Once the bypass is open to traffic, the vehicles coming from 16 northern districts and greater Mymensingh will be able to go to Chittagong, Sylhet and other eastern and southeastern districts without entering Dhaka.

The bypass being constructed with the government's own resources will significantly reduce the traffic pressure on the city roads, sources said.

The construction of the road started in November 2001. Initially, the government had approved Tk 192.46 crore for the project but later the cost of the project was revised and estimated at Tk 317.15 crore.

Sources however said the project cost may go up to Tk 350 crore as the road is going to be of four lanes instead of two lanes planned earlier.

Besides, some other components like small bridges, culverts and toll plazas were also included in the project that raised the cost.

The government has meanwhile decided to expedite the construction of Kanchan Bridge over the river Shitalakhya on the bypass. Officials concerned said around 85 percent work on the bridge has already been completed.

The 415-metre long bridge is being constructed at a cost of Tk 77 crore.

A meeting at the communications ministry last week discussed the overall progress of the project and felt that the bypass should be completed as soon as possible for a permanent solution to the traffic congestion in the city.

Communications Minister Nazmul Huda chaired the meeting attended by the secretary and other high officials of the ministry and the Roads and Highways department and representatives from Planning Commission.

"We are confident that the project would be completed by June 2005, if everything goes smoothly," Nazmul Huda told journalists after the meeting.

Asked why the project was delayed, the minister admitted that there were some misunderstandings about the escalation of the project cost.

Meeting sources said the Executive Committee of the National Economic Council (Ecnec) had raised various questions about the cost of the project. The Ecnec had also asked the Planning Commission to examine the reason for the cost escalation and the commission formed a committee to re-examine the matter.

The planning commission has however accepted the reasons for the cost increase and agreed to recommend for the revised amount.

"The reason for the cost escalation is justified because the road is being built with four lanes instead of two lanes," a meeting source quoted the planning commission representative as saying at the meeting.

The commission will submit its report in a week and the ministry will place the revised project before the Ecnec for final approval, the source added.

Officials said Tk 206 crore was spent for the project by June 2004. The government has allocated another Tk 35 crore in the current fiscal year.