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[🇧🇩] City Buses, Metro Rail, Urban Transport & City Road Infra

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[🇧🇩] City Buses, Metro Rail, Urban Transport & City Road Infra
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Metro rail: Construction from Motijheel to Kamalapur to be delayed
Anowar Hossain Dhaka
Updated: 19 May 2025, 16: 11

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The construction of metro rail from Motijheel to Kamalapur is set to be delayed due to the proposal of higher costs by the contractor.

Although the extended part was supposed to be opened in June 2025, uncertainty has emerged over the opening of the 1.25 kilometer-route even next year.

Sources at the metro rail project said problems has appeared over appointing contractors without open tender.

The Indian contracting firm Larsen & Toubro has submitted a bid that is more than double the estimated cost. The interim government is not interested in proceeding with the work at such a high price. In this situation, instructions have been given to either accept proposals from alternative contractors or to invite new bids.

The decision to extend the metro rail to Kamalapur was made in 2022. A contractor was appointed the following year, in 2023, for the construction of the elevated structure and the station at Kamalapur. According to the contract, the work was supposed to be completed by June of this year. However, due to slow progress, the deadline has been extended to December.

According to officials concerned, progress on the construction work of the Motijheel–Kamalapur section—such as the elevated roadway and station construction at Kamalapur—is very limited. Meanwhile, a contractor has yet to be appointed for the other tasks, including the installation of the railway line, electrical systems, and signaling (electromechanical works).

Inquiry into the complications surrounding contractor appointment revealed that the then Awami League government had planned to implement the extended section of the project from Motijheel to Kamalapur using the same contractors working on the Motijheel–Uttara segment, without issuing a separate tender. This was treated as an additional work (variation) under the existing contract. The government at that time appointed contractors for the physical construction work.

Beyond that, they spent nearly a year trying to appoint an Indian contractor for other tasks, including the installation of the railway line, electrical systems, and signaling. However, those efforts were unsuccessful. After the fall of the Awami League government during the mass uprising on 5 August of last year, the issue of the contractor's high bid came to light.

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Metro rail File photo

The decision to extend the metro rail to Kamalapur was made in 2022. A contractor was appointed the following year, in 2023, for the construction of the elevated structure and the station at Kamalapur. According to the contract, the work was supposed to be completed by June of this year. However, due to slow progress, the deadline has been extended to December.

It was found Larsen & Toubro’s bid to be excessively high. Even if just one taka of taxpayers' money can be saved, that effort should be made---DMTCL board member and BUET professor Md Hadiuzzaman.

According officials concerned, as of April, the construction work on the section from Motijheel to Kamalapur was 50.97 per cent complete.

According to projections, the metro rail from Uttara to Motijheel is expected to carry 500,000 passengers daily. However, currently, more than 400,000 people use the metro each day. Once extended to Kamalapur, the daily passenger count is expected to rise to 677,000. The longer the delay in opening the extended section, the more the opportunity to transport additional passengers will be missed. Regular commuters along that route will also continue to suffer due to traffic congestion.

Kabir Hossain works at a hotel in Kamalapur. He lives in the Farmgate area. Speaking to Prothom Alo, he said that he currently travels from Farmgate to Motijheel by metro. After getting off at Motijheel, he has to take a rickshaw to reach his destination, which costs him Tk 40. On the return trip, he again takes a rickshaw to Motijheel.

Kabir Hossain noted that many long-distance train passengers from Kamalapur railway station also commute in a similar manner. If the metro rail were extended to Kamalapur, it would significantly ease the commute for train passengers as well as people working in nearby offices and businesses.

The Dhaka Mass Transit Company Limited (DMTCL) is responsible for building and operating the metro rail in Dhaka. A source at the organisation said that completing the remaining work—including rail line installation, electrical systems, and signaling—will take at least a year and a half. Regardless of whether a new contractor is appointed or the task is assigned to the Indian company, it could take up to two more years for the metro to reach Kamalapur. In the meantime, the physical construction—such as the station and elevated track—will be completed, but they will remain unused.

After getting off at Motijheel, I have to take a rickshaw to reach my destination, which costs me Tk 40. On the return trip, I again take a rickshaw to Motijheel---Kabir Hossain.

Contractor demands more than double

The work on the Motijheel–Kamalapur section of the metro rail has been divided into two parts (packages). The physical work includes the construction of the elevated track and the station at Kamalapur. To operate the trains, seven additional types of work are required. These include installation of the rail tracks, elevators, escalators, monitors, platform screen doors aligned with train doors, signaling systems, and automated fare collection machines. In addition, the power supply system, including substations for operating the trains and station facilities, must also be set up. All of these tasks have been grouped under a single package. However, there is no need for new trains or coaches for this segment, as 24 sets have already been imported.

To operate the trains, seven additional types of work are required. These include installation of the rail tracks, elevators, escalators, monitors, platform screen doors aligned with train doors, signaling systems, and automated fare collection machines. In addition, the power supply system, including substations for operating the trains and station facilities, must also be set up. All of these tasks have been grouped under a single package.

According to sources at DMTCL, the track, electrical, and signaling work for the Uttara–Motijheel section was carried out jointly by Japan’s Marubeni Corporation and India’s Larsen & Toubro. The previous Awami League government had planned to assign the extended section’s work to the same contractor. It was argued at the time that assigning it to a different company would complicate coordination with the Uttara–Motijheel segment. However, experts believe that this claim has no real technical basis.

According to sources concerned, for the Kamalapur section's rail, electrical, and signaling work, Larsen & Toubro expressed interest in handling the entire package alone—without Japan’s Marubeni Corporation. They were invited to submit a bid and, after nearly a year, they submitted their proposal in July last year. Their proposed cost was Tk 6.45 billiond, while the project authority had allocated only Tk 2.74 billion for this work. At the time Larsen & Toubro submitted their proposal, student and public protests were ongoing in the country, so the Awami League government could not approve the bid.

