Dhaka: The Road Transport and Bridges Ministry on Tuesday signed a $ 705 million deal with a Chinese firm to implement the multi-lane dream tunnel to be constructed beneath the Karnaphuli River in Chittagong.

Road Transport and Bridges Secretary MAN Siddique and Chairman of China Communication Construction Company Ltd (CCCCL) Liu Qitao inked the deal in Beijing, said an official here.

Road Transport and Bridges Minister Obaidul Quader was present at the signing ceremony.

On 9 June last year, Bangladesh and China signed a memorandum of understanding (MoU) on construction of a tunnel under the Karnaphuli River.

Bangladesh expects that the tunnel, once implemented, will to give a boost to the national economy helping the country fetch a high volume of investment.

It is expected that it will create new avenues of economic activities over tourism industry, industrial parks, special economic zones, deep seaport, new power plants, LNG terminal and Asian Highway.