Tk 1.22 Billion Squandered on Dhaka Circular Waterway: PM Tarique Directs Revival of Failed Project

Dhaka, August 8, 2026 — A Tk 1.22 billion government investment in Dhaka's circular waterway project yielded only Tk 25.2 million in revenue before the service was shut down — and now Prime Minister Tarique Rahman has directed officials to restart the defunct water transport system, raising questions about whether the mistakes of the past can be avoided this time around.

🚢 The Circular Waterway Concept

The rivers Turag, Buriganga, Shitalakkhya, and Balu — along with 110 kilometres of waterways — surround Dhaka. It has long been believed that operating vessels along these waterways could reduce pressure on roads inside the capital, which suffers from some of the worst traffic congestion in the world. The circular waterway was conceived as a solution: a ring of water transport routes connecting Sadarghat, Gabtoli, Ashulia, Tongi, Kanchpur, and Narayanganj, allowing passengers to bypass road traffic entirely.

💰 How Much Was Spent?

According to Bangladesh Inland Water Transport Corporation (BIWTC) sources, the first project to establish the circular waterway and introduce vessels was undertaken in 2000. The first phase was completed in 2005. A study published in the Bangladesh Institute of Planners (BIP) journal in 2013 said Tk 360 million was spent on the first phase — which included dredging 29.5 kilometres of waterway from Ashulia to Sadarghat and constructing 10 landing stations, seven terminal buildings, and other infrastructure.

The second phase was implemented between 2007 and 2010 at a cost of Tk 475 million. It involved developing a 40-kilometre waterway from Ashulia through Tongi to Kanchpur Bridge, with three landing stations and additional infrastructure. A total of Tk 835 million was spent on the two phases. Another Tk 380 million was spent on purchasing and operating water buses. In total, the government spent approximately Tk 1,220 million on the circular waterway — and earned only Tk 25.2 million in return.

• 💰 Phase 1 (2000-2005): Tk 360 million (29.5 km, 10 landing stations)
• 💰 Phase 2 (2007-2010): Tk 475 million (40 km, 3 landing stations)
• 💰 Water bus purchase/operation: Tk 380 million
• 💰 Total spent: Tk 1,220 million (Tk 1.22 billion)
• 📉 Total revenue earned: Tk 25.2 million
• 📉 Return on investment: ~2.1%

🚧 Why It Failed: Low Bridges, Pollution, Bad Management

Passenger services were never launched along the entire 110-kilometre route because of low-clearance bridges. According to Bangladesh Inland Water Transport Authority (BIWTA) data, around Dhaka's circular waterway there are about 25 road bridges and three railway bridges over the Buriganga, Turag, Tongi Canal, Balu, Shitalakkhya, and Dhaleshwari rivers. Twenty of these bridges have insufficient clearance. Many bridges would have to be demolished to operate vessels along the entire route — a politically and practically daunting proposition.

The water bus service was first launched in 2004 between Ashulia and Sadarghat using two small launches, but was discontinued after a short period. In 2010, two water buses (MV Buriganga and MV Turag) were introduced, followed by 10 more in two phases in 2014. The service was discontinued around 2016 — with the landing stations becoming "ghost houses" and the water buses falling into disrepair.

💬 "We Ended Up Spending Time at the Terminal"

Touhid Hossain, a Mirpur-based fruit trader who used the water bus from Gabtoli to Sadarghat, told Prothom Alo that travelling by water bus was more troublesome than taking a bus. "Once the water bus was full, we often could not find the driver. We used the water bus to save time, but we ended up spending time at the terminal itself. That is why it lost popularity," he said.

M Laskar Md Babul, who has worked at Gabtoli terminal for 20 years, said there was actually no shortage of passengers. "People would come when we called them over the loudspeaker. But after arriving, they would sit around waiting because the drivers could not be found. Many passengers eventually became frustrated and got off the water bus," he said.

BIWTC officials said the water bus service failed because of a lack of passengers — with river pollution being one of the main reasons. Passengers did not want to travel by water because of the foul smell from the polluted Buriganga. In 2017, a BIWTC committee recommended several measures, including removing the foul smell from the Buriganga, improving access to terminals, building walkways along both river banks, and increasing lighting, fans, and other facilities on water buses. None of these recommendations were implemented.

🚚 12 Water Buses: 9 to Be Sold as Scrap

Of the 12 water buses purchased for the circular waterway, nine are now out of service and will be sold as scrap. A visit to Badamtoli Ghat in Old Dhaka found five water buses lying in a dilapidated condition — windows broken, seats damaged or removed by thieves. Of the remaining four, two are in Narayanganj and two in Chattogram. Only three of the original 12 are still operational, running on the Aricha-Kazirhat route.

BIWTC Public Relations Officer Mohammad Nazrul Islam told Prothom Alo that the vessels are currently abandoned because they no longer have valid fitness certificates. They will be sold through auction.

🏛️ PM Tarique Directs Revival

At a meeting on August 2, Prime Minister Tarique Rahman directed officials to restore the circular waterway around Dhaka. He also called for measures to prevent river pollution, improve the city's drainage system, and maintain navigability and water flow in the rivers. The meeting was held in a special meeting room of the Cabinet Division at the Secretariat, attended by ministers and secretaries from relevant ministries.

According to a Bangladesh Sangbad Sangstha (BSS) report, BIWTC will not be given responsibility for operating water buses on the circular waterway this time. Instead, interested private companies will be given the responsibility, while BIWTA will coordinate the overall process. BIWTA sources said they have already begun work — officials are identifying the problems, and initially they are planning to launch water bus services on the Gabtoli-Sadarghat route.

📈 Can It Succeed This Time?

The decision to involve private companies rather than BIWTC is a significant departure from the previous approach — and acknowledges that the state-owned corporation's management was part of the problem. However, the structural challenges that doomed the first attempt remain:

• 🚧 Low-clearance bridges: 20 of 28 bridges still have insufficient clearance for vessels
• 🚿 River pollution: The Buriganga remains one of the most polluted rivers in the world
• 👥 Management: Private operators may be more efficient, but will they invest in infrastructure?
• 💰 Financial viability: The previous service earned only Tk 25.2 million against Tk 1.22 billion invested

For the revival to succeed, the government will need to address the bridge clearance problem (either by demolishing and rebuilding bridges or by using low-profile vessels), clean up the river pollution (a multi-decade challenge), and create a financial model that makes the service commercially viable for private operators. Without these structural fixes, the revival risks repeating the same pattern: initial enthusiasm, declining ridership, operational losses, and eventual shutdown — with another round of public money squandered.

✅ What Comes Next

BIWTA is already identifying problems and planning the initial Gabtoli-Sadarghat route. The private operator selection process, vessel procurement, and infrastructure rehabilitation will determine whether the revived service can avoid the fate of its predecessor. For Dhaka's millions of commuters who spend hours in traffic every day, the success of the circular waterway would be transformative — but history suggests that cautious optimism, rather than enthusiasm, is the appropriate response.