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Chinese firm appointed as toll operator of Karnaphuli tunnel

Dhaka, Monday


02 December 2024


Business Insider Bangladesh

Chinese firm appointed as toll operator of Karnaphuli tunnel

BI Report || BusinessInsider

Published: 15:40, 18 May 2022   Update: 19:15, 18 May 2022
Chinese firm appointed as toll operator of Karnaphuli tunnel

A Business Insider Bangladesh infographic illustrated in April 2021

The government has appointed China Communication Construction Company Ltd (CCCC) as the toll operator of Bangabandhu Sheikh Mujibur Rahman Tunnel under the Karnaphuli river in Chattogram.

The Chinese state-owned CCCC is also the construction contractor of the tunnel.

The appointment of CCCC was approved at a meeting of the Cabinet Committee on Economy Affairs Wednesday, presided over by Finance Minister AHM Mustafa Kamal. The proposal came from the Bridges Division under the Ministry of Road Transport and Bridges.

Citing the proposal, Cabinet Division Additional Secretary Md Zillur Rahman Chowdhury told the media that Bangladesh does not have the skilled manpower and technology needed to operate the toll house for the tunnel.

Therefore, the Chinese consultant company has been appointed to run the toll plaza.

Under provisions in the Public Procurement Rules 2008, the Bridges Division can use its discretion to offer a Direct Procurement Method (DPM) to the Chinese firm entrusting it with managing the toll house.

Bangladesh Bridge Authority (BBA) under the Bridge Division proposed the appointment of CCCC on the basis of its performance-based work.

Moreover, the Chinese state-owned company with its 1.12 lakh employees has experience working in the transportation sector in China and abroad, the Bridge Division said in its proposal.

CCCC is constructing the 9.3km long tunnel, about 3.4km of which would be under the river.

BBA said the traffic management system at both ends of the tunnel is expected to be completed by 2023.

According to the feasibility study on the tunnel, which was done in 2013, the operational cost of the tunnel will be about $3.9 million per year, with a replacement cost of $1.9 million every five years. Considering an inflation rate of 6.4 percent per year, the BBA is likely to spend over Tk40 crore each year on operating the tunnel.