Published: 12:34 AM, 03 July 2026
Leasing Out On Cards for Seven Star Rest Houses Around Karnaphuli Tunnel
A luxurious government-built rest house and tourism complex beside the Karnaphuli Tunnel has emerged as one of Bangladesh's most controversial infrastructure investments, with critics questioning whether hundreds of millions of dollars in public money have been wisely spent. While the tunnel itself was inaugurated in October 2023 as South Asia's first underwater road tunnel, the adjacent high-end accommodation facilities-including VVIP bungalows, guesthouses, swimming pools, landscaped gardens, and resort-style amenities-have remained largely unused, adding to mounting financial losses.
The Karnaphuli Tunnel project was conceived as a landmark transport initiative intended to transform connectivity between Chattogram and the southern bank of the Karnaphuli River. However, attention has increasingly shifted from the engineering achievement to the costly service area constructed alongside it.
According to official reports, approximately Tk 4.5 billion was spent constructing the luxury residential complex. At an exchange rate of roughly Tk 122 per US dollar, this represents an investment of approximately USD 37 million. The complex includes around 30 bungalows, a VVIP residence, guesthouses, modern recreational facilities, swimming pools, and landscaped surroundings designed to accommodate senior government officials and distinguished guests.
Despite its impressive appearance, the complex has remained virtually idle since completion. Reports indicate that a shortage of personnel and the absence of a clear operational strategy have prevented the facilities from opening to the public on a commercial basis. As a result, expensive buildings equipped with modern furniture and recreational amenities continue to generate maintenance costs without producing significant revenue.
The financial challenges extend beyond the resort itself. The Karnaphuli Tunnel has experienced traffic volumes well below projections prepared during the feasibility stage. Initial studies anticipated that more than 17,000 vehicles would use the tunnel daily, with traffic expected to exceed 28,000 vehicles by 2025. In reality, average daily traffic has remained closer to 3,000 to 4,000 vehicles, leaving toll income far below expectations.
Government figures indicate that daily operating and maintenance costs substantially exceed toll collections. Estimates published by Bangladeshi media suggest daily financial losses ranging from Tk 1.2 million to more than Tk 2.6 million, equivalent to roughly USD 9,800 to USD 21,300 per day, depending on the reporting period and methodology used. These operating deficits are ultimately covered by the national treasury.
The tunnel itself reportedly cost around Tk 106.9 billion, or approximately USD 876 million, making it one of Bangladesh's largest transport infrastructure investments. Supporters argue that such projects should be evaluated over decades rather than years, as industrial development, logistics, and urban expansion around Anwara may eventually increase traffic demand. Critics, however, contend that optimistic forecasts and insufficient planning have delayed the project's economic viability.
The adjacent luxury accommodation has become a particular focus of debate because of its limited use. Media investigations have reported that the resort was originally intended to host visiting dignitaries and senior government officials. With very few guests staying there, authorities have begun exploring the possibility of leasing the facilities to private tourism operators in an effort to reduce public losses and generate income from the otherwise idle property.
Economists note that major infrastructure projects often require many years before delivering their full economic benefits. Nevertheless, they emphasize that supporting industrial zones, commercial investment, residential development, and improved transport networks are essential if the tunnel is to reach its projected traffic volumes. Without these complementary developments, expensive supporting facilities such as luxury guesthouses and recreational complexes risk remaining underutilized.
For many observers, the Karnaphuli Tunnel represents both an engineering milestone and a cautionary lesson in public investment. While the underwater tunnel demonstrates Bangladesh's growing capacity to undertake sophisticated infrastructure projects, the adjoining resort complex illustrates the financial risks of constructing costly auxiliary facilities without a sustainable operational plan.
As the government considers privatizing or leasing the luxury rest house, policymakers face the challenge of transforming a largely unused public asset into a productive one. Whether these measures succeed may determine if the adjacent resort evolves into a thriving tourism destination or continues to symbolize the financial burdens associated with one of the country's most ambitious infrastructure projects.
>>Bashir Al Mamun, AA
