Bangladesh and China have signed a concession contract to upgrade Dhaka Bypass under a public-private partnership arrangement.
A consortium of companies from Sichuan Road and Bridge Group of China, Shamim Enterprise Limited, and UDC Construction Limited signed the contract on behalf of their respective sides, said an Asian Development Bank release on Thursday.
Under the contract signed with Ministry of Roads and Bridges, a four-lane toll way and a two-lane service road will be added to Joydevpur–Debogram–Bhulta–Madanpur Road -N-105 section of the expressway. The 48kilometer project will provide a major arterial connection between the industrial zone northeast of Dhaka and national highway N1 connecting to the port city of Chattogram, as well as to N2, N3, and N4 highways leading to other major cities.
The consortium will design, build, finance, operate, and maintain the tolled expressway over a 25-year concession period, and will be able to charge tolls based on vehicle type. Bangladesh government will offer viability gap funding Tk 3.1 billion and a minimum revenue guarantee to the consortium to optimise the cost of financing.
The contract also provides the government with a share of revenues generated by the consortium over a certain threshold.