The Karnaphuli Tunnel, the first road tunnel beneath a river in Bangladesh and in fact the entire South Asian region, was built at a total cost of Tk 10,255.29 crore, Road Transport and Bridges Minister Shaikh Rabiul Alam told Parliament on Wednesday.
He was responding to a question from BNP MP Sarwar Jamal Nizam of Chattogram-13 on the expenditure incurred on the tunnel and the benefits and losses arising from its construction.
The minister said the tunnel was built with the expectation that it would directly connect Chattogram city with the vast areas on the southern bank of the Karnaphuli River, opening up new opportunities for regional economic activity, industrialisation, tourism and trade.
He said the project was also intended to facilitate planned urbanisation in southern Chattogram under the “One City and Two Towns” model, similar to Shanghai, integrating Anwara, Karnaphuli and adjoining areas with Chattogram metropolitan city.
The government had expected the tunnel to accelerate planned urbanisation, housing development and expansion of modern civic facilities in southern Chattogram.
“However, the investment potentials already identified could not be realised in time for various reasons,” the minister said.
He said the government had now taken various initiatives to create new opportunities for industrialisation and investment around the tunnel, seeking to develop it not merely as a transport infrastructure project but as an important foundation for the economic development, industrialisation, tourism and balanced regional development of southern Chattogram.
As part of the initiatives, the ECNEC approved the “Supporting Infrastructure Project for Chinese Economic and Industrial Zone (CEIZ)” on June 16, 2026, and the project was inaugurated on July 28.
The minister said implementation of the project would help increase domestic and foreign investment, establish new industries and create substantial employment opportunities.
He said the continued operation of the Korean EPZ in Chattogram also created scope for further expansion of industrial and commercial activities in the area.
Increased industrialisation and investment would significantly raise traffic through the Karnaphuli Tunnel, potentially boosting toll revenue, he said.
The government has also undertaken projects to widen the Anwara-Barkal-Gachhbari road and upgrade the Anwara-Banshkhali-Taitong-Pekua-Badarkhali-Chakaria (Eidmoni) regional highway to the required standard and width.
Once implemented, these road projects would allow buses and other vehicles travelling on the Dhaka-Chattogram-Cox’s Bazar route to use the tunnel and reach their destinations in less time, according to the minister.
This, he said, would reduce pressure and congestion on roads in Chattogram city while making communication between southern Chattogram and other parts of the country easier and more efficient.
The initiatives would also create opportunities to expand Chattogram Port operations around the Anwara end of the tunnel, he said.
According to the minister, expansion and greater efficiency of port operations would facilitate faster and more efficient transportation of goods and boost commercial activities.
In the longer term, these developments could contribute to economic growth, business expansion and increased investment, accelerating the overall economic development of the Chattogram region.
The tunnel could also play an important role in transforming southern Chattogram into a potential economic and industrial zone, increasing local income and employment opportunities and improving living standards, he said.
The minister said the tunnel was also facilitating improved connectivity between Chattogram and southern Chattogram and important destinations including Matarbari Deep Sea Port, Cox’s Bazar’s tourism areas and other parts of the south-eastern region.
He said opportunities had emerged for supporting infrastructure, industrial and business activities to develop around the tunnel, creating prospects for direct and indirect employment and broader economic activity.
The tunnel had also opened up new possibilities for the development of tourism around Parki Sea Beach in Anwara, he added.
“Above all, it is necessary to ensure effective utilisation of the full economic potential of the Karnaphuli Tunnel rather than considering it merely as a connectivity infrastructure project,” the minister said.
He said if industrialisation, investment, tourism, port-dependent economic activities and regional connectivity could be developed in an integrated manner around the tunnel, it could play an important role in the long term as a foundation for the economic development, industrialisation and tourism expansion of southern Chattogram and balanced regional development.
The minister, however, said various questions had already been raised over different aspects of the construction and implementation of the project and the Anti-Corruption Commission (ACC) was conducting an investigation into the matter.