The Asian Development Bank (ADB) has successfully mobilized $261 million in private sector capital for the Rampura Amulia Demra Expressway, a four-lane, 13.5 km project serving as a public-private partnership (PPP) in Bangladesh. By easing traffic congestion and improving connectivity between Dhaka and other major cities, this initiative promises significant benefits.
Funding for the project comes from a $193 million senior loan provided by the Asian Infrastructure Investment Bank, Bank of China, DBS Bank Limited, and Infrastructure Development Company Limited. The remaining $68 million comes from sponsors as equity contributions.
ADB played a crucial role in project structuring, negotiations, tender execution, and provided support for commercial award and financial closure. This expressway will enable quicker access to destinations, benefiting commuters in eastern and southeastern districts of Bangladesh, including Chattogram, Narayanganj, and Sylhet.
The Rampura Amulia Demra PPP project was developed under an availability payment mechanism with partial revenue linked to the US dollar and taka exchange rate movements. ADB’s involvement has paved the way for both availability payment and minimum revenue guarantee mechanisms for future private sector investments in Bangladesh’s infrastructure sector.
As part of their programmatic approach to developing road PPPs, ADB has successfully completed the second financial closure of a PPP transaction as a transaction advisor in Bangladesh. They are currently advising the government on the Joydebpur Mymensingh Expressway PPP project, which will improve connectivity to 10 special economic zones.
The Rampura Amulia Demra Expressway will be managed by a consortium comprising China Communications Construction Company Limited and China Road and Bridge Corporation, handling design, construction, financing, operation, and maintenance during a 25-year concession period.
