Bangladesh Economy: News & Updates

[Homo Sapiens]

Friends,I am converting this thread into general discussion about Road infrastructure development in Bangladesh.All type of relevant news,views and analysis are welcome.
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Update : 2016-07-17 21:18:45
‘Dhaka-Sylhet 4-lane highway construction begins next month’
BSS


Road Transport and Bridges Minister Obaidul Quader on Sunday said the government would start the construction of Dhaka-Sylhet Four Lane Highway from next month. "The finance minister has already arranged required fund for the project," he told the Jatiya Sangsad while replying to a supplementary question from treasury bench member Abdul Momin Chowdhury, BSS reports. Replying to another question from Jatiya Samajtantrik Dal lawmaker Begum Lutfa Taher, Quader said the ministry has included a sub-clause in the proposed Road Transport Law, 2016 so that no other passengers are allowed to sit on the reserved seats. He informed the House that the government has reserved six seats in each minibus and nine seats in each big bus for women, children and physically challenged persons.

http://www.dhakatribune.com/bangladesh/2016/jun/30/highway-costs-exorbitant



1,752km highways to be upgraded to four lanes

http://newstoday.com.bd/index.php?option=details&news_id=2403903&date=2015-02-24

The government has decided to upgrade 1,752 kilometers of highways across the country to four- lane ones, aiming to make long-distance journeys smooth and risk free ones, reports UNB. A feasibility study on the four-lane upgradation works on the highways has already been done under the Technical Assistance for Sub-regional Road Transport Project and the designs for the works will be completed by June next, according to project officials. "On completion of the designs, the government will decide when the physical works on the highways will begin," project director M Ali Masud Haider told UNB. Apart from converting the highways into four-lane ones, two additional lanes will be created along those for slow-moving vehicles like rickshaws and van, Haider said.

The project works include 286 km road on Dhaka- Sylhet-Tamabil highway, 225 km on Chittagong-Cox's Bazar-Teknaf highway, 222 km on Doulatdia-Magura- Jhenidah highway, 52-km on Dhaka-Mawa-Charjanajat- Bhanga highway, 138 km on Rangpur-Teesta-Burimari highway, 157 km on Hatikamrul-Rangpur highway, 132 km on Faridpur-Barisal highway, 109 km on Barisal- Kuakata highway, 111 km on Rajshahi-Hatikamrul highway, 83 km on Sonamasjid-Rajshahi highway and 98 km on Comilla-Brahamanbaria highway.

Mentioning that international standards will be maintained in the construction works, the Project Director said, "There'll be a marked change in the country's communication sector with the completion of the project." Once the design process is completed, the government will hold some quick meetings and seek funds from donors to start the construction work on priority basis, Road Transport and Highway Division Secretary MAN Siddique told the news agency. He said the construction works on some highways, which will be connected to the Asian Highway, will start first and the rest will be done gradually. Sources at the Road Transport and Bridge Ministry, however, said the construction works will kick off from in the beginning of the next year. Project director Masud Haider said the feasibility study and the designs will cost approximately Tk 89,28,00,000 where Asian Development Bank (ADB) will provide Tk 66,36,50,000 and the rest will be given by the government. Two foreign companies - Australia-based SMEC and Sweden-based HIFAB - are making the designs. Ministry sources also said the construction works on the Dhaka-Chittagong four-lane highway will be finished by December next. On the other hand, the construction works on the 87.18-km long Joydebpur-Mymensing four-lane highway is underway which is expected to be completed within June 2016. Besides, the construction work on the 70-km Joydebpur-Chandra-Tangail highway is expected to be completed in March 2018.

Highway costs exorbitant
Shohel Mamun

• 
  Construction of the four-lane Dhaka-Tangail Highway in progress
  Photo- DHAKA TRIBUNE

Unusually high construction costs are set to impact three upcoming highway projects in Bangladesh.

While the World Bank recommends that construction of a new four-lane highway should cost Tk17 crore per kilometre, estimated cost in one project alone could go as high as Tk118 crore per kilometre.

Also, compared to the recommended Tk11 crore cost for four-lane upgrades, Bangladesh will be spending around Tk54 crore on an average for its projects.

These are extremely steep numbers considering that European countries spend equivalent to Tk28 crore to construct each kilometre of highway.

Experts, however, argue that excluding facilities and land acquisition expenditures, the actual construction cost in most Bangladeshi projects should not exceed Tk20-22 crore per kilometre.

But such low costs are not the case in several upcoming highway projects.

The new 53km Dhaka-Mawa four-lane highway, construction for which will begin at the start of next year, is expected to cost the government around Tk6,252 crore – or Tk117.96 crore per kilometre.

