Dhaka By-Pass Road

Providing advisory services for the construction of a major highway in Bangladesh, as part of a Public-Private Partnership

Location

  • Dhaka, Dhaka District, Bangladesh

Sector

  • Roads and Highways
  • Advisory Services
  • Program and Project Management
  • (View all)

Service

  • Public Private Partnerships (PPP)
  • Transport Planning
  • Congestion Management
  • (View all)

Client

  • Government of Bangladesh

Project Status

  • Ongoing


Helping Improve the Transportation Network in Dhaka

The Government of Bangladesh engaged WSP to provide transaction advisory services for the construction of a major highway via an alternative delivery model (public-private partnership/P3). With a capital cost of approximately USD 500M, the project involved upgrading the existing Joydevpur-Debogram Bhulta-Madanpur Road (N105) from two-lanes to four-lanes. It is contemplated to include a controlled access toll road, and a two-lane service road, along 50 km of highway to the east of Dhaka. The Dhaka By-Pass Road would provide for a major arterial connection between the industrial zone north and northeast of Dhaka, with the port connection to Chittagong in the south, while providing a link with national highways N1, N2, N3, and N4.

WSP provided advisory services in determining the project’s feasibility and development, and following the project’s approval, will continue to develop and implement the P3 procurement process. The first phase, completed in August 2014, involved examining the highway’s technical, social, environmental, economic, financial, and commercial viability. The second phase involves leading the procurement process from inception to implementation; this includes developing procurement documents (RFQ and RFP) and market engagement, arranging the project’s management and governance structures, obtaining procurement support, commercial and financial support, and early operations support, and building client capacity and knowledge transfer.

Successfully Overcoming Challenges

  • Developing a commercial structure that would lead to a bankable project in a developing country

  • Working with the Government of Bangladesh and understanding local challenges

  • Working with international development agencies and banks to secure funding

D

The project involved upgrading the existing Joydevpur-Debogram Bhulta-Madanpur Road (N105) from two-lanes to four-lanes.

Field-proven Methodology

Acting as trusted advisors, we are committed to protect our client’s best interests throughout the process:

  • First Phase – Developed a feasibility study to examine the highway’s technical, social, environmental, financial, and commercial viability.

  • Second Phase – Leading the procurement process from inception to implementation; this includes developing procurement documents (RFQ and RFP) and market engagement, arranging the project’s management and governance structures; obtaining procurement support, commercial and financial support and early operations support; and building client capacity and knowledge transfer.

Our team delivered the following:

  • Feasibility Study to determine procurement options, public sector comparator and demonstration of affordability

  • Value for Money Assessment to determine the cost savings from delivery through P3 procurement

  • Commercial Structure to develop bankable P3 project

  • Technical Study to determine costs, design parameters, environmental and social impacts

  • Economic Business Case

  • Transaction Advisory Services and procurement plan