After the interim government took office in September last year, the issue was raised in a board meeting of Dhaka Mass Transit Company Limited (DMTCL). The board showed no interest in awarding the contract at such a high cost and advised reducing expenses. Following this, the project authority negotiated with the Indian contractor three times. Ultimately, Larsen & Toubro submitted a final bid of Tk 5.90 billion—still more than double the estimated cost.

In late April, DMTCL once again sought guidance from the board regarding this issue. The board recommended either accepting proposals from alternative contractors or issuing a new tender.

The physical construction work of the Motijheel–Kamalapur section is being carried out by Italian-Thai Development Public Company, based in Thailand, under a contract worth Tk 5.11 billion. They have partnered with Bangladesh’s McDonald Steel as an associate contractor.

Italian-Thai also did the physical construction work for the Uttara–Agargaon section. Additionally, the Agargaon–Motijheel section was built by Japan’s Tekken and Sumitomo Mitsui Corporation. The project authority also invited bids from them for the extended Kamalapur section.

A DMTCL official, speaking to Prothom Alo on condition of anonymity, said that although the physical construction for the Kamalapur section was not awarded through an open tender, there was still competition because multiple companies submitted proposals. However, for the package involving the rail line, electrical, and signaling work, Larsen & Toubro was the sole bidder, which has brought the high cost into question.

By virtue of his position, road transport and highways division senior secretary Ehsanul Haque is the chairman of DMTCL's board.

Speaking to Prothom Alo, he said, "A contractor cannot be appointed without competition." He also mentioned that they are discussing the matter with the funding agency JICA and that a new tender will be issued.

Recommendation to appoint contractor through open tender

The Uttara to Agargaon section of the metro rail was inaugurated on 28 December 2022. The Agargaon to Motijheel section was opened on 4 November 2023. According to the project proposal, the extension to Kamalapur is scheduled to be operational by June this year.

The official name of the metro line from Uttara to Kamalapur is MRT Line-6. The distance from Uttara to Motijheel is 20.1 kilometers, and to Kamalapur it is 21.26 kilometers—meaning the extended portion adds 1.16 kilometers. There are a total of 17 stations from Uttara to Kamalapur.

When the metro rail project was approved in 2012, the estimated cost was Tk 219.85 billion. That figure has now increased to Tk 334.72 billion. A loan of Tk 197.18 billion has been taken from JICA, Japan’s international development agency.

Md Hadiuzzaman, a board member of DMTCL and a professor in the Department of Civil Engineering at Bangladesh University of Engineering and Technology (BUET), told Prothom Alo that delays have already occurred in the overall metro rail project and in the physical construction work for the Motijheel–Kamalapur section. He said that even if it causes a bit more delay, a new contractor should be appointed through an open tender process.

Explaining his reasoning, he said he also found Larsen & Toubro’s bid to be excessively high. “Even if just one taka of taxpayers' money can be saved, that effort should be made,” he added.​
 

Metro rail expansion encountering hitches

FE
Published :
Jul 10, 2025 23:03
Updated :
Jul 10, 2025 23:03

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The Dhaka Mass Transit Company Limited (DMTCL) finds itself in a dilemma over the expansion of the metro rail network, particularly involving the Contract Package (CP) 6 of MRT Line 5 North. Despite notable interest from global firms, the tendering process appears to have been shaped by Japan-specific conditions that have effectively excluded all but a handful of Japanese bidders. This limited competition has culminated in a staggering 162 per cent cost overrun in CP 6, raising concerns about transparency and long-term sustainability.

According to a report in The Financial Express, the lowest bid for CP 6 of the MRT Line 5 North was submitted at over Tk 155 billion-substantially higher than previous estimates and placing the DMTCL in a tight corner. Matters have been made more complicated by the rigid financing rules imposed by the Japan International Cooperation Agency (JICA), which limit little room for price negotiation. The DMTCL is currently tasked with developing a 128-kilometre-long MRT network comprising six lines that will span both the north-south and east-west corridors of Dhaka.

Procurement experts and engineers have flagged concerns, warning that the procurement framework for metro projects is increasingly being monopolised by Japanese firms. The tender documents, they argue, carry systemic limitations that stifle open competition, ultimately raising questions about fairness and technological self-reliance in a flagship infrastructure project. Presently, DMTCL is implementing two JICA-funded metro rail lines-MRT Line 1 and MRT Line 5 North. In the case of CP 6, while 15 firms initially expressed interest during the prequalification phase launched in August 2024, only four-all Japanese-were eventually shortlisted. Of these, just two firms submitted final bids. The lowest bid stood at Tk 155.27 billion, with the second at Tk 164.30 billion. These figures far exceeded the revised cost estimate of Tk 59.51 billion, which itself was an increase from the Tk 39.67 billion approved in the original 2019 Development Project Proposal (DPP). The bids even surpassed the engineering estimate of Tk 61.26 billion prepared in 2025 by the project's Japanese consultant. Officials involved in the bidding process believe this pattern reveals a broader structural issue. The tendering terms, they argue, are skewed in favour of Japanese firms, deterring other capable international companies. The JICA's guidelines which prohibit price negotiation once the lowest bidder is identified, further complicate matters by tying the hands of the DMTCL even when costs surpass rational thresholds. On the other hand, sources associated with the Japanese consultants defend the current model, noting that many donor-funded projects around the world-whether backed by China, India, or others-tend to prioritise firms from the donor country. Japan, they point out, has played a pioneering role in metro rail technology and project execution, which should not be overlooked.

Under the circumstances, the issue should not be viewed as merely monopolistic. While donor priorities and technological expertise must be acknowledged, experts should work towards reaching balanced outcomes. There has to be a framework that allows reasonable negotiations for avoiding project deadlock.​
 

Cost of 2 MRT projects set to rise by Tk 1,600cr
Shahin Akhter 13 July, 2025, 00:52

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Costs of two of the three ongoing projects for the construction of mass rapid transit lines, popularly known as metro rail, are likely to increase by about Tk 1,600 crore.

After the contractors of the MRT Line 6 project’s extension on the Motijheel-Kamalapur route increased the cost of the installation of all systems, the authorities concerned are now analysing an offer for raising the project cost by about Tk 191 crore to Tk 976 crore.

