Dhaka Elevated Expressway Faces Delays Amid Funding Issues

Construction on the Dhaka Elevated Expressway project is encountering significant delays, primarily due to financial complications within the project's investing institutions. Road Transport and Bridges Minister Shaikh Rabiul Alam informed parliament that loan installments from the China Exim Bank and the Industrial & Commercial Bank of China (ICBC) have been suspended.

These suspensions stem from difficulties related to the transfer of shares among the project's shareholders, according to the minister. The public-private partnership project spans from Hazrat Shahjalal International Airport to Kutubkhali on the Dhaka-Chittagong Highway, covering a total length of 46.73 km including ramps. It is divided into three phases, with the main carriageway being 19.73 km long.

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Due to complications related to the transfer of shares among the shareholders of the project's investment institutions, the loan instalments from the two Chinese banks, namely China Exim Bank and Industrial & Commercial Bank of China (ICBC), have been suspended.

While the section from Kawla to the FDC crossing has been opened, construction continues on other parts, including ramps and interchanges. However, pending works on key stretches remain. The minister stated that the investing institutions are currently using their own financing to continue construction. Work on one link had also been suspended for approximately a year due to an environmental movement.

Minister Alam indicated that if the financial issues are resolved, the entire project could be fully operational by December 2028. The current delays highlight the challenges in securing and maintaining consistent funding for large-scale infrastructure projects, particularly those involving international finance and complex ownership structures.

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If the financial difficulties of the investing institution are resolved, the project will be fully operational by December 2028.