Active Mixed AidData Chinese Aid

China Eximbank provides $1.126 billion preferential buyer’s credit for Dhaka-Ashulia Expressway Project (Linked to Record ID#52763 and ID#92382)

$1.13M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Bangladesh
Country	Bangladesh
Start Date	Oct 26, 2021
End Date	Sep 23, 2028
Duration	2,524 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92468`

Grant Description

China Eximbank provides $1.126 billion preferential buyer’s credit for Dhaka-Ashulia Expressway Project On July 20, 2011, the Government of Bangladesh's Executive Committee of the National Economic Council (ECNEC) provided in-principle approval for the Dhaka-Ashulia Expressway Project.

Bangladesh University of Engineering and Technology (BUET) conducted a pre-feasibility study in 2012 and estimated the possible project cost at around Tk 70 to 80 billion.

Then, in January 2015, the Government of Bangladesh's Bridges Division signed a memorandum of understanding (MOU) with China National Machinery Import and Export Corporation (CMC) to implement the project.

It was assumed at the time that the cost of the project would rise by 8 percent due to an increase in labor and material prices.

Later, a consortium, led by an Australian firm, conducted the final project feasibility test in 2016 and estimated the total project cost to be around Tk 100 billion. The Government of Bangladesh provided final approval for the project in 2017 with an estimated cost of Tk 169 billion.

Then, on October 26, 2021, China Eximbank and the Government of Bangladesh signed a $1,126,986,000 preferential buyer’s credit (PBC) agreement for the Dhaka-Ashulia Expressway Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

The proceeds of the PBC are to be used by the borrower to finance 85% of the cost of a $1.359 billion commercial (EPC) contract between Bangladesh Bridge Authority (BBA) and CMC, which was signed on November 29, 2017.

As of the June 30, 2023, the China Eximbank loan (PBC) had achieved a 15.1% disbursement rate ($170,597,000 out of $1,126,986,000).

This project involves the construction of a 24 km expressway that will connect Hazrat Shahjahal International Airport with Abdullahpur, Ashulia, Baipail and Dhaka Export Processing Zone (DEPZ) on the Nabinagar-Chandra highway.

The main objective of the project is to minimize the traffic congestion in and around Dhaka-Ashulia areas; the Dhaka-Ashulia Expressway will be connected to the Dhaka Elevated Expressway and is located within the alignment of the Asian Highway.

Upon completion, the project is expected to greatly reduce traffic congestion in the Abdullahpur-Ashulia-Bypail-Chandra corridor connecting Dhaka with 30 districts.

Vehicles will have to pay tolls to use the expressway and the thoroughfare is expected to boost the country's gross domestic product by 0.21 percent.

CMC, Jiangsu Provincial Construction Group, and Fifth Major Bridge Engineering Co Limited (MBEC-5) are the contractors responsible for implementation. A groundbreaking ceremony took place on November 22, 2022. The project was originally expected to commence in September 2017 and conclude in June 2022.

However, due to financing delays, the project's expected completion date was later pushed out to June 2026.

📋 Staff Comments

The Chinese project title is 孟加拉达卡至阿苏利亚高架高速公路项目.
The China Eximbank-financed Dhaka-Ashulia Expressway will eventually connect to the China Eximbank- and ICBC-financed Dhaka Elevated Expressway (captured via Project ID#52763 and ID#92382). Once both elevated expressways are operational, it is expected that people from the country's northern, western and south-western regions will be able to avoid the capital's perennial traffic jam as they go from one side of the city to another without having to travel on the existing city streets.
The Government of Bangladesh loan identification number is B1120211026A.

