Officials said a Chinese company, China Communication Construction Company (CCCC), recently placed a proposal to the Bangladesh Bridge Authority (BBA) in this connection.

The Chinese company conducted a feasibility study jointly with Ove Arup and Partners of Hong Kong on the proposed tunnel at a cost of BDT 120M (USD 1.5M) and then showed interest in the tunnel project, they said.

"On receipt of the proposal from the Chinese company, we have requested the Chinese government to fund the project and got a positive feedback," said a BBA official.

He said the Chinese government, however, tagged a condition with it – allowing it to invest in economic zone development alongside the tunnel project.

The Economic Relations Division (ERD) sent an official letter to the Chinese government a few months ago requesting it to fund the project.

The CCCC study found construction of the 3.4km tunnel across the Karnaphuli river feasible.

Communications Minister Obaidul Quader said the government wanted to construct the tunnel in view of the future need and the funding was under consideration of the higher authority.

"We want to construct the tunnel either with the government’s own fund or foreign fund as its impact on the economy is significant," the minister told journalists after a presentation on the study at in Chittagong. The BBA organised the presentation.

Mr Quader, however, said efforts were made to arrange foreign funds and a government-to-government arrangement with China was also under consideration.

He said it would not be possible to start construction of the tunnel during the present government’s tenure, but the government wanted to carry out other work in phases so it could be started in time.

"We are not always working on the only projects which can be completed or launched during our tenure. We are also targeting the next generation. If we are elected, we’ll then start those," the Communications Minister added.

The CCCC in the presentation showed that the 3.4 km multi-lane tunnel would have a 4.9 km approach road on the eastern side and a 0.74 km approach road on the western side.

The tunnel consisting of two tubes — each of them two-lane — has been proposed to be constructed at an approximate cost of $691.84 million.

The tunnel, 6.0-7.0 km upstream of the Chittagong airport, will connect with the Dhaka Trunk Road and also with the airport through the Patenga Road on the western bank.

Usually, the construction period for this kind of tunnel is four years.