MEGA PROJECT 2018

PADMA BRIDGE: PROGRESS SATISFACTORY

Originally planned to be completed by December 2013, the much-troubled Padma Bridge Project is now making good progress and it is expected to be completed by 2018.

According to official reports presented to the Prime Minister on April 27, the project marked 65 percent progress in constructing approach roads at Jajira, 73 percent at Mawa, main bridge and river training, 21 percent. Thirty-four percent progress has been made in bridge financing.

The project that saw several cost escalations is now being implemented at a hefty cost of $3.7 b. This cost jumped from $2.9 b at 2010—when the World Bank had agreed to fund it. After the WB withdrew its promise, the government began implementing the project from 2014 using its own resources.

ROOPPUR NUCLEAR POWER: PROGRESS SATISFACTORY

The 2400 megawatt Rooppur nuclear power project has made significant progress as it has initialled a $12.65 b financing agreement with Russia last December.

All preparatory construction works will be finished within this year, while certain field level works have been fully completed, a well-placed source said.

“We expect the financial agreement to be finalized by May, because we want to make advance payment from the next budget for equipment that takes around three years to construct,” he said.

Bangladesh will hold a discussion with Russia over the state credit agreement on May 16.

Russian state company Rosatom began working at Rooppur in mid 2013 and is currently undertaking a techno-feasibility study under a half-a billion dollar loan.

Rosatom's sister concern Atomenergoproekt—which is undertaking the study has recently floated a tender for engineering survey, environmental monitoring and development of project documents for the Rooppur NPP site.

The government expects the construction of the nuclear reactor to start early 2017 and complete by 2020. The plant's trial operation target is in the following year but officials say the plant will begin operation from 2022.

Real estate developer Palm Hills Development (PHD) and the New Urban Communities Authority (NUCA) will launch a 12.6 million square meter project in 6 October City, PHD said Sunday. 

“Located in West Cairo with a launch schedule in 2018, the mega project will be 88 percent residential and 12 percent commercial,” PHD said in a statement to the Egyptian Exchange. 

While Palm Hills will be responsible for financing, construction, development, marketing, sales and internal infrastructure of the project, NUCA will contribute the land and external infrastructure. 

Based on the agreement, NUCA will have a revenue share of 26 percent and in-kind payment of up to 371,000 square meters of residential area and 50,000 square meters of commercial area. 

“The new project is considered to be the largest single piece of land acquired by PHD,” company chairman Yasseen Mansour said in the statement. 

“The project brought the PHD total land bank to 41 million square meters, making the company the largest real estate developer in terms of sales and land bank,” he said. 

“With regards to prices, the starting price of units in the project is expected to be LE 12,000 ($0.6) per square meter, subject to 10 percent increase on an annual basis for six years and by 5 percent annually for the following five years,” Pharos Holding said in a research note Sunday. 

“We assume 2018 construction and infrastructure costs to be LE 300/sqm and LE750/sqm, respectively, which rise by 5 percent annually,” the report noted.