Ctg Correspondent

The Karnaphuli Tunnel, constructed beneath the River Karnaphuli in Chattogram, is facing significant financial losses due to lower-than-projected traffic volumes.

To mitigate these losses, the interim government is exploring measures such as improving road connectivity, developing the tunnel’s surrounding areas, and potentially leasing out service areas to the private sector, recognising the need to enhance traffic flow and generate additional revenue streams to offset operational costs.

According to Karnaphuli Tunnel sources, toll collection for the tunnel from January to December 2024 amounted to Tk35.59 crore. During this period, 12,89,230 vehicles used the tunnel, with 76% being light vehicles, less than 1% heavy vehicles, and 23% medium vehicles.

On average, 3,868 vehicles use the tunnel daily, significantly lower than the feasibility study projection of 18,000 vehicles per day.

The tunnel incurs a daily cost of around Tk37 lakh, while toll collections barely reach Tk10 lakh.

Critics attribute the losses to a flawed feasibility study, questioning the logic behind the high-cost project. The tunnel has become a financial burden for the government, with experts labelling it as an overambitious mega-project.

Muhammad Fouzul Kabir Khan, adviser to the Ministry of Road Transport and Bridges, said, “Due to the previous government’s mistakes, we cannot dismantle or shut down this tunnel now. We are exploring ways to minimise the losses, including discussions with the Roads and Bridges divisions to formulate a viable plan. Connecting the tunnel with additional roads and ensuring greater traffic flow are among our priorities. Unlike before, we won’t rely on arbitrary numbers in feasibility studies, as we have loans to repay.”

Sources told this correspondent that the Bridges Division has planned to enhance revenue by developing the Anwara end of the tunnel and leasing out the proposed service area to the private sector.

Additionally, there are plans to modify the connecting roads at both ends of the tunnel.

Proposals to build bypass roads for Dhaka-Cox’s Bazar traffic to encourage tunnel usage are also under consideration.

Dr Md Shamsul Hoque, professor of Civil Engineering at the Bangladesh University of Engineering and Technology (BUET), criticised the project, stating, “The Karnaphuli Tunnel is a politically motivated showcase project. I see little hope for its success given its flawed feasibility study, a practice almost unique to Bangladesh. Such projects do not serve public interest and reflect the whims of political parties. Without curbing such practices, the government will struggle to recover from the tunnel’s losses.”

15 YEARS OF DEBT REPAYMENT

The Executive Committee of the National Economic Council (ECNEC) approved the tunnel project in November 2015 under the title “Construction of Multi-Lane Road Tunnel under the River Karnaphuli.”

Construction, initially slated for completion in June 2020, began on 24 February 2019. The project’s initial cost of Tk8,447 crore was later revised to Tk10,689 crore, including a Tk6,070 crore loan from China’s Exim Bank.

The loan carries a 2% interest rate, with an additional 0.2% service charge. The repayment period spans 15 years, including a five-year grace period starting after the first instalment.

Company (CCCC), which is also responsible for toll collection and maintenance.

Critics argue that Chinese loan conditions, such as the mandatory use of Chinese contractors without competitive bidding, lead to inflated costs.

The 3.32-kilometre-long tunnel became operational on 28 October 2023. The then Awami League government rushed to inaugurate it ahead of the 2024 general election. However, even 15 months after its opening, the tunnel remains a loss-making project.