Investors eye around 11% return over 25-year period

What profit do you anticipate from your investment?

Considering net present value over 25 years, we are looking at around 11% return on the total investment of $1.2 billion. 

While not extraordinary, it is satisfactory for the investment. This 11% constitutes an internal rate of return (IRR) calculated as net present value.

Tell us about the toll rates. 

In the concession agreement, the toll rates were established in 2011 for different vehicle categories. 

Category-one, which includes four-wheel vehicles like cars, entering at Airport or Kutubkhali, is charged Tk125. At other ramps, the toll is Tk100.

Buses fall under category-two and are required to pay double the Category-one. Six-wheeled trucks, categorized as three, pay tolls four times higher than Category-one. Trucks with more than six wheels, as Category-four, pay tolls five times higher.

This toll rate structure permits toll adjustments every three years, calculated 60% of the past three-year Consumer Price Index (CPI). 

However, the first toll adjustment was agreed upon in 2018 due to the extended construction timeline. And since then the toll rates have been adjusted three times.

Presently, the original Tk125 toll has increased to around Tk155 for using the full expressway, and the Tk100 toll is now approximately Tk120 for partial use.

Meanwhile, as we are now on partial operation, the government has requested a discount for two reasons: the route is only 11 kilometres, not the full length, and to allow people to become accustomed to toll payment.

Consequently, an agreement has been reached to establish a single toll rate of Tk80 for category-one vehicles, regardless of the entrance used and double for category-two, quadruple for Category-three, and quintuple for Category-four vehicles.

There are 15 ramps from the Airport to Farmgate, yet only 13 are set to open on September 2nd. What's about the remaining two?

All 13 entrances will be operational, excluding Banani-2 and Mahakali. These two entrances will also open by the end of September after finalising remaining work

Initially, motorcycles might be prohibited on the expressway. Why?

Motorcycles might not be allowed on the expressway due to safety concerns. Their fast speeds and frequent lane changes could pose risks. 

Unlike overseas where motorcycles follow straight paths, local behaviour could be dangerous. Additionally, the speed limit is 60, yet motorcycles may exceed it.

Is lane changing allowed on the expressway?

Yes, it is allowed, but with proper adherence to signs indicating permitted overtaking or lane changes.

Drivers must familiarise themselves with road signs, and we'll educate them about these signals. 

Gradually, we'll provide this information on websites and educate people to enhance their understanding.

What safety measures are in place on the expressway?

CCTV cameras cover the entire expressway, aiding surveillance and rapid response to accidents.

A control room oversees traffic and coordinates emergency responses for accidents. Patrol teams, police, ambulance, and fire stations are readily available round the clock.

Further, there are electronic signs cautioning against reckless driving. If one exceeds the 60kph limit, the system will detect and first warn to slow down. Repeated speeding triggers warnings every two kilometres. 

For repeat offenders, the system captures photos automatically and forwards them to traffic police for necessary action, encouraging adherence to rules.

What caused the project delay?

This is a Greenfield project, starting from scratch. Delays arose from unpreparedness, land issues, and realignment. 

Initiated in 2000, the agreement was signed in 2011. But in 2013, the Prime Minister requested a new alignment to minimise private land use. After challenges with approvals, the project proceeded smoothly.

Was there a fund crisis? How did you overcome it?

We initially sought funding from International Finance Corporation, a concern of the World Bank Group, aiming for around $800 million. However, due to a dispute between the government and the World Bank, the lending halted. This caused a two to three-year delay in securing funds.

Negotiations were further stalled due to Bangladesh's below investment-grade credit rating. To overcome this, we partnered with Chinese entities, accessing their financial market. Eventually, project finance from China, with a 49% stake going to Chinese state enterprises, became our solution. 

This journey took about six years, but we were fortunate in the end. And there is no other problem now.

How do you feel after completing a section of the elevated expressway?

I feel joyful, excited, and accomplished. Our dedicated efforts have led to this triumphant moment.

If another project like this comes, would you invest?

Absolutely, we would invest. Because Dhaka's growth potential is immense.