Karnaphuli Tunnel: The Tk 4.5 billion 'seven-star' guesthouse remains unused

Karnaphuli Tunnel: Guesthouse Adds to Ballooning Costs and Revenue Struggles

The construction cost of the Bangabandhu Sheikh Mujibur Rahman Tunnel under the Karnaphuli River in Chattogram saw a significant rise due to the inclusion of a luxurious seven-star guesthouse. However, the guesthouse remains unused, while the tunnel continues to incur substantial daily losses.

The guesthouse features a 5,000-square-foot bungalow with six rooms, a swimming pool, and high-end furnishings. It also includes 30 additional rest houses. According to sources from the bridges division, the facility was designed with the potential visit of ousted prime minister Sheikh Hasina in mind. However, a lack of manpower has kept the facilities non-operational, despite a construction cost of Tk 4.5 billion.

The tunnel, inaugurated in October 2023, has been struggling with revenue deficits as traffic levels fall below projections. Monthly toll collections average Tk 25 million, while maintenance costs stand at Tk 115 million, leaving a monthly shortfall of over Tk 90 million.

Rising Costs and Mismanagement

The project, originally estimated at Tk 84.46 billion, faced three budget revisions, eventually reaching a final cost of Tk 106.86 billion. The inclusion of the guesthouse during the project’s mid-phase contributed significantly to the cost hike.

The guesthouse is situated in the service area near the Anwara end of the tunnel, covering 72 acres of land. In addition to rest houses, the service area includes a conference center, a health facility, a helipad, a mosque, police and fire stations, a museum on Chattogram’s heritage and Bangabandhu’s legacy, and a large air conditioning system with a capacity of 1,182 tons.

Economics professor Mainul Islam from Chittagong University criticized the late addition of the high-cost guesthouse, calling it unnecessary and a means of inflating project expenses. He predicted that the tunnel would not reach full capacity usage for at least five to seven years, with toll revenue covering less than 25% of maintenance costs during this period.

Parallel Development

Further scrutiny surrounds the guesthouse’s proximity to a state-of-the-art tourism complex built by the tourism corporation on 13 acres near Parki Beach, just 1.5 kilometers away. The tourism complex, costing Tk 790 million, features cottages, a multipurpose building, a lake, and a playground, with 80% of construction completed. Insiders argue that constructing a guesthouse under the tunnel project, given the nearby complex, was redundant.

Legacy of Mismanagement

The tunnel, envisioned by the fallen Awami League government to transform Chattogram into a "one city, two towns" model similar to China's Shenzhen, connects Patenga and Anwara. The project was approved in 2015, but delays in loan agreements with China and additional expenses for land acquisition and utility adjustments caused repeated budget increases.

The cost escalation in 2021 to Tk 103.74 billion included the addition of the guesthouse, followed by another Tk 3.15 billion increase in January 2023 due to high exchange rates and guesthouse furnishings.

Now, the interim government faces mounting challenges as it grapples with the financial burden of the project. Attempts to cut losses, including initiatives led by Road Transport and Bridges Division Adviser Fouzul Kabir Khan, have yet to yield significant results.

The tunnel's financial struggles highlight concerns over feasibility studies, cost management, and questionable inclusions in large infrastructure projects.