For the MRT Line 1 project, the estimated cost is to be increased by about Tk 1,400 crore to Tk 53,977 crore due to land acquisition.

Project officials said that the cost of the MRT Line 1 project was going to increase following the inclusion of building a construction yard, site offices and a station plaza on 18 acres of land in Aftabnagar area in the project.

‘Initially, these were not in the plan,’ they said.

The deadlines for the three ongoing projects that also include the MRT Line 5 are also likely to be extended due to sluggish pace of the projects.

Officials of the Dhaka Mass Transit Company Limited, the implementing agency of the metro rail system, said that they would likely to start metro train services to Kamalapur by the fourth quarter of 2026, originally scheduled for December 2025.

The utility relocation work of the MRT Line 1 project has remained halted for about two months due to traffic congestion in the capital’s Natun Bazar, Badda and Aftabnagar areas.

DMTCL managing director Faruque Ahmed said that the proposal for increasing the MRT Line 6 extension project cost was given due to the local currency devaluation and price rise of land and materials.

Proposal was also given to extend the project deadline till December 2028 for a major overhaul of the 24-set of metro trains, he mentioned.

For the MRT Line 1 the proposal for increasing the cost was given due to land acquisition, he said.

‘In no country the construction of a metro line is completed before six to seven years,’ he said, adding, ‘I do not know which project in Bangladesh was completed in time.’

The work to build a network of about 141 kilometres of six MRT lines, comprising both elevated and underground ones, by 2030 started in 2016 in the Dhaka city to reduce traffic congestion and improve the environment in the capital and its suburbs.

Out of the six projects, metro trains are now running on the Uttara–Motijheel portion of the elevated MRT Line 6 project. The portion took about six years to be completed.

The construction work of two more lines started in 2023 with the Japan International Cooperation Agency and the government of Bangladesh as the financers, while the construction work of three more lines are yet to start.

The MRT Line 5 was scheduled to have two routes — northern and southern — but the interim government has planned to ditch the MRT Line 5 southern route, citing that it would be less useful.

DMTCL officials said that after the August 2024 political changeover, some of the projects went slow due to delays in JICA approvals and bidding processes.

On August 5, 2024, the authoritarian Awami League regime was ousted in a mass uprising and the interim government assumed office on August 8.

The construction of the 21.26-kilometre MRT Line 6 on the Uttara–Kamalapur route began in 2016.

Metro rail services on the Uttara–Agargaon section was inaugurated on December 28, 2022, which were later extended to Motijheel.

For the extension of the route to Kamalapur, the project is being implemented under two packages – civil and installation of all systems like tracks, electrical and signalling systems. The extension project deadline is this December.

A contract has been signed for Tk 511 crore with the contractors for the civil package.

As of May, the progress of the civil works of the Motijheel-Kamalapur section was 55.5 per cent.

The contractor of the second package, Marubeni (Japan)-L&T (India) joint-venture which also worked for the main project, proposed Tk 651 crore in July 2024 for the work.

As per the detailed project proposal, formed in 2020 and approved in 2022, the estimated cost for the second package was Tk 274 crore. During the project approval, the rate of the dollar was Tk 84.8. on Wednesday, the dollar rate was Tk 123.

Following negotiations by the interim government, the JV offered Tk 465 crore for the work in June.

The 31.241-kilometre MRT Line 1, on the Hazrat Shahjalal International Airport-Kamalapur route, will be the first underground metro rail system in Bangladesh and its construction work started on February 2, 2023, while its deadline is December 2026.

Till June, the overall project progress was about 6 per cent.

In the next revised DPP, the increased cost would be included, said the sources.

While the land development works for the Pitalganj depot under the package 1 was completed, the calling of tenders for 11 other packages of the project are in process.

Once the procedures are completed, a new deadline for the project will be set, said project office sources.

The project’s utility relocation works in Notun Bazar, Badda, Uttar Badda and Aftabnagar areas are now suspended.

The sources said that officials of the Dhaka Metropolitan Police and Dhaka North City Corporation requested them to start the works at first in Bashundhara and Aftabnagar areas.

The construction of the 20-kilomgere MRT Line 5’s Northern Route, on Hemayetpur-Bhatara route, started on November 4, 2023 with an estimated cost of Tk 41,239 crore and the December 2028 deadline.

The progress of the land development works for the depot at Hemayetpur was 54.04 per cent till this May while tenders for other nine works are now in process.

‘I believe we will run trains from Uttara to Kamalapur by the fourth quarter of 2026 if we can sign the contract for the installation of all systems by this month,’ Faruque said.

He also said that at present it was not possible to appoint new contractors for the MRT Line 6 extension as such as action would delay the project by about two years.

Replying to a question on the slow pace of these projects, Faruque said that it was not their intention to sign contracts only but to achieve the optimum benefits from the contracts.​
 

Metro Rail cost will stand at Tk 2 trillion
Anowar HossainDhaka
Updated: 28 Jul 2025, 20: 01

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Test run of metro rail on Agargaon-Motijheel is under way. This picture was taken on 7 July 2023. Prothom Alo

There are growing concerns over the estimated cost of two upcoming metro rail projects in Dhaka.

The total construction cost could exceed Tk 2 trillion (Tk 2,00,000 crore)—more than twice the government’s initial estimate of around Tk 940 billion (Tk 94,000 crore), according to the bids submitted by contractors so far.

Based on the current bids, the per-kilometre construction cost of the new metro lines is projected to exceed Tk 3 billion (Tk 300 crore).

By comparison, the existing metro rail from Uttara to Kamalapur is being built at a cost of Tk 330 billion, with a per-kilometre cost of nearly Tk 1.6 billion (Tk 160 crore).

According to Dhaka Mass Transit Company Limited (DMTCL), the agency responsible for metro rail construction and operations, recent metro rail projects in India have kept costs under Tk 5 billion (500 crore) per kilometre. Metro projects in countries like Vietnam, Turkey, Thailand, and Australia are also being built at lower costs than those proposed for Bangladesh.

