ECNEC Likely to Consider Tk 9,493cr Cost Hike for Dhaka-Ashulia Expressway

The Executive Committee of the National Economic Council (ECNEC) is likely to consider a proposal on Wednesday to raise the cost of the China-funded Dhaka-Ashulia Elevated Expressway by nearly 54 percent, increasing the total project cost to Tk 27,046 crore from the current Tk 17,553 crore.

Prime Minister Tarique Rahman is scheduled to preside over the ECNEC meeting. According to the Planning Division, 19 development projects have been placed on the agenda for approval. The projects cover riverbank protection on the Meghna River, Greater Dinajpur development, water resources management, universal sanitation, disaster management, the Dhaka�"Chattogram Elevated Expressway, Jamalganj coal mine development and power distribution improvement in Sylhet, alongside several other initiatives in the agriculture, infrastructure, energy and power sectors.

According to the second revised Development Project Proposal (DPP), the project cost is proposed to be increased by Tk 9,493 crore, mainly due to the depreciation of the Bangladeshi taka against the US dollar, additional engineering works, land acquisition, utility relocation, and higher tax and VAT expenditures.

The Bangladesh Bridge Authority (BBA) originally approved the 24-kilometre expressway project in 2017 with an estimated cost of Tk 16,901 crore, including Tk 10,949 crore in Chinese financing. The project was initially scheduled for completion by June 2022.

However, following the first revision in June 2022, the project cost was increased by Tk 652 crore to Tk 17,553 crore, while Chinese financing was revised downward to Tk 9,692 crore.

Under the latest proposal, the government's contribution will rise by about 76 percent to Tk 13,803 crore, while China's financing is expected to increase by nearly 37 percent to Tk 13,242 crore.

The revised DPP also proposes extending the implementation period until June 2030, including a two-year defect liability period. The extension has been sought due to additional land acquisition, utility relocation, design revisions and inclusion of new infrastructure components.

Project implementation suffered significant delays from the outset. Officials said it took nearly four years to finalize the loan agreement with the Export-Import Bank of China (China Exim Bank), delaying the start of construction until October 2022.

As of May 2026, the project's physical progress reached 63.5 percent, while financial progress stood at Tk 14,557 crore�"equivalent to 83 percent of the first revised project cost and 53.82 percent of the newly proposed budget.

The revised proposal shows that the depreciation of the taka alone has added Tk 3,736 crore to the project cost, accounting for nearly 39 percent of the total increase. The exchange rate assumption has been revised from Tk 86 per US dollar in the first revised DPP to Tk 121.75.

Another Tk 1,769 crore has been added for additional engineering works arising from approved design changes.

One of the major design revisions involves the expressway crossing three branches of the Turag River in the Tongi and Savar areas. In 2023, the Bangladesh Inland Water Transport Authority (BIWTA) upgraded the navigation class of the waterways, requiring greater vertical clearance for vessels. As a result, the bridge height, central control building and toll plaza platforms have all been raised.

The project design has also been modified to accommodate a future rail transit corridor along the Dhaka-Tongi section by increasing the height of piers and the length of bridge spans.

To ease traffic congestion around Baipail and improve connectivity with the Savar-Nabinagar road, a new trumpet interchange has been incorporated into the project. In addition, new entry and exit ramps have been planned at Kawla to provide direct access to Hazrat Shahjalal International Airport's Third Terminal for vehicles travelling from the northern and northwestern districts.

Officials said these government-approved design modifications have increased both construction and future operational costs.

Besides engineering changes, another Tk 3,988 crore has been added due to increased costs of land acquisition, utility relocation, taxes and VAT.

The 24-km Dhaka-Ashulia Elevated Expressway will begin at Kawla near Hazrat Shahjalal International Airport and pass through Abdullahpur, Kamarpara, Dhaur, Ashulia, Zirabo and Baipail before ending at Shripur Bus Stand in Savar, bypassing the Dhaka Export Processing Zone (DEPZ).

Once completed, the expressway will be connected with the Dhaka Elevated Expressway, creating a seamless corridor that is expected to improve connectivity between Chattogram Port, the southeastern region and the northern and northwestern parts of Bangladesh while allowing vehicles to avoid Dhaka's congested road network.