Dhaka-Ashulia Expressway: Cost Rises by 10 Billion Due to Design Changes

The construction cost of the Dhaka-Ashulia Elevated Expressway is set to rise by 10,000 crore taka, bringing the total to nearly 28,000 crore taka due to design changes and other factors. The implementing agency, Bangladesh Bridge Authority (BBA), has prepared a proposal for the cost increase. The rise is mainly due to design modifications, the dollar’s appreciation, increased material costs, and new taxes and duties.

Approximately 6,500 crore taka will be added under duties and taxes, while construction-related expenses will increase by slightly over 3,000 crore taka. China’s Exim Bank, the project lender, has approved the additional cost proposal. However, the National Economic Council’s Executive Committee (ECNEC) approval is required. Questions remain on how the increased cost will be shared under the PPP model, as experts warn government funding could compromise the model.

A section of the expressway will pass over the Turag River. Initially classified as a third-class river, it has now been upgraded to second class, requiring higher bridge clearance and modifications to length and width. The distance between bridge piers will now be 90 metres, and the clearance from the river surface will be 12.2 metres.

The new design includes a new bridge and an intersection in Baipayl, Savar, and integrates the expressway with the Metro Rail at the airport’s new third terminal. The metro train will stop at the terminal before continuing, connecting with the expressway.

Dollar appreciation and construction material cost increases have also raised project costs. When the first DPP was drafted, one dollar cost 84 taka; now it requires at least 120 taka.

BBA Executive Director Mohammad Abdur Rouf said, “Several sectors have increased costs. About 6,500 crore taka will be covered by the government. Design changes and dollar rates have been considered. The proposal is final and will be sent to ECNEC for approval.”

Land acquisition, design complexities, utility relocation, and work at the airport area remain challenges. Land acquisition is nearly complete, design work is finished, and utility relocation will take another two to three months.

Project Director Md. Shafiqul Islam said, “The project area is large. Work continues wherever possible. Airport-side work will follow. Remaining complexities are mostly resolved.”

Six years after approval, the expressway is becoming visible. First piers were seen in 2023. The target completion date is 27 December 2027.

The elevated road will run from Savar EPZ to Hazrat Shahjalal International Airport, connecting to the existing Dhaka Elevated Expressway, enabling 44 km of uninterrupted travel from Savar to Kutubkhali. Including ramps, the total route will be 82 km.

The main road is 24 km, ramps 10.83 km, elevated path in Nabinagar 1.95 km, and 2.72 km of bridges. An additional 14.28 km of road and 18 km of drainage and ducts will be constructed.

Approximately 30 districts and four million people will benefit. Initial project cost was 17,554 crore taka, with Exim Bank lending 9,692 crore taka, the rest by the government. Loan funds are yet to be received.

Progress: overall 64.50%, physical construction 56.50%. Of 4,247 piers, 1,691 caps and 1,496 columns completed. Of 4,776 T-guarders, 4,536 done. Of 205 box-guarders, 424 deck slabs completed.

BUET transport expert Professor Shamsul Haque said, “The main issue is who will bear the additional cost. Cost escalation is not typical for PPP projects. Delays will affect project benefits. Integration with Metro Rail must also be considered.”

Khaborwala/TSN