0nline Desk  

The government has renewed efforts to restart the contractor selection process for the MRT-1 metro rail project from Kamalapur to Hazrat Shahjalal International Airport in Dhaka. However, concerns are growing over a sharp increase in project costs.

According to sources, cost proposals from Japanese contractors are nearly double the government’s initial estimates. The per-kilometer cost, originally set at around 1,839 crore taka, has risen to approximately 3,618 crore taka in contractor bids. Earlier, the interim government had canceled the tender process due to high costs.

The project is being implemented by Dhaka Mass Transit Company Limited (DMTCL) with financing from Japan International Cooperation Agency (JICA). However, JICA raised objections when the tender was canceled, stating it conflicted with loan agreement conditions, which led to delays in progress.

Following discussions with the current government, efforts are underway to move the project forward again. A recent meeting involving the Economic Relations Division, JICA, and project stakeholders decided to review cost reduction options while continuing the tender process.

Under the plan, the Kamalapur-to-airport section will be underground, while the route from Nadda to Purbachal will be elevated. The total length of the line exceeds 31 kilometers. Initially approved in 2019 with an estimated cost of 52,561 crore taka, the project’s potential cost has now risen to প্রায় 96,500 crore taka.

DMTCL sources say bids have been received for 8 out of 12 packages, with most proposals significantly exceeding initial estimates. So far, overall project progress stands at only about 6%.

Experts attribute the rising costs partly to a lack of competition in the tender process. Due to JICA’s loan conditions, Japanese contractors have dominated, limiting open international bidding and making it difficult to determine competitive pricing.

Specialists suggest that increasing global competition by allowing contractors from other countries could help reduce costs. The Ministry of Road Transport and Bridges stated that the reasons behind the cost escalation are being reviewed and that the project proposal may be revised if necessary.

It is worth noting that another JICA-funded metro project, MRT-5 (North), is also progressing slowly due to similar cost concerns. The timely implementation of these projects is considered crucial for Dhaka’s future urban transport development.