The project combines Buri-ganga, Turag, Balu and Shitalakhya rivers encircling the city. The first phase of the project will include the Buriganga and Turag stretching 29.5km waterways from Sadarghat to Ashulia.

The DTCB agreed in principle to fund the second phase from Ashulia to Kanchpur Bridge on Balu and Shitalakhya rivers. The second phase, also covering Tongi and Rampura in the eastern part of the city, will have six landing stations.

Bangladesh Inland Water Transport Authority (BIWTA), the implementing agency, was directed to lay out a project proposal outlining cost.

BIWTA officials said they are close to finalising the proposal. "We will submit it soon," a BIWTA official said.

The DTCB will also build a riverside road network.

"We are thinking of constr-ucting an expressway and widening the existing roads for an interchange traffic system around the city," a DTCB official said.

The BIWTA has recently completed the construction of a landing station on the Buriganga at Basila as part of the project.

"If we finish the second phase, Dhaka will have an integrated waterway and commuters will be able to visit any place of the city by waterway," the BIWTA official hoped.

Hundreds of city commuters travel through waterways and thousands of tons of cargo, building materials like bricks, sand, cement and livestock are ferried a day.

The circular waterway is expected to reduce traffic jam in the city, as more commuters will use the waterways for navigation. Navigation and dredging will bring flow to the rivers, which is useful for fisheries, as the polluted water will not be stagnant.

Dhaka city is one of a few cities in the world gifted by circular waterways which could enhance the beauty.

The BIWTA runs short of fund, slowing the Tk 35 crore project. In the original proposal were three landing stations, but authorities considering water traffic increased the number to 10.

About 60 percent of the budget is allocated for dredging, as river dredging gets priority in the project. And 25 percent of the fund is earmarked for land acquisition and 15 percent for landing facilities from Swarighat to Ashulia.

Major landing stations will be built at Swarighat, Gabtoli, Aminbazar and Ashulia in the first phase. Two pontoons, two steel gangways, a terminal building, a transit shed and a connecting road will be constructed at each major landing station.

The construction of pontoons, steel gangways and passenger guestrooms were built at the minor landing stations at Kholamora and Basila.

Launching water buses and taxis on the Buriganga and Turag rivers is scheduled for June 2005.