline

The project originated from a pre-feasibility study conducted in 2015 for the Abdullahpur-Bypail corridor.

The government signed a memorandum of understanding with China National Machinery Import and Export Corporation (CMC) in January 2015 under a government-to-government arrangement.

ECNEC approved the project in October 2017, followed by the signing of the commercial contract in November the same year.

A loan agreement with China Exim Bank was signed in October 2021 and became effective in May 2022.

Construction officially began on 28 October 2022 after financing arrangements were completed and pandemic-related disruptions eased.

Officials said the second revision became necessary because of extensive design changes, additional works, exchange rate fluctuations, revised financing arrangements, and increased land acquisition and utility relocation requirements.