An ideal example of a poorly thought-out plan

• The average daily traffic was recorded at 3,190 vehicles.
• The daily projected vehicular traffic is 18,485.
• The daily traffic surpassed 10,000 vehicles on three occasions.

One year later, the Karnaphuli tunnel is incurring losses of over Tk 27 lakh per day.

Since its inauguration a year ago, the much-anticipated Karnaphuli tunnel has attracted only a third of its projected traffic, earning less than what it requires for maintenance. The 3.32 km tunnel under the Karnaphuli River in Chattogram, opened on October 28 last year, has seen an average daily traffic of 3,910 vehicles, generating Tk 10.37 lakh daily, according to Bangladesh Bridge Authority data. However, the tunnel’s daily operational cost stands at Tk 37.47 lakh. Initial project forecasts in January 2023 estimated that 18,485 vehicles would use the tunnel daily this year.

China Construction Company Ltd has a five-year contract to maintain the tunnel, costing Tk 983.82 crore. Meanwhile, Bangladesh also faces interest payments on a $705 million Chinese loan, with principal repayments set to begin this fiscal year.

Prof. Selim Raihan, Executive Director of the South Asian Network on Economic Modeling, noted that policymakers had not sufficiently assessed the tunnel’s necessity for linking the port city to Anwara upazila. Given the high project cost, he questioned its potential for a substantial return.

Since opening, the tunnel has generated Tk 37.45 crore from 14.12 lakh vehicles, while operation costs have reached Tk 134.46 crore. Of these vehicles, 77% were light vehicles, and 12% were trucks. Daily traffic surpassed 10,000 vehicles only three times in its first 359 days.

Deputy Project Director Abul Kalam Azad highlighted that several government and private projects planned around the tunnel have not materialized. The tunnel was envisioned under a “one city, two towns” concept, akin to Shanghai, linking the Mirsarai Economic Zone with the Matarbari Deep Sea Port. Planned expansions of Chattogram port’s jetty and numerous industrial units in Anwara have yet to be implemented, contributing to lower-than-expected traffic.

Spending on the tunnel is set to rise once loan repayments begin early next year. Nasir Uddin Chowdhury, former BGMEA vice president, added that authorities had not initiated industry-building efforts that would have increased tunnel traffic. He noted that economic conditions in recent years have also dampened business interest in new investments.

Economist Moinul Islam observed that traffic may increase once the 230-km marine drive road is completed. While the tunnel won’t be fully utilized for some years, greater benefits are expected when the Matarbari deep sea port and bay terminal become operational.

Prof. Selim Raihan also pointed out that the tunnel’s distance from Chattogram’s core city limits its current utility. However, a new township in Anwara funded by Chinese investment is in development.

The tunnel project, approved by the Executive Committee of the National Economic Council (Ecnec) in November 2015, initially cost Tk 8,446.64 crore, later rising to Tk 10,689.42 crore. Traffic projections estimated an average of 28,305 vehicles by 2025 and 37,946 by 2030. China’s Exim Bank financed $705.80 million of the project at a 2% interest rate, with a 0.20% service charge, while the Bangladesh government covered the remainder. The loan has a 15-year repayment term with a five-year grace period.