One major reason for the higher cost is the conditions imposed by Japan International Cooperation Agency (JICA), the primary lender. Another factor is limited competition—only Japanese companies participate in the bidding process, allowing little room for price negotiation and leading to inflated bids.

Muhammad Fouzul Kabir Khan, an adviser to the road transport and bridges ministry, told Prothom Alo: “The issue of increased metro project costs has been raised in our discussions. The prime adviser’s special assistant Sheikh Moinuddin and the metro rail managing director have been tasked with discussing the matter with JICA.”

For instance, metro rail systems were recently built in Kolkata and Jakarta with JICA financing, but the cost in Dhaka is multiple times higher----Transport expert Professor Shamsul Haque.

When contacted later, Faruk Ahmed, the Managing Director of DMTCL, told Prothom Alo: “We want the metro rail, but we must consider the cost carefully.”

He added that the financial model of the project must be designed to encourage competitive international bidding, which could not only reduce costs but also attract world-class contractors.

Cost per kilometre exceeds Tk 3 billion

The previous Awami League government had planned to build six metro rail lines in Dhaka by 2030. Of these, one (Line-6: Uttara to Kamalapur) is nearing completion. Two other lines currently under construction are MRT Line-1 (from Kamalapur to the airport and Kuril to Purbachal) and MRT Line-5 (from Hemayetpur in Savar to Gabtoli, Mirpur, Gulshan, and ending at Bhatara).

According to government estimates: MRT Line-1 was projected to cost Tk 525.61 billion (52,561 crore) and MRT Line-5 was estimated at Tk 412.61 (41,261 crore).

Both lines will be built as a combination of underground and elevated tracks. MRT Line-1 construction, including train procurement, is divided into 14 packages. Currently, depot development work is underway, being executed by a Japanese contractor.

According to Dhaka Mass Transit Company Limited (DMTCL), final bids for three underground packages (covering 13 km from Uttar Rampura to the airport and including eight stations) have already been received. Japanese firms are leading all three packages. The combined bid amounts to Tk 308.64 (30,864 crore), which translates to approximately Tk 23.74 billion (2,374 crore) per kilometre.

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Metro railProthom Alo

After receiving bids for several packages, DMTCL conducted a full project cost analysis. It found that if the current rate of cost escalation continues, the construction cost alone for the 31 km-long Line-1 could exceed Tk 600 billion (60,000 crore). Once additional expenses are factored in—such as land acquisition, rehabilitation, staff salaries, taxes and duties, consultancy fees, inflation, and potential project scope changes—the total project cost could rise to Tk 942.84 billion (94,284 crore). That means the per-kilometre cost would exceed Tk 30 billion (3,000 crore). Delays and inefficiencies in construction could drive costs even higher.

On the other hand, MRT Line-5 (Northern Route) will span a total of 20 kilometres. Of this, approximately 6.5 kilometres—from Hemayetpur to Gabtoli and Notun Bazar to Bhatara—will be elevated, while the rest will be underground. The line will feature 14 stations.

The construction of the line, including track, stations, and coach procurement, has been divided into 10 separate packages. Depot development is already underway, while the tender process for the main construction works is ongoing.

According to sources at Dhaka Mass Transit Company Limited (DMTCL), the contractor selection process is at its final stage for the underground segment from Kochukhet to Bhatara, which is approximately 5.5 kilometres long and includes three stations.

A consortium led by Japan’s Taisei Corporation has emerged as the lowest bidder, proposing a cost of Tk 155.27 billion (15,527 crore) for the segment. This translates to a per-kilometre cost of over Tk 28.28 billion (2,828 crore). In contrast, when the project was first proposed in 2019, the estimated cost for this segment was only Tk 39.68 billion (3,968 crore) in total.

DMTCL officials have expressed concern that if other packages come in at similarly inflated rates, the total project cost could reach Tk 1 trillion (Tk 1,00,000 crore). This would push the underground construction cost to about Tk 25 billion (2,500 crore) per kilometre, and when land acquisition, salaries, and other expenses are added, the total per-kilometre cost would exceed Tk 30 billion (3,000 crore).

Several senior DMTCL officials, speaking on condition of anonymity, told Prothom Alo that even the currently operational Uttara–Kamalapur metro rail has raised questions regarding its construction cost. Revenue from that line has not been sufficient to repay the JICA loan. They fear that building two more metro lines at such high costs, again with foreign loans, will place a significant burden on the public. As a result, DMTCL is hesitant to approve the contractors' high-cost proposals and is now waiting for guidance from the highest levels of government.

To be continued.......................
 
Dhaka Metro’s 'high costs' under scrutiny

After receiving contractor bids for two new metro rail projects, Dhaka Mass Transit Company Limited (DMTCL) conducted a comparative analysis of metro rail construction costs across various Asian countries. The findings revealed that Bangladesh is spending significantly more on metro construction than its regional counterparts.

For example, in Patna, in the Indian state of Bihar, contractors were appointed in January this year for two segments of an underground metro line stretching over eight kilometres, with six stations.

According to DMTCL’s analysis, the cost per kilometre there is around Tk 4.50 billion (450 crore). Notably, the entire Patna metro line is also financed by JICA, like in Bangladesh, but the main contractors are all Indian firms—a stark contrast to the Japanese-dominated contracts in Dhaka.

Another ongoing project, in Indore, Madhya Pradesh, is being funded by the Asian Development Bank (ADB). In March, contractors were hired to build an 8.5-kilometre underground section with seven stations, at a cost of Tk 3.63 billion (363 crore) per kilometre. For the elevated portion of the same project, the cost per kilometre was only Tk 1.50 billion (150 crore).

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Sources within DMTCL said India also implements metro projects using foreign loans but does not accept loan conditions that reduce competition in contractor selection—something that has contributed to high costs in Bangladesh due to limited bidders and high-priced Japanese contractors.

