The Malaysia-based construction company, Azimat Consortium, proposed to build the 210-kilometer highway at a cost of around $900 million. This would be the first expressway in the country with six lanes and facilities like adequate parking space, fuelling stations, rest houses and mosques at regular intervals.

The company will construct the highway on a build, own, operate and transfer (BOOT) basis. After operating for 30 years and recovering the investment through collecting toll, the expressway will be handed over to the government.

The Malaysian company proposed the investment last year and the communications ministry first scrutinised it before forwarding it to the high-powered private infrastructure committee (PICOM). The proposal was placed before the cabinet for final approval after the PICOM had passed it.

Communications Minister Nazmul Huda however told The Daily Star last night that the cabinet has approved the decision of constructing the second national highway but no particular company has been chosen. But he admitted that the company [Azimat] had qualified in pre-qualification bid.

The government will go for an international tender for building the expressway on BOOT basis by a private company, he said.

When asked, the minister said the cabinet decision came on the basis on a proposal made by the Malaysia based construction company.

The new highway will be built in different alignments from the existing highway. It will go through Narayanganj, Munshiganj, Chandpur and Mirersharai.

The expressway will reduce the journey time between Dhaka and Chittagong to three hours from the existing 6-7 hours. It will also help develop the economic corridor between the capital and the port city.

The company is expected to start the construction of the highway this year after a formal agreement signing and the work would take three years, according to sources.

The cabinet meeting yesterday also approved the draft of the Transfer of Property (amendment) Act, 2006 and Hajj Policy 2006 for smooth hajj management.