Revenue of 26 RHD bridges exceed costs, yet toll remains

The Meghna and the Meghna-Gomti bridges of the Dhaka-Chattogram highway were constructed at the cost of about Tk 3 billion, but the government earned about Tk 370 billion in toll from these two bridges as of August this year. These bridges were opened to traffic three decades ago and toll collection is still on.

Toll is being collected at 26 bridges, mostly medium-sized, across the country despite the earnings already exceeding construction costs by several fold, according to data of the Roads and Highways Department (RHD) until August.

Sometimes people demonstrate against toll, but the Awami League government, ousted by the student-people mass uprising, showed no compassion. Rather, they decided in 2014 to collect toll from all bridges that exceeded 200 meters in length.

Toll contributes to a rising vehicle fare and cargo transportation costs. Like indirect tax, the toll is collected equally from everyone irrespective of their economic condition. The Awami League government could not collect direct taxes like income tax from rich and affluent people. Public spending also increased due to huge expenses and many unnecessary projects. But pressure falls on people to mitigate these costs. Thus power, gas and water tariff, fuel and fertiliser prices were hiked. In 2013, Sheikh Hasina also instructed to collect toll from all potential highways.

Another side of the toll is that people of the ruling party secure the lease of toll collection. Contractors allegedly benefited from toll collection. That is why toll is still in place on old and relatively small bridges.

Transport expert and professor of civil engineering at Bangladesh University of Engineering and Technology (BUET) Shamsul Hoque told Prothom Alo construction costs of infrastructure is very high in Bangladesh because of corruption. That is why imposing higher toll on infrastructure increases living expenses.

Many countries do not impose toll considering the socioeconomic outcome because the toll is a type of indirect tax. However, toll collection should be stopped on old bridges, he added.

Currently, toll is realised from 67 medium and big bridges under RHD. A Prothom Alo investigation found revenue from toll far exceeded the costs at 26 bridges of RHD but toll collection still remains in place. At present, RHD earns a little over Tk 10 billion from toll collection every year while spending about Tk 2 billion for contractors or lessees.

The government formulated a guideline in 2014 to collect toll from roadways, bridges, tunnels, expressways and ferries operated under the RHD. The guideline states all bridges exceeding 200 meters in length will be subject to toll collection. Besides, toll will be collected for at least a year, where bridges with a length of less than 200 meters have been constructed by closing ferry services. The guideline also fixes a base toll of Tk 100- 400 varying on the classification of the roads. Toll amount increases based on the classification of vehicles and the length of the bridge, but the guideline mentions no time frame for toll collection from a bridge, a roadway or a structure.

Officials at RHD said the government collects toll to bear maintenance the cost of roadways and bridges. However, it is still unclear how the maintenance cost is adjusted with the revenue.

RHD chief engineer Syed Moinul Hasan told Prothom Alo toll is collected on roads and bridges across the country. Toll is imposed on bridges as the government wants to increase revenue from various sources other than taxes.

The target of toll collection is Tk 20 billion in the 2024-25 fiscal. So, they have no way other than raising the toll coverage. However, the government can close toll collection on several roadways and bridges if they want to do so, he added.

Funded by Japan, toll collection opened on the Meghna bridge in 1990 and on the Meghna-Gomti bridge in 1994. Earnings from these bridges stood at Tk 368.20 billion, which is 123 times more than the cost.

The toll on these bridges increased from time to time. Currently, Tk 10 million is collected in toll from these two bridges per day and Tk 1.5 million to 2 million was spent for toll collectors.

Two new bridges were constructed next to the two old bridges in May 2019 at a cost was Tk 37 billion excluding land acquisition and other work. Japan also financed the projects. Toll, however, is collected together from old and new bridges. RHD officials said the cost was Tk 40 billion for the old and the new ones combined, but the toll has been collected far more than this.

A truck pays Tk 400 to cross the Meghna and Gomti bridges, a minibus Tk 150 and an auto-rickshaw pays Tk 20. RHD officials said whatever happened in the past toll must remain on the new bridge. It will not be right to lift the toll entirely, but the government can decrease the toll amount and that will be effective for goods carrying vehicles and public transport since it will reduce freight cost and general people’s spending.

The Language Martyr Rafique Bridge, locally known as Dhalla Bridge, was constructed in 1996 at a cost of about Tk 160 million and toll collection began in 2000. To date, Tk 485 million was realised in toll. Locals often demonstrated demanding the withdrawal of toll. Former road transport minister Obaidul Quader announced the lifting of tolls on two-and three-wheelers, but it has not been implemented yet.

Protesters vandalised and torched the toll plaza on 12 September after the fall of the government and toll collection stopped since then.

RDH is still collecting toll on the Mohonpur bridge, which is a little over 200 meters long, in Dinajpur despite amassing 26 times more than the construction cost. The toll amount varies from Tk 10 to Tk 100. Locals demonstrated from time to time, even summited a memorandum demanding the withdrawal of toll, but the collection is still on.