📚 Sources & References

Jointly Building Belt and Road towards SDGs - Bangladesh
China to give Tk 9,472cr for Dhaka-Ashulia Expressway
Bangladeshi government notice: Preferential Buyer's Credit Agreement has been signed with China on 10.26.2021
Dhaka-Ashulia Elevated Expressway: Work to start next month
Dhaka-Ashulia Elevated Expressway to be built with Bashundhara Cement
CMC AND JTEG ROAD CONTRACT IN BANGLADESH
China National Machinery Infrastructure
Chinese firm to build Dhaka-Ashulia Elevated Expressway
CMC Signs Contract for Dhaka-Ashulia Elevated Expressway Project
Dhaka-Ashulia expressway construction contract signed
Construction of Dhaka-Ashulia Elevated Expressway finally set to begin
进出口银行与孟加拉国财政部签署高速公路项目贷款协议
刷新海外交通工程新记录！江苏交工签约16亿元孟加拉高速公路项目
Dhaka-Ashulia Elevated Expressway construction kicks off
Dhaka Ashulia Expressway to be built with Bashundhara Cement Dhaka Ashulia Expressway to be built with Bashundhara Cement Dhaka Ashulia Elevated Express
Dhaka-Ashulia: Another expressway with onerous Chinese loan
Red tape slows China’s $20billion loan offtakes
DRS Official Commitments from China Through 2021
After four years, funding issue for Dhaka-Ashulia expressway goes
PM Hasina inaugurates construction of Dhaka-Ashulia Elevated Expressway
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Joint statement between the People's Republic of China and the People's republic of Bangladesh
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Chinese firm to construct tunnel beneath Bangladesh's Karnaphuli river
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Development of National Infra Network for Bangladesh Government Phase III
Annual Report 2016-17: Commitment for FY 2015-16
List of Foreign Aided ongoing Projects: Asia
Some inter-governmental projects between China and Bangladesh have not landed in the 2015-2016 fiscal year.
Chinese Exim Bank to give US$ 1.16b in loan, ২০১৬-১৭ অর্ ি বছরি স্বাক্ষরিত অনুদান ও ঋণ চুরিি তারিকা
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Ctg expressway
Ambassador H.E.Zhang Zuo Attends the Inauguration Ceremony of Karnaphuli Tunnel Boring Operations
Quader: 24% construction work of Karnaphuli tunnel completed
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独家丨中企海外项目周报（2022.6.6-2022.6.12）
中企承建孟加拉国河底隧道项目建成首条联络通道
中企承建的孟加拉国河底隧道项目实现双线贯通
孟加拉卡纳普里河底隧道项目实现全部联络通道贯通
Milestone on Bangladesh’s first underwater tunnel
Karnaphuli tunnel sees 77pc works done
Sub-contractors hired by Chinese firm cause delay in Karnaphuli tunnel project
China lockdowns delay Karnaphuli tunnel project by 6 months
Chinese company's request for extension of Karnaphuli tunnel timeline rejected
First underwater tunnel in Bangladesh excavated using China-developed machine
Breaking new ground on Bangladesh’s first underwater tunnel
Completion of first underwater tunnel for Karnaphuli River Tunnel Project
Quader orders work for Bangabandhu Tunnel to be completed soon
COMMITMENT
DISBURSEMENT AND REPAYMENT OF SUPPLIERS'/BYERS CREDIT (ACTIVE)
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DISBURSEMENT AND REPAYMENT OF EXTERNAL (ODA) LOANS (ACTIVE)
Table-7.2 COMMITMENT
DISBURSEMENT AND REPAYMENT OF EXTERNAL (ODA) LOANS (ACTIVE) Up to 30 June 2019
COMMITMENT
DISBURSEMENT AND REPAYMENT OF EXTERNAL (ODA) LOANS (ACTIVE)
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DISBURSEMENT AND REPAYMENT OF EXTERNAL (ODA) LOANS (ACTIVE)
中国进出口银行融资支持的孟加拉国卡纳普里河底隧道项目主体工程顺利获得接收证书
Chinese-built underwater tunnel in Bangladesh opens to traffic
PGCB Power Grid Network Strengthening
Chinese buyer’s credit to strengthen power system, power grid networks
Power Grid Network Strengthening Project under PGCB (G2G)
G2G contract to strengthen Power Grid Network under PGCB
Audited Statements of Power Grid Company of Bangladesh
Annual Report 2016-2017, press release
ANNUAL REPORT 2019-2020
盘点：2020年上半年中资承包商搞定融资与贷款的10个海外项目
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