Govt seeks foreign funds for Tk71,850cr Dhaka-Ctg expressway project
Of the total, Tk55,080 crore is proposed to come from foreign loans, while the remaining Tk16,770 crore will be financed from government funds.
Highlights:
- Govt moves to secure foreign funding for Dhaka-Chattogram six-lane expressway
- Tk71,850 crore project proposed to upgrade country's busiest highway
- Foreign loans to finance Tk55,080 crore of project cost
- Expressway targeted for completion by 2032
- Access-controlled six-lane highway to include service lanes on both sides
- All intersections to be replaced with flyovers, underpasses and interchanges
The government has begun the process of securing foreign financing to upgrade the Dhaka-Chattogram national highway – the country's economic lifeline – into a six-lane access-controlled expressway with service lanes on both sides.
According to the Preliminary Development Project Proposal submitted to the Planning Commission, the estimated cost of upgrading the 232.76-kilometre highway is Tk71,850 crore. Of the total, Tk55,080 crore is proposed to come from foreign loans, while the remaining Tk16,770 crore will be financed from government funds.
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Officials from the Roads and Highways Department (RHD) said the project is targeted for implementation between January 2027 and December 2032, subject to the availability of foreign financing.
The proposal states that the initiative has been undertaken to cope with growing traffic volumes and align with the government's economic development strategy. The RHD has already completed a feasibility study and detailed design to transform the existing four-lane highway into a six-lane access-controlled expressway with service lanes on both sides.
Under the proposed design, separate service lanes will accommodate local and slow-moving traffic, with adjacent roads connected to these lanes. Vehicles will be able to enter or exit the main expressway only through designated entry and exit points.
To ensure uninterrupted traffic flow, all existing intersections along the route will be converted into system/service interchanges or grade-separated structures such as flyovers and underpasses.
In urban areas, the main access-controlled highway will be elevated to reduce congestion and ensure smooth movement of traffic.
The entire corridor will be managed using modern Intelligent Transport Systems (ITS). The RHD expects the project to significantly reduce travel time between the capital and the port city, lower accident rates and establish a world-class transport corridor along the country's principal trade route.
Foreign financing process underway
RHD officials said the PDPP has been submitted to the Planning Commission for policy approval. Once approved, the proposal will be forwarded through the Economic Relations Division (ERD) to development partners to secure external financing.
An RHD official, speaking on condition of anonymity, said the Asian Development Bank (ADB) has expressed interest in financing the project. However, given the project's scale, ADB may not be able to finance it alone. As a result, a co-financing arrangement led by ADB may be pursued, potentially involving the Asian Infrastructure Investment Bank (AIIB) or the Japan International Cooperation Agency (Jica). The final decision will rest with the ERD.
Planning Commission officials said an initial review meeting will be held soon. As part of the policy approval process, the government will assess whether the project can be implemented under a public-private partnership (PPP) model. Such projects are commonly developed under PPP frameworks globally.
PPP may offer long-term benefits
Dr Shamsul Hoque, professor of civil engineering at Bangladesh University of Engineering and Technology, said Bangladesh often succeeds in building road infrastructure but struggles with long-term maintenance.
In contrast, PPP projects typically include operation and maintenance contracts spanning 25 to 30 years. As a result, investors have a direct incentive to maintain road quality and ensure regular upkeep.
He said developed countries have achieved better road infrastructure partly because of such long-term maintenance arrangements. Given the limitations of government manpower, PPP could be a practical solution that integrates investment, operation and maintenance responsibilities.
According to him, PPP financing can be more effective than multilateral bank loans because investors remain responsible for both construction and long-term operations, creating a direct incentive to sustain service quality.
Toll-based expressway planned
RHD officials said the upgraded highway has been designed as a toll-based facility.
Vehicles will not be able to freely move between the main carriageway and service lanes. Controlled access is expected to reduce congestion and travel times while improving safety and reliability.
The design includes a 13.5-km elevated section from Jatrabari to Madanpur, an 8-km elevated section from Salimpur to Sagarika at the entrance to Chattogram city; six flyovers at Signboard; Shimrail and Madanpur in Narayanganj, and at Baraiyarhat, Abutorab Bazar (Mirsarai) and Salimpur in Chattogram; and up to 10 lanes, including service lanes, in urban sections.
Officials said the elevated sections from Jatrabari to Madanpur and from Salimpur to Sagarika may be financed through PPP or asset monetisation mechanisms to reduce the overall financing burden.
Major spending components
According to the preliminary development project proposal, Tk24,700 crore has been allocated for road construction works along the 232.76km corridor; Tk35,179 crore is earmarked for structures and foundation works, including bridges, culverts and flyovers; Tk3,590 crore is allocated for acquiring 358.4 acres of land; and Tk1,479 crore has been set aside for compensation and rehabilitation of affected households and businesses.
In addition, Tk1,316.74 crore is proposed for site management, supervision and quality control facilities and Tk1,029 crore will be spent on ITS and fibre-optic-based toll collection systems. A total of 104 toll plazas – four major and 100 satellite plazas – will be constructed.
Nearly 96% of Bangladesh's import and export cargo travels through this corridor to and from Chattogram Port. RHD officials said around 30,000 vehicles currently use the highway daily, with trucks accounting for 30-40% of traffic.
