The government is aiming to sign the Dhaka Elevated Expressway deal by the first week of January, said Communications Minister Syed Abul Hossain yesterday.
The construction of the expressway would start within three months of the signing and will finish within the tenure of the incumbent government, said the minister at a press conference at the Bridge Division.
As for the latest development, the Bangladesh Bridge Authority and the tender evaluation team will sit with the winning bidder of Dhaka elevated expressway tomorrow to finalise financial terms.
Mosharraf Hossain Bhuiyan, secretary to Bangladesh Bridge Authority, said following a meeting yesterday (Saturday) they asked the tender evaluation team, Infrastructure Investment Facilitation Centre (IIFC) and Bangladesh University of Engineering and Technology (Buet) to work on the bidder's financial offers for further negotiations.
“We look forward to complete the negotiation process by December 21 and then place the project for approval to the Cabinet Purchase Committee,” said Bhuiyan, adding, “The annual concession fee will top the negotiation agendas.”
The government expected a concession fee of $25 million per year in the Request for Proposal (RFP), to which the winning bidder Ital-Thai Development Company has not made any offer yet.
Besides, the company asked 27 percent of the total construction cost, that is Tk 8,703 crore, from Public Private Partnership (PPP) fund as the Viability Gap Fund (VGF).
Porf Md Shamsul Haque, a member of the tender evaluation committee, said they would ask for detailed breakdown of the estimated construction cost per kilometre, which now stands at $30 million.
While the IIFC analyses the terms and conditions of the financial offers, Buet team will carry out technical analysis on the cost per km and the traffic flow projected by the bidder.
The concessionaire has to pay the government 37.5 percent of its income as corporate tax, 15 percent VAT on each transaction, and 11 percent customs duty on imported materials for the concession period of 25 years, until they handover the expressway to the government.
In the press briefing, the communications minister and Prof Jamilur Reza Chowdhury, convener of the seven-member tender evaluation committee, ruled out the allegations regarding the selection of Italy-Thai joint venture firm.
“We work independently; free from any pressure or influence from any quarters,” said Prof Jamilur, adding that everything was being done fairly.