Elevated Expressway construction resumes as investors' dispute over share ends
Construction on the Dhaka Elevated Expressway has resumed following a recent decision by the Singapore International Arbitration Centre (SIAC), resolving a dispute among the project's key shareholders.
The conflict, which involved three foreign investors, had previously led to a stalling of the project.
The dispute was mainly between the majority shareholder, Thailand-based Italian-Thai Development Public Company Limited (Ital-Thai), which owns 51% of the project, and two Chinese companies—China Shandong International Economic and Technical Cooperation Group (34%) and Sinohydro Corporation Limited (15%)—which together hold 49%.
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On 20 October, SIAC ruled that there were no legal obstacles to transferring Ital-Thai's 51% share to the two Chinese companies. Following the decision, construction has resumed, with the remaining 25% of the work now set to be completed.
The conflict began around a year ago and led to legal proceedings in both Bangladesh and Singapore.
The project's Director AHM Shakhawat Akhtar said, "Now that the SIAC has made its decision, Ital-Thai is preparing to transfer its shares. The Chinese companies have already resumed work to finish the project."
"So far, 75% of the project has been completed. Once the share transfer is finalised, construction will speed up, and we aim to finish the remaining 25% by June 2025," he added.
What was the dispute?
The project, inaugurated in April 2011, has an estimated construction cost of Tk8,940 crore. Initially, Ital-Thai formed First Dhaka Elevated Expressway Company Limited to build and manage the expressway, with the company covering 73% of the cost and the Bangladesh government funding the remaining 27%.
In 2019, due to financial difficulties, the company secured an $861 million loan from Chinese banks—Exim Bank of China and the Industrial and Commercial Bank of China—and sold shares of the Expressway Company to Chinese contractors Shandong (34%) and Sinohydro (15%) in exchange.
However, in January 2023, after Ital-Thai missed a loan payment, the banks froze disbursements, leading the two Chinese companies to seek control of the remaining 51% share held by Ital-Thai.
Ital-Thai subsequently filed a case with Bangladesh's High Court on 28 January 2024, challenging the Chinese companies' demand for a share transfer. At the same time, Ital-Thai also filed a similar case with the Singapore International Arbitration Centre (SIAC).
On 16 May, the Appellate Division of Bangladesh's Supreme Court issued a temporary stay order, instructing the companies to maintain the status quo on share transfers until 30 May. This order was later extended until the SIAC delivered its verdict.
The Appellate Division dismissed the case on 1 September, and the SIAC's decision in October effectively ended the legal battle.
The Dhaka Elevated Expressway is 19.73km long, and with its ramps, it extends to 46.73km. It connects Hazrat Shahjalal International Airport to the Dhaka-Chattogram Highway at Kutubkhali near Jatrabari.
The first section of the expressway, an 11.5km stretch from South Kawla to Farmgate, was inaugurated on 2 September 2022, and opened to the public the next day. The ramp connecting this section to Karwan Bazar was opened in March 2023.
