Bhanga-Jashore-Benapole Highway: Funding snag holds off project
A problem over funding the expansion of the Bhanga-Jashore-Benapole highway project is raising concerns that the work of the much-needed project may take more time to kick off.
The Roads and Highways Department (RHD) has submitted a Development Project Proposal (DPP) to the Planning Commission, saying that it would require Tk 13,8341.11 crore for the project.
Out of the total, Tk 11,082.52 crore ($1,056 million) is expected to come from Indian lines of credit (LoC), as per the proposal.
But Indian authorities, so far, have only given "preliminary consent" to $100 million for the project, shows a planning ministry document.
Given the situation, the Planning Commission has called a meeting tomorrow (Monday). Top officials from the Economic Relations Division (ERD), which mobilises external resources for development projects; Road Transport and Highways Division; and the RHD are expected to join the meeting, sources said.
RHD's Chief Engineer Md Ishaque yesterday told this correspondent that the meeting has been scheduled but did not give details.
The country is failing to reap the maximum benefits of the enhanced connectivity after the opening of the Padma and Madhumati bridges last year as the road from Faridpur's Bhanga to Jashore's Benapole is still not ready for increased vehicular movement.
A plan for turning the two-lane Bhanga-Benapole road into a four-lane highway was chalked out long ago but it saw little progress, mainly due to the uncertainty over funding, officials said.
RHD has prepared two separate DPPs -- one for acquiring land and relocating utility lines while another for physical work for expanding the road.
The estimated cost for land acquisition and utility relocation is Tk 4,236.60 crore. The commission has already held meeting over the land acquisition project's DPP early this month and asked the RHD to recast it, sources said.
On the other hand, the RHD first submitted a DPP for turning the 129.17km highway into a four-lane one with service roads on both sides at a cost of Tk 11,050.04 crore. But it has to recast the DPP, after the RHD rate schedule-2022 came into force, taking the estimated cost of the project to Tk 13,841.11 crore.
So, the total cost of the road's expansion would be Tk 18,077.71 crore -- making it the costliest RHD project.
WHY SO IMPORTANT?
The opening of the long-cherished Padma Bridge in June last year created a direct link between the capital and the country's southwestern region, cutting the travel time significantly. The bridge is also a key component of the Asian Highway-1, which is expected to boost the economic growth of Asia and improve the country's standing in the continent.
The AH-1, connecting Meghalaya with West Bengal of India via Tamabil-Sylhet-Dhaka-Narail-Jashore, had two missing links: one is the Padma Bridge and the other the Kalna bridge, formally named Madhumoti Bridge, in Narail, which was open to traffic last October.
But the road from Bhanga to Benapole via Jashore is a two-lane highway, which is failing to meet the growing demands, as a major shift in the movement of vehicles, including those for cross-border trade, has been taking place since the opening of the two bridges.
Bangladesh in October 2017 signed a $4.5 billion LoC agreement with India, which is the third such deal between the two countries. The Bhanga-Jashore-Benapole road expansion is among the projects to be financed from the third LoC, RHD officials said.
According to the Planning Commission's document, although the pre-DPP of the project mentioned "LoC and other sources" as possible sources for foreign loan, the DPP mentioned the LoC as the only source.
"The DPP didn't mentioned any information about how much loan the LoC authorities will provide for the project and in this given situation, the meeting can discuss how to ensure foreign funding," it added.
A top RHD official said they usually send a DPP, which is supposed to be implemented with foreign loan, to the Planning Commission upon getting confirmation about funding from the particular agency, although loan agreements are often signed after the approval of a project by the Ecnec.
"But this project [Bhanga-Benapole] is different as there is a bi-lateral commitment between the two countries," he said, wishing not to be named.
He added, "The meeting is actually called to know about the latest finance-related issues from the ERD and discuss the next steps regarding the project."
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