Govt now mulls privatising Tk450cr unused Karnaphuli Tunnel rest house

• Karnaphuli Tunnel project proven unsuccessful, with govt losing over Tk26 lakh daily
• To cover the loss, govt to lease Tk450cr resort built under the project to private sector
• The resort remains unused since its completion in June
• It includes 30 bungalows, including a VVIP one for former PM Sheikh Hasina
• Officials say tenders will be floated soon to lease it to a tourism sector company

The government plans to lease the Tk450 crore resort or rest house in the Karnaphuli Tunnel service area to the private sector, as it has remained unused since its completion in June this year.

The Karnaphuli Tunnel has turned out to be a failed project, as its costs outweigh its earnings. The government is losing over Tk26 lakh daily for the tunnel, according to the Bangladesh Bridge Authority.

"We plan to hand over the Service Area Resort to the private sector. Tenders will be invited shortly. Leasing these bungalows to a tourism-focused organisation could help minimise the government's losses," said Abul Kalam Azad, superintending engineer at the tunnel's Patenga site office, which is operated by the Bridge Authority.

The resort, part of the Tk10,690 crore tunnel project, includes 30 bungalows, one of which is a VVIP facility designed for former prime minister Sheikh Hasina's vacation, according to the Bridges Division.

A senior official of the Bridges Division, speaking anonymously, told TBS, "The VVIP bungalow was built with guidelines of the former prime minister. It was intended for her or top ministerial-level guests. Other bungalows were built for the general public. However, Hasina fled the country in early August before the inauguration of the resort."

Civil society and locals view the entire project as a means of plundering state funds in the guise of development.

Mainul Islam, a retired economics professor at Chittagong University, told TBS, "The cost of this tunnel cannot be recovered in the next 8-10 years. But if the Marine Drive highway in Cox's Bazar is extended to Chattogram city, the tunnel could be useful in the future. But the resort is completely unnecessary and seems designed to facilitate the misappropriation of funds."

During a visit to the resort on December 3, TBS observed members of the Ansar Battalion guarding the facilities, including the VVIP bungalow. Several workers were also seen conducting maintenance work on the bungalows. A total of 80 Ansar personnel were deployed to secure the establishment.

On condition of anonymity, Ansar personnel and maintenance workers said that the bungalows are equipped with state-of-the-art furniture and amenities.

While senior officials of the Bridge Authority and other important state officials and guests occasionally visit, the entire rest house area remains nearly empty.

There are no clear instructions yet on when it will be opened to the public, and no one is currently allowed to enter without permission from the Bridge Authority, they said.

According to locals, around 200 residents in the project area previously earned their livelihood through fishing and livestock farming. However, due to this project, they have been forced to vacate the area and seek alternative sources of income.

Karnaphuli Tunnel – a white elephant

The tunnel runs beneath the Karnaphuli River in southeastern Chattogram. Its northern end is in Patenga, near Chattogram port and Shah Amanat airport, while the southern end is in Anwara upazila, connecting to southern Chattogram.

Despite the hefty Tk10,690 crore construction cost, which includes a foreign loan of $60.77 million, the tunnel, opened in 2023, now sees average daily traffic of fewer than 4,000 vehicles – less than one-fourth of the projections made earlier.

This has resulted in a daily revenue of around Tk10.50 lakh, against an operational cost of Tk37.44 lakh, meaning the toll income covers less than one-third of the expenses.

According to the Bridge Authority, which operates the tunnel, over 14.97 lakh vehicles have used the tunnel from its inauguration on 28 October last year to 17 November this year, generating a total revenue of Tk40.9 crore.

However, the feasibility study, conducted by China Communications Construction Company (CCCC) in 2013, projected an initial opening in 2017 with an estimated daily traffic of 17,374 vehicles, increasing to 20,719 by 2020 and 28,305 by 2025.

Moreover, concerns have been raised regarding a potential conflict of interest, as CCCC served as both the study's conductor and the tunnel's constructor.

Experts believe that implementing such an overly ambitious and flawed project without proper feasibility studies has left the government burdened with debt and excessive costs.

Dr Shamsul Hoque, a transportation expert and professor at the Bangladesh University of Engineering and Technology (Buet), told TBS, "A much cheaper alternative would have been to construct a suspension bridge. Japan, China and South Korea have built suspension bridges over two kilometres long. Yet we lag behind. Instead, the costly and less efficient project was promoted as Southeast Asia's first underwater tunnel."