Toll collection opened on the Shah Amanat Bridge, known as the Third Karnaphuli bridge, in 2010. Funded by Kuwait, the bridge, which is about 1 km long, was constructed at a cost of Tk 3.80 billion. As of August this year, more than Tk 6.65 million was realised in toll from this bridge. A large truck pays Tk 300 and a big bus pays Tk 155 to cross the bridge.

Several medium-sized bridges were constructed on foreign grants and earnings from those have already surpassed the construction expenditures. The Shambhuganj bridge was built on Chinese grants in Mymensingh at a cost of Tk 430 million and opened for traffic in 1992. As of August this year, the RHD earned Tk 1.61 billion from it.

Locals said people from four districts – Mymensingh, Kishoreganj, Netrokona and Sherpur – use this bridge. Six thousand to 7,000 vehicles cross the bridge per day. A large truck pays Tk 135 and a big-sized bus pays Tk 65 to cross the bridge while the toll for an auto-rickshaw is Tk 15 and a power tiller Tk 60. Auto-rickshaw drivers claimed they have to spend a big portion of their daily earnings on toll as they must pay each time they cross the bridge.

According to the RHD sources, a major portion of the contractors and lessees appointed during the 15 years of Awami League were local leaders of the party, their family members and relatives. In some cases, people who had the blessings of then-ministers, lawmakers and influential leaders got the toll collection contract. Many lessees fled after the fall of the Awami League government on 5 August. Allegations also arose from time to time over various irregularities including embezzling and showing less toll money in collusion with influential lessees and dishonest officials of RHD.

An investigation found Shamim Enterprise Limited (SEL) is involved in toll collection in one of four big bridges. Aminul Haque Shamim, who is a vice president of Awami League, is the owner of SEL. He contested the last parliamentary election as an independent candidate but lost. His younger brother Ekramul Haque Titu was elected mayor of the Maymensingh City Corporation on the Awami League ticket twice. SEL is also involved in road and bridge constriction of the RHD.

UDC Construction is involved in the toll collection of three big bridges and a road. According to the RHD sources, UDC Construction also rose to prominence with the help of SEL as the former was the associate of the latter in numerous projects including Moghbazar flyover, Dhaka bypass road construction, toll collection in Bangabandhu bridge and construction of bus rapid transit from to Dhaka airport to Gazipur. At one stage, several people from the constituency of the former rod transport minister Obaidul Quader joined in senior positions at UDC Construction and the company owner Kalam Hossain became close to Obaidul Quader through them.

Computer Network System (CNS) is responsible for toll collection in three big bridges and this company has ties to former law minister Anisul Hue, according to sources.

Contractor firm Mahfuz Khan Limited collects tolls in two big bridges of Barishal regions and they have ties to Awami League leaders Abul Hasanat Abdullah and his son and former Barisahl city mayor Serniabat Sadiq Abdullah.

HN Bricks collects tolls on a bridge. Its owner Lutfar Rahman is involved with the Awami League and he contested the last parliament election independently.

Indian company VaaaN Infra Private Limited realises tolls on five bridges and a road as an associate of the Bangladeshi company.

The cost of the Padma bridge construction was estimated at Tk 100 billion at the beginning, and the budget was revised to Tk 311.05 billion at the end. The expenditure of Bangabandhu Sheikh Mujibur Rahman Expressway was estimated at Tk 40 billion at the beginning, and the expenditure rose to Tk 110 billion at the end of the project.

The Dhaka-Barishal highway is an example of the rising cost because of bridge and roadway toll. A bus, which leaves Dhaka for Barishal, pays Tk 260 in toll to cross the Mayor Mohammad Hanif flyover in the capital, then Tk 495 on the expressway, Tk 2,000 on the Padma bridge and Tk 200 in two Doarika- Shikarpur bridges. Altogether, Tk 100 is added to the fare of each passenger.

Alam Hossain travels on the Dhaka-Barishal route regularly. He told Prothom Alo, “I wish I would go home regularly after the Padma bridge opened, but bus fares increased significantly. Besides, there is huge traffic congestion on the entry and exit points of Dhaka.”

The two Doarika- Shikarpur bridges opened on the Dhaka-Barisahl route in 2003. Toll collection from these bridges already doubled the construction cost. Yet toll collection still is in place.

Selim Raihan, professor of economics at Dhaka University and executive director of the South Asian Network on Economic Modelling (SANEM), told Prothom Alo toll can be collected on a small scale from the bridges that require maintenance, but toll amount must be less than that of collection period of construction cost.

The remaining bridges can be toll-free, he said adding, that the government should collect additional taxes from the wealthy and bring taxable people under the tax net.

This report appeared in the print and online editions of Prothom Alo and has been rewritten in English by Hasanul Banna