Funding issue for Bangladesh tunnel but highway moving forward

Two major infrastructure projects in Bangladesh are experiencing rather different fates at present. A lack of suitable funding has resulted in the US$705 million Karnaphuli river tunnel project coming to a grinding halt. However the $1.53 billion contract for the Dhaka to Ashulia highway has now been awarded to the Chinese firm, China National Machinery Import and Export Corp (CMC). Chinese funding is intended to pay for the Karnaphuli Tunnel, but has so far been delayed and the Chinese contractor awarded the project has been unable to bring the equipment to site as a result. The project includes building a 3.4km tunnel, approach roads measuring 4.9km and a 740m bridge.

However the outlook is positive for the elevated Ashulia to Dhaka route, which will measure 24km long. The project is expected to open to traffic by mid-2022.