DMTCL’s study also reviewed recent metro projects in other parts of Asia and beyond. The per-kilometre costs, including land acquisition, salaries, and other expenses, were significantly lower compared to Bangladesh: Sydney, Australia: USD 15.6 million (Tk 1,747 crore), Istanbul, Turkey: Tk 672 crore, Abidjan, Ivory Coast: Tk 448 crore, Seoul, South Korea: Tk 784 crore, Bangkok, Thailand: Tk 740 crore and Ho Chi Minh City, Vietnam: Tk 1,552 crore

In contrast, MRT Line-6 in Dhaka cost around Tk 15 billion (1,500 crore) per kilometre, and for the new Lines 1 and 5, costs may exceed Tk 30 billion (3,000 crore) per kilometre—twice as high.

The overspending is not limited to construction alone. Bangladesh has also spent more on consultancy services. For MRT Line-1, DMTCL appointed consultants at a cost of USD 112.6 million (Tk 1,374 crore). In comparison, Bangalore Metro in India hired consultants for just USD 17.1 million (Tk 209 crore).

Back in 2018, the feasibility study, design, and tender documentation for Dhaka’s MRT Line-1 cost USD 33.9 million (Tk 414 crore). Around the same time, Sri Lanka hired consultants for similar light rail work for only USD 12.5 million (Tk 153 crore).

These comparisons have raised serious concerns about cost efficiency in Bangladesh’s metro projects, particularly as the country takes on massive foreign loans to fund them.

Low competition, high costs

The Japan International Cooperation Agency (JICA) offers a different rationale for the high costs of Dhaka’s metro projects. In an interview with Prothom Alo during his visit to Dhaka on 1 July, JICA’s senior vice president Miyazaki Katsura said, “We prioritise high-quality infrastructure projects. If initial construction costs are low, the long-term maintenance and repair costs often turn out to be high, and such infrastructure is more vulnerable to natural disasters.”

She added that high-quality infrastructure typically comes with higher upfront construction costs, but lower maintenance and repair expenses—citing Dhaka Metro Rail as an example.

However, both DMTCL officials and experts argue that metro construction costs in Bangladesh are higher than similar Japan-funded projects elsewhere, largely due to restrictive loan conditions.

In nearly all JICA-funded projects in Bangladesh, both contractors and consultants are predominantly Japanese. In some cases, local or third-country firms participate only as junior partners. From feasibility studies and design work to tender preparation and implementation, Japanese firms dominate almost every stage. Additionally, every procurement decision—including tender documents—requires JICA’s prior approval. This model applies to all ongoing and completed JICA-backed projects in the country.

According to sources in the road transport and bridges ministry, loan conditions provide Japanese contractors and consultants with a competitive advantage. The tender documents often specify methods and technologies that are nearly impossible for non-Japanese firms to meet.

For instance, the tender for MRT Line-1 mandates that underground tunnel construction be done using the “one-pass joint” method, a technique that gives Japanese contractors a clear edge.

Speaking to Prothom Alo on condition of anonymity, a senior DMTCL official said: “Because of these conditions, even in an open bidding process, non-Japanese contractors rarely participate. In most cases, only two or three Japanese firms end up submitting final bids. And whatever price they quote, we are left with little option but to accept it.”

For example, in Package 4 of MRT Line-1, there were six pre-qualified firms.

Five purchased the tender documents, but only two Japanese companies submitted final bids. A similar pattern occurred with Package 6, where seven pre-qualified firms all bought the tender, yet only two Japanese bidders submitted proposals.

'This kind of development will become a white elephant'

Professor Shamsul Haque, a transportation expert and faculty member at the Department of Civil Engineering, Bangladesh University of Engineering and Technology (BUET), told Prothom Alo that spending nearly Tk 3,000 crore per kilometre for metro rail construction might set a world record.

“This is undoubtedly an overvalued development. It will become a white elephant. We'll be forced to sink into subsidies until we're bankrupt,” he said.

He added that patented Japanese technologies and loan conditions are eliminating real competition in the bidding process. “We’re forced to purchase Japanese contractors, consultants, and products—often at higher prices. Even maintenance requires the same technology and products, which drives up long-term costs.”

“For instance, metro rail systems were recently built in Kolkata and Jakarta with JICA financing, but the cost in Dhaka is multiple times higher,” he said. “As a result, fares in Dhaka are also higher than in Jakarta or Kolkata. Now, with even more expensive metro projects in the pipeline, the key question is: how much will people be charged to cover these inflated costs?”​
 

In a first, World Bank to fund metro line connecting Old Dhaka


The milestone Mass Rapid Transit (MRT) Line 2 project will connect Gabtoli to Old Dhaka up to Demra




Infograph: TBS

Infograph: TBS

Highlights:

  • World Bank to finance Bangladesh's MRT Line 2 project
  • MRT 2 will link Gabtoli, Old Dhaka, and Demra
  • $2.5M grant supports design, feasibility, tender preparations
  • Route revised from 35km Gabtoli-Narayanganj to 25km Gabtoli-Demra
  • Narayanganj to be served later by MRT Line 7
  • Planning Commission prioritizes MRT 2 over MRT 5

For the first time, the World Bank is set to finance a metro rail project in Bangladesh, which will bring Old Dhaka under the network.

The milestone Mass Rapid Transit (MRT) Line 2 project will connect Gabtoli to Old Dhaka up to Demra.

Officials from the Economic Relations Division (ERD) said Japan, the Asian Development Bank (ADB), and South Korea previously financed metro projects, and the World Bank has now granted policy approval for loans to construct the MRT 2 project.

The World Bank will support the project by assisting with the feasibility study, basic and detailed designs, as well as tender preparation – all under a Technical Assistance Project Proforma.

The Bank will provide a $2.5 million grant for the Proforma, according to officials from ERD and the Dhaka Mass Transit Company Limited (DMTCL), a state-owned enterprise responsible for implementing and operating metro rail projects.


The total estimated cost of the revised project and the size of the World Bank loan will be determined following the Proforma completion.

The MRT 2 project has been slightly revised – from a 35-kilometre line to a 25-kilometre route featuring both elevated and underground sections.

