DHAKA: The deal will be done by the December deadline and the government expects the first phase of the nearly US$ 2 billion Dhaka Elevated Expressway (DEE) project to be completed by December 2013, the Communications Minister said Thursday, though the finance minister appeared a bit doubtful.
Syed Abul Hossain said the government wants to complete the signing of the deal with one of the companies in the queue for the contract by this coming December to implement the Public-Private Partnership (PPP) scheme.
“As the government has short-listed four investment companies, out of nine, now we are on the way of considering an agreement with the successful one of the firms by December this year,” he told the opening session of a workshop on the mega-scheme in the country’s communications sector that is expected to resolve Dhaka’s traffic doldrums.
The workshop on ‘Dhaka Elevated Expressway: Public-Private Partnership’ was organized at Bangabandhu International Conference Centre by Bangladesh Bridges Authority.
Finance Minister AMA Muhith, who attended the workshop as chief guest, however, appeared skeptical about the timing for the signing of the project deal as he termed it ‘too ambitious’.
Muhith said the signing of the agreement might not be possible by December this year. “It will take a longer time.”
The custodian of the exchequer observed that there will be needed a huge amount of investment covering flyovers, roads and railways. “…there is a need for big facilities and they must be complementary and not competitive.”
The elevated expressway is proposed from Uttara to Jatrabari via Kuril-Rampura and Banani-Mohakhali routes. One route would be selected, finally.
Principal Secretary M Abdul Karim and former adviser of caretaker government and urban expert Dr. Jamilur Reza Chowdhury were special guests at the programme, chaired by acting Secretary of the Bridges Division Mosharraf Hossain Bhuiyan. A number of experts from various organizations were also present.
Prof Dr. Shamsul Haque of BUET made a presentation on `Strategic Transport Plan’ while project manager of AECOM Sylvia Tesche gave an outline of the project.
Muhith also said, “Railway could be incorporated in the expressway but there is a need to be a bit flexible about the time factor.”
In reply to a question, the Finance Minister said, “Financing is not the concern for the government rather for those who are coming up with the investment proposals.”
In this context also, he had a note of caution about the chunk of money to be invested and realized from the commuters. “The Investors would have to keep in mind that it is a poor country and the cost would be realized from the members of different sections of society,” he said.
Asked about the comment of the Finance Minister on the deadline for the deal signing, Communications Minister Abul Hossain again affirmed his opinion, saying, “The Finance Minister said this from his own experience, but I said that from the point of my eagerness.”
He went on: “When I took the charge of this ministry (communications), I took various ‘ambitious’ projects.”
Abul Hossain said the project aims at improving the road connectivity and linking the northern part of Dhaka city with the central, southern and southeastern parts.
Dr Jamilur Reza Chowdhury stressed the need for an urgent detailed traffic model for the capital city, where commuting virtually came to the point of crumbling.
“There are a number of conflicts that need to be resolved. Convergence of vehicles in Jatrabari on completion of the Padma Bridge by 2013 will be a challenge,” he opined.
The Cabinet Committee on Economic Affairs approved the format of pre-qualification of investors on October 20, 2009 while Bangladesh Bridges Authority invited bids from international investors on November 19 the same year.
Nine pre-qualification proposals were received on March 4, 2010 of which four international investment companies have been short-listed for the PPP project. The companies are Ital-Thai Development Company Ltd (Italy-Thailand), Gammon-Bougyes JV (India-France), Sikder-KCC JV (Bangladesh-South Korea) and China Railway International Ltd (China).
International consultants AECOM Australia Limited has been appointed to carry out financial and economic feasibility study on the proposed project, and they have identified four alternate options of route alignments, of which one option will be finalized.
An expert committee, headed by Prof. Dr. Jamilur Reza Chowdhury, has been formed to review the consultants’ recommendations.
BDST: 1540 HRS. June 17, 2010
AKR/LY/MUA
