The government failure to hand over land for 47km Dhaka Elevated Expressway (DEE) and contractor’s failure to mobilize funds to build the mega project has virtually stalled its progress. We must say the government should show competent leadership to implement the project and many more such projects. Failure to timely implement the project will only add to the overall cost of the project to become a liability at the end. The authorities must be cautious about it.
Media report said only seven percent work of the project has been completed in the last seven years to raise question as to why the authorities are failing to deliver. Meanwhile it was inaugurated twice to show government claim that big projects are underway but the government so far failed to issue the work order. The private investor of the DEE, has also repeatedly failed to mobilize funds for the public-private partnership (PPP) project, said a report in a national daily.
The seven percent progress includes mobilization for the construction yard at Kawla on Airport Road, building of some piers and other work. According to the agreement, among other vital preparatory works, the government was required to hand over the land for the first segment of expressway route from the airport to Banani in six months. Italthai was required to get the fund and submit the financial estimate for the work order. Both have failed to fulfil their part of the job.
The difficulties to hand over land still continue due to complications in land acquisition, resettlement and relocation of utility network. Meanwhile Ital-Thai Ltd is facing difficulties in getting fund; which it intended to get from International Finance Corporation of the World Bank. But it requires Environmental and Social Impact Assessment report for approving the loans. Italthai failed to get the assessment done in time.
There was a provision for sovereign guarantee for the loan. But the government has unilaterally altered two vital ramps – one on Manik Mia Avenue and the other at Palashi, in addition to changes to ramp layouts at Tejgaon and Kakoli crossing to raise question on the revenue estimates. Ultimately the company is not getting the fund.
However, the main problem now seems to be government failure to issue the work order but it is undecided on the ground if the company can’t mobilize fund, there is no point offering the work order. In our view both sides should make serious exercise to go along or break apart. The other option is to find out another contractor capable to mobilize finance from international market. We are concerned any delay will only add to the project cost that must be avoided any way.
Media report said only seven percent work of the project has been completed in the last seven years to raise question as to why the authorities are failing to deliver. Meanwhile it was inaugurated twice to show government claim that big projects are underway but the government so far failed to issue the work order. The private investor of the DEE, has also repeatedly failed to mobilize funds for the public-private partnership (PPP) project, said a report in a national daily.
The seven percent progress includes mobilization for the construction yard at Kawla on Airport Road, building of some piers and other work. According to the agreement, among other vital preparatory works, the government was required to hand over the land for the first segment of expressway route from the airport to Banani in six months. Italthai was required to get the fund and submit the financial estimate for the work order. Both have failed to fulfil their part of the job.
The difficulties to hand over land still continue due to complications in land acquisition, resettlement and relocation of utility network. Meanwhile Ital-Thai Ltd is facing difficulties in getting fund; which it intended to get from International Finance Corporation of the World Bank. But it requires Environmental and Social Impact Assessment report for approving the loans. Italthai failed to get the assessment done in time.
There was a provision for sovereign guarantee for the loan. But the government has unilaterally altered two vital ramps – one on Manik Mia Avenue and the other at Palashi, in addition to changes to ramp layouts at Tejgaon and Kakoli crossing to raise question on the revenue estimates. Ultimately the company is not getting the fund.
However, the main problem now seems to be government failure to issue the work order but it is undecided on the ground if the company can’t mobilize fund, there is no point offering the work order. In our view both sides should make serious exercise to go along or break apart. The other option is to find out another contractor capable to mobilize finance from international market. We are concerned any delay will only add to the project cost that must be avoided any way.
