Dhaka Metro Rail Expansion: Projects Face Massive Cost Increase
The cost to build two new metro rail lines in Dhaka is expected to more than double. The original estimate was Tk 938 billion. This has now risen to Tk 2.13985 trillion. The Planning Commission is reviewing this proposal for more funds.
One project is MRT Line-1. It will be an underground metro rail from Kamalapur to the airport. It also includes elevated parts. The other is MRT Line-5 (Northern Route). This line runs from Savar to Bhatara, also with underground and elevated sections.
Dhaka Mass Transit Company Limited (DMTCL) manages these projects. DMTCL sources cited several reasons for the cost rise. Changes in detailed designs are a factor. Construction material prices have increased. The Taka’s value has dropped against foreign money. Project delays also add to expenses.
Both MRT Line-1 and Line-5 began in 2019. DMTCL sent revised cost proposals to the Planning Commission. Meetings are scheduled to discuss these higher expenses.
The Japan International Cooperation Agency (JICA) provides the loans. The interim government had questioned the cost increase. They sought lower expenses. The current BNP government formed a technical committee to advise on reducing costs.
Professor Shamim Z Bosunia led this committee. They found the cost increase justified. Professor Bosunia explained that inflation, a weaker Taka, and expanded designs were key reasons. Government taxes also rose.
Road, Rail and Shipping Minister Sheikh Robiul Alam stressed the metro rail’s importance for Dhaka. He warned that further delays would lead to even higher future costs.
For MRT Line-1, the cost jumped from Tk 525.61 billion to Tk 1.20 trillion. MRT Line-5 (Northern Route) cost rose from Tk 412.39 billion to about Tk 931.91 billion.
Some officials suggest JICA’s loan conditions play a role. These often favor Japanese contractors in tenders. This reduces competition. Limited competition can drive project costs higher.
Professor Shamsul Hoque of BUET agreed. He said open competition in tenders would reduce costs. He advised the government to ask JICA to relax its tender conditions.
