The government on Wednesday approved a new Tk 45,503.76-crore metro rail project while raising the estimated costs of two ongoing metro projects by a combined Tk 1.10 lakh crore, putting the total revised cost of the two at more than Tk 2 lakh crore.
The Executive Committee of the National Economic Council (ECNEC) approved the MRT Line-5 Southern Route from Gabtoli to Dasherkandi, alongside second revisions to MRT Line-1 and MRT Line-5 Northern Route, at a meeting chaired by Prime Minister Tarique Rahman at the Bangladesh Secretariat.
The three metro projects alone now involve an estimated Tk 2,49,747 crore, underscoring the government’s continued reliance on large-scale mass-transit projects to expand public transport in Dhaka.
The new MRT Line-5 Southern Route will be 17.2 kilometres long, including 13.1 kilometres underground, linking Gabtoli with Dasherkandi through Technical, Kallyanpur, Shyamoli, College Gate, Asad Gate, Sukrabad, Karwan Bazar, Hatirjheel, Tejgaon and Aftab Nagar.
The project will be implemented from September 2026 to August 2033 by Dhaka Mass Transit Company Ltd. The government will provide Tk 15,197.66 crore, while Tk 30,306.10 crore will come as project loans from the Asian Development Bank and South Korea’s Economic Development Cooperation Fund.
The line is planned to connect with MRT Line-5’s northern route and MRT Line-1, creating interchange facilities between major metro corridors.
The project’s cost had initially been proposed at Tk 54,618.96 crore. After several rounds of review, it was brought down to the approved Tk 45,503.76 crore. The largest allocation, Tk 17,737.43 crore, is for the main line, stations and depot civil works, while Tk 13,258.49 crore is earmarked for electrical, mechanical and railway systems.
Existing metro projects see huge cost increases
The 31.24-km MRT Line-1, connecting the airport with Kamalapur and including an elevated branch from Natun Bazar towards Purbachal, will now cost Tk 1,14,394.89 crore, up from the original Tk 52,561.43 crore approved in 2019.
This represents an increase of Tk 61,833.46 crore, or 117.64 percent. The government’s contribution will rise to Tk 30,552.26 crore, while the JICA loan will increase to Tk 83,842.63 crore.
Officials attributed the sharp rise partly to delays in design and tender preparation during the Covid-19 pandemic and the complexities of implementing Bangladesh’s first underground metro rail.
Changes made during detailed design included larger stations, relocation of entrances, exits and ventilation shafts, a three-storey Rajarbagh station and about 20 kilometres of detour roads for traffic management during construction.
The 20-km MRT Line-5 Northern Route, from Hemayetpur to Bhatara, has also seen its cost more than double, rising to Tk 89,848.36 crore from Tk 41,238.54 crore approved in 2019.
The increase of Tk 48,609.82 crore amounts to 117.88 percent. The government’s share will rise to Tk 22,330.11 crore and the JICA loan to Tk 67,518.24 crore.
The Hemayetpur-Amin Bazar section will be elevated, while the Amin Bazar-Bhatara section will run underground through densely populated areas. The project, originally scheduled for completion by 2028, is now proposed for completion by December 2032.
Together, the two Japan-funded projects were initially estimated at Tk 93,799.97 crore. Their combined revised cost has now reached Tk 2,04,243.25 crore — an increase of Tk 1,10,443.28 crore, or 117.74 percent. The final figure is Tk 9,741.84 crore below the combined amount proposed earlier by DMTCL.
Planning State Minister Md Zonayed Abdur Rahim Saki said the revisions had been scrutinised by technical committees.
He also said the government had to take into account the rising cost of Japanese financing, noting that the interest rate on JICA loans would cross 3 percent after this month and could exceed 3.5 percent in another six months.
Saki said Bangladesh had yet to develop the capacity to build metro rail systems on its own and that Japanese contractors could not deliver the projects at substantially lower costs.
Projects worth Tk 1.69 lakh crore approved
Besides the three metro projects, the ECNEC approved nine other projects, taking the total number of approved projects to 12 with an estimated cost of Tk 1,68,780 crore.
Of the total, Tk 48,256.30 crore will come from the government, Tk 1,20,466.39 crore as project loans and Tk 57.71 crore from the concerned organisations’ own funds.
Five of the projects are under the Road Transport and Bridges Ministry, two each under the Defence and Railways ministries, and one each under the local government, labour and power and energy ministries.
Among the major approvals are Tk 3,822.51 crore for introducing electric traction on the 52-km Narayanganj-Dhaka-Joydebpur railway section and Tk 4,667.42 crore in additional funding for the Bogura-Sirajganj dual-gauge railway project. The electric-traction project is scheduled for completion by June 2031 and is expected to reduce fuel use compared with existing diesel-electric traction.
The ECNEC also approved Tk 943.87 crore for upgrading district highways under the Rajshahi Road Zone and Tk 1,459.35 crore for the third phase of similar upgrading under the Chattogram Road Zone.
Other approved projects include the second phase of the Barishal Cantonment at Tk 1,153.60 crore; accommodation and infrastructure for naval personnel in the Khulna Naval Area at Tk 374.14 crore; the first revised Khulna sewerage system project with an additional Tk 270.39 crore; and improved working conditions and social protection for textile and leather workers at Tk 89.25 crore.
The government also approved an additional Tk 52.82 crore for upgrading and expanding electricity distribution in Monpura island.
The meeting was informed that 15 projects costing less than Tk 50 crore each had already received approval from the planning minister, covering areas including land management, environmental restoration, telecommunications in economic zones, flood forecasting, social protection and public infrastructure.