Two other four-lane upgrade projects will also see their construction begin next year with funding from the Asian Development Bank.

The 157km Rangpur-Hatikumrul four-lane upgrade project cost is Tk8,175 crore (Tk52.07 crore per kilometre); for the Dhaka-Sylhet four-lane upgrade project, the total cost is Tk12,665 crore (Tk56.4 crore for each kilometre).

All cost estimates are way above World Bank’s recommendations.

According to the global bank’s research, low and middle income countries should spend around Tk17 crore per kilometre for a new four-lane highway, and Tk11 crore to upgrade a two-lane highway to four-lane.

Road Transport and Highways Division Secretary MAN Siddique told the Dhaka Tribune that the project expenditures were higher in Bangladesh because U-loops, flyovers, underpasses, intersections, bridges, drains etc were included in the project costs.

Talking about the upcoming highway projects, Siddique said: “These roads should be international standard.”

But even international road projects require significantly less money than what it costs here in Bangladesh.

It takes more than double the money to construct a single kilometre of highway in Bangladesh than in Europe, the United Nations Economic Commission for Europe (UNECE) has found.

In a 2014 report, the UNECE said European countries at the time spent equivalent to Tk28 crore per kilometre to construct a four-lane highway, and Tk20 crore for a two-lane highways on an average.

Even neighbouring countries such as India and China spend only a little compared to what Bangladesh will be spending for the upcoming projects.

According to India’s 12th five-year plan for 2012-17, the cost for each kilometre of four-lane highway should be equivalent to around Tk9-10 crore, and Tk5-6 crore for two-lane roads including the cost of land acquisition.

Meanwhile, China’s five-year plan reads that the estimated cost of four-lane highways should be equivalent to Tk12-13 crore per kilometre, while the cost for two-lane is fixed below Tk10 crore.


The main reason for the high costs in Bangladesh, experts say, is corruption; but prices are also pushed up by high import duties on construction materials, lack of experience and expertise.

According to World Bank findings, companies in Bangladesh paid officials up to 15% of the contract value in exchange for award of the contract. Such corrupt methods more than often hiked the costs.


Shamsul Haque, a professor of civil engineering at Buet, said: “Bangladesh is a heavy costing country for such highway construction works. Corruption, mismanagement, crisis of cost calculation expertise are the main causes of high construction costs.”

However, there are examples of highway projects being completed for considerably less amount of money.


The 70km Joydebpur-Tangail four-lane project costs Tk2,884 – or a per kilometre cost of Tk41.2 crore; the 192km Dhaka-Chittagong four-lane upgrade project costs Tk3,794.29 crore – or a per kilometre cost of Tk19.73 crore; the 87.18km Joydebpur-Mymensingh four-lane upgrade project costs Tk1,815.12 crore – or a per kilometre cost of Tk20.82 crore.

- See more at: http://www.dhakatribune.com/bangladesh/2016/jun/30/highway-costs-exorbitant#sthash.RXSDs9a7.dpuf

 

[艹艹艹]

Analysis is very right

 

[UKBengali]

Although corructions is a big factor, the main reason is that BD is a very densely populated country and
so buying the required land costs many hundreds of millions of dollars for each of the major projects.

 

[Major Sam]

damn expensive

 

[Homo Sapiens]

damn expensive

Only 'road construction' is not much costly then recommended by WB.But in case of BD road building requires a lot of compensation to the owner of acquired land,building a lot of bridge,culverts,intersection ect.Plus a lot of things have to import,corruption,lack of local expertise and experience all added to the problem.But not all highway cost high,as recently concluded two 4 lane highway was made with reasonable price.

 

[bluesky]

Although corructions is a big factor, the main reason is that BD is a very densely populated country and
so buying the required land costs many hundreds of millions of dollars for each of the major projects.

Apart from land costs that you have mentioned plus corruption there is another factor. The total volume of Earthwork is too high in BD. In Pakistan and India the roads are built at almost the same level as the surrounding lands are.

But, BD is an all low lying country. So, it is a huge volume of earthwork. For a new road the two sides are cut to fill/raise the earth level. It is a huge earthwork. But, a 4-lane earthwaork cost may be low because a 2-lane road already exists there.

 

[Major Sam]

Only 'road construction' is not much costly then recommended by WB.But in case of BD road building requires a lot of compensation to the owner of acquired land,building a lot of bridge,culverts,intersection ect.Plus a lot of things have to import,corruption,lack of local expertise and experience all added to the problem.But not all highway cost high,as recently concluded two 4 lane highway was made with reasonable price.