It will run from Gabtoli to Demra via Mohammadpur, New Market, Lalbagh, Mitford, and Dholaikhal, with a branch line from Gulistan to Sadarghat.

The original plan, which proposed a route from Gabtoli to Narayanganj, had an estimated cost of over Tk60,000 crore.

A senior ERD official said, "The World Bank is providing a grant to prepare the Proforma because it plans to invest in MRT 2. However, the grant may be forfeited if the Proforma process is not completed promptly."

To speed things up, an inter-ministerial meeting will be held today at ERD, chaired by Mirana Mahrukh, additional secretary and acting Wing Chief (World Bank), ERD.

Md Abdul Baquee Miah, director (Planning and Development) at DMTCL, told TBS that the Technical Assistance Project Proforma has already been submitted to the Road Transport and Highways Division and will soon go to the Planning Commission and then to ERD.

He noted that the World Bank requires Technical Assistance Project Proforma approval by August, and the $2.5 million grant can only be secured if all processes are completed in time. This will be a key focus of Thursday's meeting.

He added that the World Bank has shown interest in financing the feasibility study, basic and detailed designs, and is also expected to support the main investment. The total project cost and loan amount will be known after the feasibility and design phases are complete.

MRT 2 route revised

Originally, MRT 2 was planned to run from Gabtoli to Narayanganj Sadar, with proposed stations at Dhaka Udyan, Mohammadpur Bus Stand, Jhigatola, Science Lab, New Market, Azimpur, Palashi, DMCH, Gulistan, Motijheel, Kamalapur, Manda, Dakkhingaon, Damripara, Signboard, Bhuiyaghar, and Jalkuri. A branch line from Gulistan to Sadarghat via Nayabazar was also proposed.

According to DMTCL's initial estimate, the 35km line would cost around Tk60,837 crore.

However, officials said the draft of the Updated Revised Strategic Transport Plan (RSTP) suggests a change in the route. As per the new proposal, MRT 2 will now run from Gabtoli to Demra, excluding Narayanganj. Instead, Narayanganj will be connected through another metro project, MRT 7.

Meanwhile, another metro project, MRT Line 5 (Southern Route), from Gabtoli to Dasherkandi — funded by ADB and Korea — is awaiting final approval.

Although MRT 5 was initially prioritised, the Planning Commission later recommended implementing MRT 2 first, arguing that Dasherkandi is less economically active, while connecting Old Dhaka would benefit far more people due to its population density.
 

Metro rail: 'Favouring Japanese contractors' raises concerns over inflated cost
Anowar Hossain Dhaka
Published: 14 Aug 2025, 08: 09

1755137749466.png

Metro rail File photo

A dispute has arisen over whether contractors from outside Japan will be allowed to work on one of the packages of Dhaka’s MRT Line-1 metro rail project.

It is alleged that attempts are being made to exclude a Chinese contractor that bid for a part of the project (Package-8) through unreasonable conditions. This could limit competition and increase costs.

The Dhaka Mass Transit Company Limited (DMTCL) is responsible for the construction and operation of Dhaka’s metro rail. Tender processes are underway for two new metro lines—MRT Line-1, which will run from Kamalapur to the airport and from Kuril to Purbachal, and MRT Line-5 (North Route), from Hemayetpur in Savar to Bhatara via Gabtoli, Mirpur, and Gulshan.

During the tender process for these two projects, DMTCL has found that its initial cost estimates are likely to double after contractor selection. The total cost for implementing both projects may reach about Tk 2 trillion. Both are funded by the Japan International Cooperation Agency (JICA).

According to DMTCL sources, MRT Line-1 will be implemented in 12 packages. For eight of these, prequalification assessments have been carried out, with the same six Japanese contractors repeatedly participating.

In one package—Package-8—bidders include contractors of Japan, and joint ventures of China-Bangladesh and India-Japan contractors. This package has sparked the current dispute.

DMTCL Managing Director (MD) Faruk Ahmed confirmed receiving complaints regarding Package-8 but assured that no party would be treated unfairly.

Sources said that in Package-8’s prequalification stage, six Japanese contractors and one each from China and India were deemed eligible. Final bids were submitted by Kajima Corporation of Japan (partnered with Bangladesh’s Spectra Construction), Taisei Corporation of Japan (partnered with Samsung of South Korea), and China Civil Engineering Construction Corporation (CCECC), partnered with Bangladesh’s Abdul Monem Ltd and China Railway Bridge Construction Bureau.

However, allegations have surfaced that efforts are being made to declare the Chinese bidder technically unqualified before the financial bids are opened, restricting competition to the two Japanese bidders. This could drive up construction costs.
In April, all three bidders submitted technical and financial proposals. Technical evaluation is now underway; only after that will the financial bids be opened, with the lowest bidder expected to win.

However, allegations have surfaced that efforts are being made to declare the Chinese bidder technically unqualified before the financial bids are opened, restricting competition to the two Japanese bidders. This could drive up construction costs.

In four major work packages of MRT Line-1 where contractor selection is nearly complete, all bids came from two or three Japanese contractors, whose offers exceeded estimates by 125 per cent, or Tk 190 billion. The loan agreements, contract terms, and contractor selection process for Japanese firms began during the previous Awami League government. The interim government has suspended contractor appointments upon seeing the cost overruns.

A DMTCL official, on condition of anonymity, told Prothom Alo that only in Package-8 has a Chinese contractor participated. If both Japanese and Chinese bids were opened, it would become clear whether Japanese contractors are indeed overpricing. Japanese consulting firm Nippon Koei plays a central role in preparing and evaluating tender documents.

Favourable conditions from the start

According to the Ministry of Road Transport, Japanese contractors and consultants gain an advantage due to loan conditions. Tender documents also include methods and technologies that are almost impossible for non-Japanese firms to meet—for example, requiring tunnel construction using the “one pass joint” method, which favors Japanese contractors.

From Kamalapur to the airport, MRT Line-1 will have around 20 km of underground tracks and 14 stations. All tenders for underground work so far have attracted only Japanese bidders. The elevated section from Kuril to Purbachal—about 11.25 km with seven stations—will be built under two packages. Contractor selection for Package-8 is ongoing; the other has yet to start.

