Dhaka-Ashulia Expressway cost rises by Tk9,680 crore with addition of three new links

Dhaka-Ashulia Expressway Cost Jumps by Tk9,680cr as Revised Plan Heads to ECNEC

The Dhaka-Ashulia Elevated Expressway project is set for a major overhaul, with its revised proposal scheduled for ECNEC approval today after remaining pending for nearly six months. The updated plan includes three new transport links and an additional Tk9,680 crore in funding, taking the total project cost to Tk26,581 crore.

Prime Minister and ECNEC Chairperson Tarique Rahman is expected to preside over the meeting at the Bangladesh Secretariat, where the proposal is among nine development projects on the agenda.

The revised plan expands the scope of the 24-kilometre expressway by adding a new interchange at Baipayl, a direct connection to the third terminal of Hazrat Shahjalal International Airport, and a link to the planned underground MRT Line 1.

Planning Commission officials said the proposal had remained under review since January after being examined by the Project Evaluation Committee. Given the project's strategic importance to the Dhaka-Ashulia-Savar corridor and the northern transport network, it has now been cleared for ECNEC consideration.

The new additions are expected to transform the expressway into a multi-modal transport corridor by integrating highways, airport infrastructure and the future metro network. The route stretches from Kawla through Abdullahpur, Kamarpara, Dhowr, Ashulia, Zirabo, Baipayl and Savar EPZ to Sripur Bus Stand.

Project Cost Rises by More Than 57%

The project was initially approved at Tk16,901.32 crore, including Tk5,951.41 crore in government funding and Tk10,949.90 crore in Chinese loans. A first revision increased the cost to Tk17,553 crore, while the latest proposal raises it further to Tk26,581 crore—about 57% higher than the original estimate.

Officials attributed the cost escalation to exchange rate fluctuations, higher VAT and income taxes, increased customs duties, rising land acquisition and utility relocation expenses, consultancy costs, revised contingencies and several design changes.

The proposal also seeks to extend the project deadline by four years to June 2030. Although the project was originally scheduled to run from September 2017 to June 2022, ECNEC approval came only in June 2022, pushing the completion target to June 2026.

As of June 2025, financial progress stood at 66.86%, with Tk11,735.17 crore spent, while physical progress reached 52%.

Financing Delays and New Infrastructure

Project Director Md Shafiqul Islam said the expressway is being implemented under a government-to-government agreement with China. An MoU with China National Machinery Import and Export Corporation was signed in January 2015, followed by a commercial agreement in November 2017. The loan agreement with China Exim Bank was signed in October 2021 and became effective the following year.

According to the project director, the delay between the commercial and financing agreements disrupted implementation, making the latest revision necessary to accommodate increased financial and technical requirements.

Officials said the Baipayl interchange, airport connection and MRT Line 1 link account for much of the additional cost but are expected to significantly improve connectivity and reduce congestion along one of Bangladesh's busiest industrial and residential corridors.

ECNEC will also consider eight other development projects, including river erosion protection in Bhola, development initiatives in Greater Dinajpur, rural road maintenance, social infrastructure expansion, disaster shelters, gas well drilling, electricity distribution upgrades in Sylhet and expanded dialysis services at government hospitals.

Once completed, the Dhaka-Ashulia Elevated Expressway is expected to evolve from a standalone elevated road into a key transport corridor connecting Dhaka with northern Bangladesh, the country's largest airport and its future underground metro system.