Dhaka Elevated Expressway: HC clears way for share transfer to Chinese firm
However, the court said the dispute between the Thai and Chinese companies regarding the liabilities and receivables will be settled by the arbitration court of Singapore.
The High Court has lifted its stay order on the transfer of Italian-Thai company's shares in Dhaka Elevated Expressway to China's Sinohydro Corporation.
A single bench of Justice Khizir Ahmed Choudhury passed the order today (13 May).
However, the court said the dispute between the Thai and Chinese companies regarding the liabilities and receivables will be settled by the arbitration court of Singapore.
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The Dhaka Elevated Expressway project is being implemented by Thailand-based company Italian-Thai, China's Shandong International and Sinohydro Corporation, with the Bangladesh Bridge Authority as the project's executive body.
The share of three companies in the expressway is 51%, 34% and 15%, respectively.
The government's priority project was supposed to be completed by this year. However, a conflict between the contractors has slowed down the construction work.
Italian-Thai operates the expressway as it has the largest share in it. Sinohydro demanded their shares after the Thai company could not pay the instalments of the bank loans.
The conflicts went to the court in Bangladesh amid an ongoing arbitration in Singapore.
In view of the Italian-Thai company's application, the court issued a stay order on the transfer of the shares as demanded by Sinohydro.
Due to the problems, two Chinese banks stopped providing loans for the project, bringing the project work almost to a halt.
After the HC's ruling, lawyers representing the Chinese company said the problem would be resolved and the project work would resume in full swing.