Package-8 includes construction of 6 km of elevated tracks and four stations from the Balu River in Purbachal to the Pitolganj depot, plus a 172-meter steel bridge over the Balu River.

DMTCL sources say the tender requires using a special type of Japanese steel for the bridge, produced by only three Japanese companies. Using equivalent steel from other countries would require prior approval from the Japan Road Association.

One such manufacturer is Japan’s Kobe Steel Mill. Chinese contractor CCECC submitted certification from Japanese supplier Shincho Corporation, but during technical evaluation was asked to produce certification directly from Kobe Steel, despite tender documents stating that supplier certification was sufficient.

A DMTCL official noted that the bridge accounts for only 10 per cent of Package-8’s work and is not particularly complex. The additional mid-process requirement may be aimed at preventing non-Japanese contractors from winning.

On 31 July, CCECC lodged complaints with various government offices, including the project director, DMTCL MD, and the Road Division secretary.
MRT Line-1 project director Abul Kashem told Prothom Alo that he had sought the opinion of the government’s Central Procurement Technical Unit (CPTU) after receiving the Chinese company’s complaint, promising fairness and competition.

Costs rising, competition shrinking

Dhaka plans six metro lines. The first, MRT Line-6 from Uttara to Motijheel, is operational, with the extension to Kamalapur under construction. Line-6 has cost Tk 15 billion per km for elevated sections. By comparison, similar elevated metro lines in India cost about Tk 1.5 billion per km, and underground lines about Tk 4.5 billion per km. Other Asian countries also have lower costs than Bangladesh.

For MRT Lines 1 and 5, DMTCL’s cost analysis after receiving bids shows total costs exceeding Tk 30 billion per km. The current interim government is negotiating with JICA to relax loan conditions and reduce costs.​
 

Metro rail eases traffic on Mirpur-Motijheel route​

Metro Rail authorities operate a train from Agargaon to Motijheel as part of the system-integrated test run. Prime Minister Sheikh Hasina is expected to inaugurate this section today. The photo was taken from the Dhaka University area recently. Photo: Rajib Dhar

View attachment 11

Metro Rail authorities operate a train from Agargaon to Motijheel as part of the system-integrated test run. Prime Minister Sheikh Hasina is expected to inaugurate this section today. The photo was taken from the Dhaka University area recently. Photo: Rajib Dhar

Traffic congestion on the Mirpur-Agargaon-Farmgate-Motijheel route has significantly decreased since the Dhaka metro rail operating hours were extended, providing commuters with a more relaxed and faster journey.

However, other busy routes like Uttara-Mohakhali-Motijheel and Uttara-Badda-Motijheel continue to see the same old gridlock.
Service holder Sayma Hoque, who used to spend hours commuting from her Mirpur home to her Motijheel office, now enjoys a one-hour journey, thanks to the metro rail. With reduced traffic on the route, her daily commute has become significantly less stressful.


Deputy Commissioner of the Dhaka Metropolitan Police traffic department's Tejgaon division Mushtaq Ahmed confirmed the decrease in traffic and improved discipline on the metro rail route. However, he acknowledged that the congestion problem persists in other parts of the city.

Since early November of last year, metro rail has begun running between Uttara and Motijheel. However, the trains were only in service from 7:10am until 11:30am. On 20 January, the time was extended to 8:40pm.


The metro rail's 20.1km stretch from Uttara to Motijheel now takes only 31 minutes to cover, a stark contrast to the hours spent battling traffic on the same route before.

This has led to a significant shift in commuter preference, with many opting for the faster and more comfortable metro rail over traditional public transport like buses.

The impact on bus services is evident. Ayat Paribahan owner Khaled Khan reported a 35% drop in passengers on the Mirpur-Motijheel route, forcing some buses to remain parked.

Similar observations were made by Shikar Paribahan bus helper Nur Hossen and ride-share provider Md Kamrul, both of whom have seen a decline in business due to the metro rail's success.

A Bangladesh University of Engineering and Technology survey conducted in 2023 revealed that before the metro rail, 59.41% of passengers used public buses for their commute on the Uttara-Motijheel route. This highlights the significant shift in travel patterns brought about by the metro rail.

While the metro rail has brought relief to commuters on the Mirpur-Motijheel route, congestion remains a major concern in other parts of the city.

Shahidul Islam, a commuter from Banani to Farmgate, told The Business Standard that traffic congestion has worsened in the Mohakhali area, even on the flyover. Similarly, the Uttara-Badda-Motijheel route continues to experience the same level of traffic and passenger pressure.

Mahbubur Rahman, vice-president of the Bangladesh Road Transport Owner Association, acknowledged the drop in bus passengers on the Uttara-Motijheel route, except for those running via Badda-Rampura.

He reported a 50% decrease in income for bus owners on the Mirpur-Motijheel route, with some companies even stopping operations due to the losses.

Rahman expressed the bus operators' commitment to improving service quality to attract passengers back. However, it remains to be seen whether they can effectively compete with the convenience and efficiency offered by the metro rail.

Very impressed with vegetation in the area.
 

Metro rail: 'Favouring Japanese contractors' raises concerns over inflated cost
Anowar Hossain Dhaka
Published: 14 Aug 2025, 08: 09

View attachment 21724
Metro rail File photo

A dispute has arisen over whether contractors from outside Japan will be allowed to work on one of the packages of Dhaka’s MRT Line-1 metro rail project.

It is alleged that attempts are being made to exclude a Chinese contractor that bid for a part of the project (Package-8) through unreasonable conditions. This could limit competition and increase costs.

The Dhaka Mass Transit Company Limited (DMTCL) is responsible for the construction and operation of Dhaka’s metro rail. Tender processes are underway for two new metro lines—MRT Line-1, which will run from Kamalapur to the airport and from Kuril to Purbachal, and MRT Line-5 (North Route), from Hemayetpur in Savar to Bhatara via Gabtoli, Mirpur, and Gulshan.

