Karnaphuli tunnel: Tk 4.5b 'seven-star' guesthouse is of no use 

The cost of the Bangabandhu Tunnel under the Karnaphuli River in Chattogram rose significantly due to a luxurious guesthouse under the project. The seven-star residential facility is now lying unused, while the tunnel is counting significant losses on a daily basis. 

The guesthouse includes a 5,000-square-foot bungalow with six rooms, a swimming pool, and modern furnishings. According to the bridges division sources, the facility was constructed with consideration of potential visits of ousted prime minister Sheikh Hasina. Besides, a total of 30 rest houses were constructed there. 

A whopping Tk 4.5 billion was spent to construct the facilities, but those did not begin operation due to manpower shortage. 

The tunnel, which is named as Bangabandhu Sheikh Mujibur Rahman Tunnel, was opened to traffic in October 2023. Since then, it has been struggling with revenue shortfalls as its usage lags behind projections.

Its monthly toll collection averages at Tk 25 million, while the monthly maintenance cost is nearly Tk 115 million. It indicates a monthly deficit of more than Tk 9 million. 

Now, the interim government has found itself in a tight spot while dealing with the structure. Road transport and bridges division adviser Fouzul Kabir Khan took multiple initiatives to lessen the losses. 

While talking to Prothom Alo, he said the guesthouse under the tunnel project is of seven-star standard. The project itself was undertaken without any feasibility study, and its cost was raised through odd inclusions. 

The tunnel project was initially estimated to cost Tk 84.46 billion, but it was revised up in three phases to Tk 106.86 billion. 

The guesthouse is located in the project’s service area. It was incorporated in the project at its middle point of implementation. Under the service area, different sorts of structures have been constructed on nearly 72 acres of land at the south point of the tunnel in the Anwara area. It is close to the sea beach. 

Apart from the rest houses and bungalows, the area features a replica of the tunnel, a conference center, a health center, a helipad, a mosque, police and fire stations, and a museum highlighting Chattogram’s heritage and Bangabandhu’s legacy. An air conditioning system with a capacity of 1,182 tons has been installed across these facilities.

According to bridges division sources, then road transport and bridges minister Obaidul Quader was the man behind the inclusion of the guesthouse to the project, and the prime minister’s office endorsed it. He could not be reached for comment as he is in hiding. 

The tourism corporation constructed a state-of-the-art tourism complex on 13 acres of land near the Parki sea beach in Anwara, at a cost of Tk 790 million. It is just 1.5 kilometers away from the Karnaphuli tunnel guest house. 

The project was undertaken in December 2019 and was supposed to end in December 2022. Till date, around 80 per cent of works have been completed. The facility features 10 single cottages, four duplex cottages, a three-storied multipurpose building, a lake, and a playground for children. 

Insiders said despite having the tourism complex at a short distance, it was completely unnecessary to construct a guesthouse under the tunnel project. 

Mainul Islam, an economics department professor of Chittagong University, said the Karnaphuli tunnel will not be used at its full capacity in the next five to seven years. During this time, the tolls will not meet even 25 per cent of the maintenance cost. 

Also, there was no necessity to construct the high-cost guesthouse under the project at the eleventh hour, he said, adding these activities were intended to loot money on pretext of project costs. 

The fallen Awami League government took the tunnel project, with an aim to develop Chattogram to a ‘one city, two town’ model, like the Chinese city of China. The tunnel connected Patenga and Anwara upazilas in Chattogram.  

In November 2015, the Executive Committee of the National Economic Council approved the multi-lane road tunnel project at a cost of Tk 84.46 billion and the project duration was set for December 2021.

However, delays in signing loan agreements with China, coupled with additional expenses for land acquisition, customs duties, and shifting utility lines, led to multiple revisions of the budget. The cost was increased to Tk 103.74 billion in 2021. 

According to the bridges division sources, the project cost was increased in the second phase, after incorporation of the plan to build the guesthouse. Lastly, the cost was hiked by Tk 3.15 billion in January 2023. 

In addition to the high exchange rate of foreign currency, expenditures on equipment and furnishings for the guesthouse are key reasons behind the rise in project cost. 

The final cost of the project stood at Tk 106.89 billion.