In our country motorways are usually 10-20 feet higher than surrounding area. The cost for upgrade to 4 lane highway as mentioned in article is way higher than our motorways. thats why i say damn expensive. It means hell alot of corruption.

bec if am not wrong you guys are just upgrading to 2 lane to 4 lane. so the cost should not b that much high.

 

[Russell]

Thing is...despite all this, we are willing to put up with it.

Not too long ago...we saw the money being stolen but gained nothing in return. With expectations so low, despite current projects usually wasting so much money - the fact that roads are being built, people are happy.

Ask those who travel on the Dhaka - CTG how long it used to take to travel on that highway.

Now with the flyover at jatrabari and the 4 lane highway...I drive to Feni in 2.45min on a regular basis.

*I am not justifying wastage of taxpayers money...just what the 'average' person in BD thinks.

 

[Homo Sapiens]

In our country motorways are usually 10-20 feet higher than surrounding area. The cost for upgrade to 4 lane highway as mentioned in article is way higher than our motorways. thats why i say damn expensive. It means hell alot of corruption.

bec if am not wrong you guys are just upgrading to 2 lane to 4 lane. so the cost should not b that much high.

One factor is different method of calculation.Associated infrastructure cost are calculated with per km cost.Two recently completed 4 lane highway costed 18-20 crore Taka per km,slightly above the world bank recommendation of 17 crore.There might be some other unusual factors for this high cost of building these three 4 lane road I guess.

.Another problem is,our road trespass through densely populated area and a lot of shops and other building in close proximity to the road.So any widening of road requires a lot of demolition and compensation payment.So it is both lengthy and costly process.But once completed,the road can be fully utilize due to dense settlement.So it requires less per capita road then thinly populated region.So our cost is high but require less milage.

 

[UKBengali]

One factor is different method of calculation.Associated infrastructure cost are calculated with per km cost.Two recently completed 4 lane highway costed 18-20 crore Taka per km,slightly above the world bank recommendation of 17 crore.There might be some other unusual factors for this high cost of building these three 4 lane road I guess.

.Another problem is,our road trespass through densely populated area and a lot of shops and other building in close proximity to the road.So any widening of road requires a lot of demolition and compensation payment.So it is both lengthy and costly process.But once completed,the road can be fully utilize due to dense settlement.So it requires less per capita road then thinly populated region.So our cost is high but require less milage.

This is the important bit as a road in BD can be no longer than around 250km that goes from the capital to any of the other major cities.

In Pakistan and India, roads will be routinely over 500km in length to connect one major city to another.

 

[Homo Sapiens]

This is the important bit as a road in BD can be longer than around 250km that goes from the capital to any of the other major cities.

In Pakistan and India, roads will be routinely over 500km in length to connect one major city to another.

Maximum distance possible from Dhaka within BD is 500 km(Cox'sbazar or Panchagarh).For India it is 2500-3000 km and for Pakistan around 1200-1500km.

 

[American Pakistani]

. In Pakistan and India the roads are built at almost the same level as the surrounding lands are..

wrong

Following is a video of Pakistani motorway that have the camera focused to the sideways, this way you can clearly see the highway being much higher than the actual land.

Most pakistani highways are build after cutting the tough terrains.

 

[Khan_21]

This is the important bit as a road in BD can be no longer than around 250km that goes from the capital to any of the other major cities.

In Pakistan and India, roads will be routinely over 500km in length to connect one major city to another.

One thing I really like here is our 6 lane motorways connecting cities . Makes driving really fun . Recently went from Peshawer to Lahore . That's 520 KM , and covered it in no time . Bangladeshi's problem with 4 or 6 lane is its population density or maybe just the lack of will of the government to make them .

 

[UKBengali]

One thing I really like here is our 6 lane motorways connecting cities . Makes driving really fun . Recently went from Peshawer to Lahore . That's 520 KM , and covered it in no time . Bangladeshi's problem with 4 or 6 lane is its population density or maybe just the lack of will of the government to make them .

It used to be finance, governance and population density in the past.

Now it is just population density that is the major impediment as the government needs to
legally buy the land that is owned by the common citizen.

I think that BD could probably do without anymore than 4-lane highway for next 10-15 years
on all but Dhaka-Chittagong route, as the railways are also getting a major boost, and so both goods and people can be moved efficiently via railways as well.

 

[Khan_21]

It used to be finance, governance and population density in the past.

Now it is just population density that is the major impediment as the government needs to
legally buy the land that is owned by the common citizen.

I think that BD could probably do without anymore than 4-lane highway for next 10-15 years
on all but Dhaka-Chittagong route, as the railways are also getting a major boost, and so both goods and people can be moved efficiently via railways as well.

BD needs to control it's population. Its already in top 10 most congested countries. Infrastructure cannot improve if population gets so out of control in such a limited area.