During the tender process for these two projects, DMTCL has found that its initial cost estimates are likely to double after contractor selection. The total cost for implementing both projects may reach about Tk 2 trillion. Both are funded by the Japan International Cooperation Agency (JICA).

According to DMTCL sources, MRT Line-1 will be implemented in 12 packages. For eight of these, prequalification assessments have been carried out, with the same six Japanese contractors repeatedly participating.

In one package—Package-8—bidders include contractors of Japan, and joint ventures of China-Bangladesh and India-Japan contractors. This package has sparked the current dispute.

DMTCL Managing Director (MD) Faruk Ahmed confirmed receiving complaints regarding Package-8 but assured that no party would be treated unfairly.

Sources said that in Package-8’s prequalification stage, six Japanese contractors and one each from China and India were deemed eligible. Final bids were submitted by Kajima Corporation of Japan (partnered with Bangladesh’s Spectra Construction), Taisei Corporation of Japan (partnered with Samsung of South Korea), and China Civil Engineering Construction Corporation (CCECC), partnered with Bangladesh’s Abdul Monem Ltd and China Railway Bridge Construction Bureau.

However, allegations have surfaced that efforts are being made to declare the Chinese bidder technically unqualified before the financial bids are opened, restricting competition to the two Japanese bidders. This could drive up construction costs.
In April, all three bidders submitted technical and financial proposals. Technical evaluation is now underway; only after that will the financial bids be opened, with the lowest bidder expected to win.

However, allegations have surfaced that efforts are being made to declare the Chinese bidder technically unqualified before the financial bids are opened, restricting competition to the two Japanese bidders. This could drive up construction costs.

In four major work packages of MRT Line-1 where contractor selection is nearly complete, all bids came from two or three Japanese contractors, whose offers exceeded estimates by 125 per cent, or Tk 190 billion. The loan agreements, contract terms, and contractor selection process for Japanese firms began during the previous Awami League government. The interim government has suspended contractor appointments upon seeing the cost overruns.

A DMTCL official, on condition of anonymity, told Prothom Alo that only in Package-8 has a Chinese contractor participated. If both Japanese and Chinese bids were opened, it would become clear whether Japanese contractors are indeed overpricing. Japanese consulting firm Nippon Koei plays a central role in preparing and evaluating tender documents.

Favourable conditions from the start

According to the Ministry of Road Transport, Japanese contractors and consultants gain an advantage due to loan conditions. Tender documents also include methods and technologies that are almost impossible for non-Japanese firms to meet—for example, requiring tunnel construction using the “one pass joint” method, which favors Japanese contractors.

From Kamalapur to the airport, MRT Line-1 will have around 20 km of underground tracks and 14 stations. All tenders for underground work so far have attracted only Japanese bidders. The elevated section from Kuril to Purbachal—about 11.25 km with seven stations—will be built under two packages. Contractor selection for Package-8 is ongoing; the other has yet to start.

Package-8 includes construction of 6 km of elevated tracks and four stations from the Balu River in Purbachal to the Pitolganj depot, plus a 172-meter steel bridge over the Balu River.

DMTCL sources say the tender requires using a special type of Japanese steel for the bridge, produced by only three Japanese companies. Using equivalent steel from other countries would require prior approval from the Japan Road Association.

One such manufacturer is Japan’s Kobe Steel Mill. Chinese contractor CCECC submitted certification from Japanese supplier Shincho Corporation, but during technical evaluation was asked to produce certification directly from Kobe Steel, despite tender documents stating that supplier certification was sufficient.

A DMTCL official noted that the bridge accounts for only 10 per cent of Package-8’s work and is not particularly complex. The additional mid-process requirement may be aimed at preventing non-Japanese contractors from winning.

On 31 July, CCECC lodged complaints with various government offices, including the project director, DMTCL MD, and the Road Division secretary.
MRT Line-1 project director Abul Kashem told Prothom Alo that he had sought the opinion of the government’s Central Procurement Technical Unit (CPTU) after receiving the Chinese company’s complaint, promising fairness and competition.

Costs rising, competition shrinking

Dhaka plans six metro lines. The first, MRT Line-6 from Uttara to Motijheel, is operational, with the extension to Kamalapur under construction. Line-6 has cost Tk 15 billion per km for elevated sections. By comparison, similar elevated metro lines in India cost about Tk 1.5 billion per km, and underground lines about Tk 4.5 billion per km. Other Asian countries also have lower costs than Bangladesh.

For MRT Lines 1 and 5, DMTCL’s cost analysis after receiving bids shows total costs exceeding Tk 30 billion per km. The current interim government is negotiating with JICA to relax loan conditions and reduce costs.​

We produce some very good quality trainset in India at a cost just 60% of cost anywhere else. Australia, canda etc. purchase trainset from India. Propulsion systems are imported by countries like France, Italy and Germany.
 
Very impressed with vegetation in the area.
Yes - this is the former Dhaka Racecourse Maidan (Suhrawardy Udyan) and Ramna Park area. Tree planting is an annual event - it is close to the tree-lined Dhaka University campus.

Suhrawardy Udyan - Dhaka University Campus in the left corner (far off)
1756406546062.png


Ramna Park, which dates back to early 1900's, this is equivalent to NYC Central park in area and pattern
1756406810301.png


Tree-lined Dhaka University campus
1756407005109.png
 
Yes - this is the former Dhaka Racecourse Maidan (Suhrawardy Udyan) and Ramna Park area. Tree planting is an annual event - it is close to the tree-lined Dhaka University campus.

Suhrawardy Udyan - Dhaka University Campus in the left corner (far off)
View attachment 21993

Ramna Park, which dates back to early 1900's, this is equivalent to NYC Central park in area and pattern
View attachment 21994

Tree-lined Dhaka University campus
View attachment 21997

Whosoever has done it deserves complements. There is no other way to beautify a place than planting of trees. A NGO with whom I am associated with has planted over 1.5 lakh trees. I myself has (with my team) planted over 13000 trees in our township and 14000 in total.
 

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