The government awarded the upgrading works of the Dhaka-Mymensingh Highway into an expressway to the Korea Overseas Infrastructure and Urban Development, said finance minister AHM Mustafa Kamal on Wednesday.
The approval was given in a virtual meeting of the cabinet committee on economic affairs in line with the public, private and partnership policy.
Mustafa Kamal who chaired the meeting said that the estimated cost of the main structure was Tk 3,353 crore to be invested by the Korean company.
He also said the government would spend around Tk 900 crore for rehabilitation and relocation of structures on both sides of the road.
The KIND, an organisation established in June 2018 by the government of the Republic of Korea, supports global Public-Private Partnership business.
In April, 2019, the KIND signed a memorandum of understanding with the local Public Private Partnership Authority that aimed at funding the road and highways projects.
The RHD wants to turn the 87-kilometre of the highway into the expressway as numerous intersections, schools and markets slowed down traffic on the four-lane highway that was upgraded from two lanes at a cost of about Tk 1,800 between 2011 and 2016.
According to the RHD officials, the proposed expressway will have eight lanes including main four lanes, two emergency and two service lanes.
The KIND has 10 shareholders, including the Korean government, the Korea Land and Housing, the Construction Guarantee, the Korea Eximbank, the Korean Railroad Corporation and the Korea Expressway Corporation.
According to the KIND’s newsletter released in July, the company signed an agreement with a company in Poland on May 31 on an infrastructure project worth about $ 1.8 billion, the largest investment for the KIND since its existence.
In Bangladesh, the KIND is involved with the feasibility study of the Chittagong Bay Terminal Project, said the newsletter.
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