Dhaka,  Sunday
30 June 2024

Rampura-Demra Expressway 

Work stalled over city corporation NOCs 

Sanjay Adhikari Rony, Dhaka

Published: 08:26, 28 June 2024

Work stalled over city corporation NOCs 

Photo : Collected

Almost four years have passed since approval, but the Rampura-Amulia-Demra Elevated Expressway work has not yet started. According to project sources, the project has stalled due to no-objection certificates (NOCs) from the two city corporations of Dhaka.

Stakeholders complain that the expressway work is not starting due to the non-cooperation of the two city corporations. The project director said that the required NOC regarding the place of the pillar and the ramp is not matching. Meanwhile, as more than two years have passed of the agreement, the two Chinese contractors want to adjust the dollar price. In this regard, Dhaka South City Corporation (DSCC) officials said although they have objections to some issues, a solution is possible through discussion.

The Demra-Rampura route is used as an alternative to Jatrabari road to enter the capital. Although there are fewer vehicles on this route during the day, the pressure of buses and trucks increases at night. For this, the government signed an agreement with two Chinese companies in 2022 to build the elevated expressway here. Although work was supposed to start in a year and a half, more than two years have passed. Due to the delay, the Chinese contractors want dollar price adjustment. A letter has also been sent to the Roads and Highways Division.

Rampura-Amulia-Demra Expressway Project Director Enamul Haque told The Daily Messenger that no-objection letters from the two city corporations are required for the location of the bend and ramp of the expressway. “That is being discussed. Because of this, the main work cannot be started.”

He also said, “There are certain obligations before starting the project work. One of them is the issue of land acquisition. The road of this project passes through the two city corporations of Dhaka. As a result, it is mandatory to take no-objection letters from them. But unfortunately, it is true that despite repeated calls, the letters have not been received yet.”

Enamul further said that since the price of the dollar has increased a lot, the price of all the things required for the project has increased. “In this situation, investors are urging to increase spending. The land acquisition work is almost at the final stage. The contractor has already signed agreements with four banks. The banks will release the project money after getting the no-objection letter. Then work can begin. Efforts are being made to start the work by December this year.”

Several officials of Dhaka North City Corporation (DNCC) and DSCC told The Daily Messenger on condition of anonymity that although they have objections to some aspects of the project, those can be resolved through discussion. “The process of giving NOCs to the project is under consideration.” DSCC Chief Executive Mizanur Rahman said that they have objections to some issues of the project. “However, those can be resolved through discussion.”

The Public Private Partnership (PPP)-based Hatirjheel-Rampura Bridge-Banasree-Amulia-Demra highway upgradation project has been approved for implementation from January 2020 to December 2024. To implement the project, a physical infrastructure of 13.5km length will be added to the road network of Bangladesh as the Rampura-Amulia-Demra-Chittagong Road Expressway.

Through this, the Dhaka-Chattogram Corridor, the main economic road of Bangladesh, will be connected to Dhaka through an alternative route, along with decongesting the city. If the project is implemented, the people of Tejgaon, Rampura, Hatirjheel, Karwan Bazar, Panthapath, Gulshan, and Badda areas of Dhaka city will be able to travel directly from Dhaka to Sylhet highway, Narayanganj and Chattogram highway through Demra and connect Shimrail junction. Besides, the project will directly enter Dhaka through Sultana Kamal Bridge.

It is to be noted that the Sultana Kamal Bridge has also been constructed considering the benefits of the Rampura-Demra-Amulia project and will facilitate the movement within Dhaka in a short period of time. Besides, the people of Narayanganj area will be able to enter Dhaka city in a short time without using the Mayor Mohammad Hanif flyover.

Three foreign companies submitted their final proposals in 2019 when the Roads and Highways Department invited international tenders to hire contractors for the project. After the tender evaluation process, the Chinese contractor CRBC-CCCC was jointly considered for the implementation of the project and the contract was signed on July 9, 2022.

According to the agreement, the foreign contractor CRBC-CCCC started their operations and brought the required manpower and equipment for the project implementation. However, even though the project implementation authorities have started the process of land acquisition, it has not been possible to hand over the land to the contractor until now due to various complications.

Meanwhile, due to the coronavirus pandemic, the Russia-Ukraine war, and the unusual increase in dollar price, the cost of implementing the project has increased manifold. Due to these complications, the project is currently at a standstill. The project is considered a priority of the country and on May 7, 2024, the prime minister urged all concerned to start the project work quickly.

The project will be implemented with the contractor's own/foreign funding and the investor is expected to get back the money in 42 instalments over 21 years after the completion of the project. After the completion of the project implementation, Bangladesh's revenue will increase through toll collection. As the project will be implemented on the PPP model, where the Chinese company will finance the project through international loans. 

Meanwhile, loan agreements have been signed with Asian Development Bank (ADB), Development Bank of Singapore (DBS), Bank of China, Asian Infrastructure Investment Bank (AAIB), and Infrastructure Development Company Limited (IDCOL) to implement the project. This loan will expire in December 2024. If the loan agreement is cancelled, the donor agencies will lose interest in financing the project again later or it will be time consuming to get a loan from any donor agency. It will disrupt the implementation of the project.

Moreover, in the current economic situation of the country, the direct government's own financing or borrowing from donor agencies will have a negative impact on the country's economy. In that case, if the project is not implemented, the critical road network, which connects Dhaka city with Sylhet and Chattogram roads for the fastest, congestion-free travel, will be disrupted. If this important project is not implemented, the country will also suffer economically.

The construction of this expressway is scheduled to be completed in 2026. Initially, the cost of the project was estimated at Tk 3,300 crore. So far, the government has spent Tk 360 crore on various works, including land acquisition.

Messenger/Fameema

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