The costly Karnaphuli Tunnel, constructed during the tenure of the ousted Awami League government, has been operating at a loss since its opening. The toll revenue generated from vehicles is not even enough to cover the tunnel’s operating expenses. To meet the shortfall, the Bangladesh Bridge Authority (BBA)—the implementing agency—has to spend a significant amount every year. The authority has projected that this loss-making trend will continue in the current 2025–26 fiscal year as well. According to its estimates, the tunnel could incur a loss of around BDT 1.69 billion this year.
Built beneath the Karnaphuli River, the tunnel requires artificial oxygen and lighting systems inside, along with round-the-clock emergency safety and overall security arrangements, making it extremely expensive to operate. A feasibility study carried out before construction revealed that the tunnel would require two levels of maintenance. One is routine maintenance, including electricity supply, carbon dioxide extraction, oxygen supply, and other daily operations. The second involves major maintenance every five years. On top of that are expenses related to staff salaries, energy bills, and other overheads. In contrast, the main source of income is toll collection from vehicles passing through the tunnel.
The tunnel is operated by the Chinese multinational contractor China Communication Construction Company Limited (CCCC), which signed a five-year contract with the Bangladesh Bridge Authority. The contract is worth BDT 9.84 billion. The tunnel was inaugurated on October 28 of 2023.
According to data from the Bangladesh Bridge Authority (BBA), operating and maintenance costs for the Karnaphuli tunnel in FY 2023–24 totaled around BDT 1.74 billion. During that year, BDT 8.7 million worth of tolls were waived. The total operating cost, therefore, crossed BDT 1.75 billion, while the toll revenue collected stood at mere BDT 284 million. That means the tunnel suffered a loss of nearly BDT 1.47 billion in its first year of operation.
In the recently concluded FY 2024–25, maintenance and operational costs rose to over BDT 2.22 billion. Another BDT 7.8 million was waived in tolls, while road and highway repairs outside the tunnel cost an additional BDT 25 million. On top of that, BDT 9 million was spent on sanitation and water supply systems. In total, over BDT 2.26 billion was spent. Against that, toll revenue amounted to just BDT 385.8 million, leaving the Karnaphuli Tunnel with an estimated loss of around BDT 1.89 billion in that fiscal year.
The Karnaphuli Tunnel, built with Chinese loans at a cost of BDT 106.89 billion, was projected to handle an average of 28,305 vehicles per day by 2025, according to the feasibility study. However, the actual traffic volume has fallen significantly short. Data from China Communication Construction Company Limited shows that in April, the tunnel saw an average daily traffic of just 4,015 vehicles.
Since its launch, the tunnel has been incurring losses for two consecutive fiscal years. The trend continues in the current fiscal as well. The Bangladesh Bridge Authority has already anticipated a major financial shortfall from the tunnel, projecting a loss of approximately BDT 1.7 billion for FY 2025–26. As per the forecast, the tunnel is expected to generate BDT 394.6 million in toll revenue this year, while operating and maintenance costs are estimated at BDT 2.08 billion.
Mohammad Abdur Rouf, Secretary of the Bridges Division, said the government is working to make the tunnel financially viable as soon as possible by cutting costs and increasing revenue. He told Bonik Barta, “Since traffic is low at the moment, we’ve reduced the number of staff managing the tunnel. A high-level committee from the Bridge Authority has minimized operating and maintenance costs wherever possible. So far, we’ve managed to cut nearly BDT 1 billion in expenses.”
Efforts are also underway to boost traffic through the tunnel. Abdur Rouf noted, “We’re working to establish a direct road link between Dhaka and Cox’s Bazar via the tunnel to reduce losses. The Roads and Highways Department has taken the initiative to build a connecting road between Anwara, on the southern end of the Karnaphuli, and Cox’s Bazar. Once completed, vehicles from Patenga will be able to travel through the tunnel directly onto this road, creating a seamless route between Dhaka and Cox’s Bazar. This will allow vehicles to bypass Chattogram city, cutting travel time significantly. As traffic increases, so will revenue.”
He also highlighted broader development plans surrounding the tunnel. “Chattogram Development Authority is implementing a housing project centering the tunnel, while the Chattogram Port Authority is also planning infrastructure in the area. The government is committed to making the tunnel profitable as quickly as possible,” he added.