The government has approved the second revision of the Dhaka-Ashulia Elevated Expressway project, raising the cost by around 54% and extending the project deadline by four years to June 2030.

The Executive Committee of the National Economic Council (Ecnec) approved the revised proposal at a meeting held at the Secretariat today (22 July).

Under the second revision, the project cost has increased to Tk27,045.67 crore from Tk17,553 crore approved in the first revision. The latest proposal added Tk9,492 crore to the project cost.

The project initially received approval with an estimated cost of Tk16,901.32 crore. The latest revision estimates an additional Tk5,942 crore increase in government funding, marking a 75.59% rise. The project loan component has also increased by Tk3,550 crore, or 36.63%.

The mega project began in September 2017 with a completion deadline of June 2022. The first revision extended the deadline until June 2026. Ecnec has now approved another four-year extension based on the actual progress of work and required modifications.

Officials from the Planning Commission and the Bangladesh Bridge Authority said major design changes, additional components, exchange rate fluctuations and utility relocation requirements led to the higher cost and extended timeline.

The depreciation of the Bangladeshi taka against the US dollar played a major role in increasing expenses. The original project document calculated the exchange rate at Tk80.57 per dollar, which later rose to Tk86. In the second revision, the rate increased to Tk121.75.

The higher exchange rate increased the remaining payments to contractors by Tk3,736.61 crore, accounting for around 39.36% of the total cost increase.

Higher contractor payments also increased VAT and income tax obligations. The project requires an additional Tk1,000.36 crore, or 10.85% of the total increase, according to Planning Commission guidelines.

The fall in the value of the taka also raised the cost of imported construction materials. The project added Tk390.73 crore, or around 4.12% of the total increase, to cover higher customs duties on imported materials.

Design changes raise project cost

The revised project includes several engineering and design changes to improve connectivity, river navigation, and traffic management.

Following directives from the Bangladesh Inland Water Transport Authority (BIWTA), the classification of three branches of the Turag River was upgraded. This required increasing the bridge's vertical clearance from 7.62 metres to at least 12.2 metres. Engineers also extended span lengths up to 90 metres, increasing the cost by Tk597.66 crore, or 6.30%.

The expansion plan of the Dhaka-Tongi railway corridor from two tracks to four tracks, with provisions for six tracks in the future, required changes to bridge designs. The revised design increased span lengths up to 125 metres and added Tk153.20 crore, or 1.61%, to the cost.

The project added a trumpet interchange at Bypail to reduce traffic congestion, costing Tk610.07 crore, or 6.42%. Raising nearby structures to 18 metres required Tk166.41 crore, while a new ramp connecting the expressway with the third terminal of Hazrat Shahjalal International Airport added Tk243.50 crore.

Changes in design, new interchanges and expansion of toll plaza facilities increased land acquisition requirements from 10.89 hectares to 14.5 hectares. This added Tk747.55 crore, or 7.88%, to the project cost.

The original project plan did not include utility relocation and land rental costs. The revised proposal allocated Tk515 crore for shifting electricity, gas and water lines. It also included Tk1 crore for land rental, bringing the total additional allocation to Tk516 crore, or 5.44% of the cost increase.

Project aims to ease Dhaka traffic

The 24-kilometre Dhaka-Ashulia Elevated Expressway project starts from Kawla near Hazrat Shahjalal International Airport and will run through Ashulia to Sreepur in Savar. The Bangladesh Bridge Authority is implementing the project.

The government launched the project to reduce traffic congestion in Dhaka and nearby industrial areas and improve transport links along key economic corridors.

Rapid urbanisation in Dhaka, Savar, and Ashulia, along with daily commuter pressure, has created severe congestion on the route. The traffic problems have also delayed the transportation of export goods, including readymade garments, to Chattogram Port.

The project aims to improve connectivity in areas with large numbers of garment factories and industries. Heavy traffic during daily commuting, goods movement and festivals such as Eid has often delayed the transport of raw materials from Chattogram Port and the delivery of finished products.

Project history

The project began with a pre-feasibility study in 2015 for the Abdullahpur-Bypail route. On 22 January 2015, the government signed a Memorandum of Understanding (MoU) with China National Machinery Import and Export Corporation (CMC) under a government-to-government arrangement.

Ecnec approved the project on 24 October 2017 with an estimated cost of Tk16,901.32 crore. The government signed the commercial contract on 29 November 2017. It later signed a loan agreement with China Exim Bank on 26 October 2021, which became effective on 10 May 2022.

During implementation, China Exim Bank changed its financing policy and agreed to finance up to 85% of the project cost. The Bangladesh government had to provide the remaining 15%.

Along with exchange rate changes, the financing adjustment increased the project cost to Tk17,553.04 crore under the first revision approved on 1 June 2022.

The Covid-19 pandemic delayed the project's construction start. After financing arrangements were completed and conditions improved, construction officially began on 28 October 2022.

The project includes a construction period of five years and two months, followed by a two-year Defects Liability Period (DLP).

Second revision approved

Officials said the second revision became necessary because of design changes, additional works, exchange rate fluctuations, and land and utility-related challenges.

The revised proposal extends the deadline to 30 June 2030, including the two-year DLP. The total project cost now stands at Tk27,045.68 crore, around 54% higher than the first revised cost.

The revised proposal was reviewed at a Project Evaluation Committee (PEC) meeting on 21 January 2026, after which the Development Project Proposal (DPP) was restructured.