A sum of US$3.5 billion is assured by the Asian Development Bank (ADB) for bankrolling Dhaka metro's MRT-5 southern route for expansion of overhead transport facility aimed at easing city-traffic tailbacks
As hinted during a meeting between an ADB team and the Economic Relations Division (ERD) Thursday, officials said Friday, the Manila-based lender would provide US$2.5 billion worth of loan and mobilise another chunk of $1.0 billion in credit from any foreign lenders as co-financers of the MRT-5 project.
The offer comes apparently as a matter of solace at this hour of a prolonging crunch time as Bangladesh is in need of foreign investment to buttress the country's depleting foreign-exchange reserves and inexorable inflation that is pushing up prices for expensive imports.
Dhaka Mass Transit Company Limited (DMTCL) will construct the MRT-5 (south) from Gabtoli to Dasherkandi via Kalyanpur-Russell Square-Rampura-Aftabnagar-Dasherkandi at a proposed cost of Tk530 billion, equivalent to $5.0 billion.
"We sat with the ADB mission Thursday. The lender has assured us of mobilising $3.5 billion worth of funds. Out of the amount, ADB alone will provide $2.5 billion," a senior ERD official told the FE.
Meanwhile, the construction of the MRT-5 northern route stretching over Hemayetpur-Mirpur 10-Banani-Gulshan-Vatara has already been started with the financial support of Japan.
The proposed 17.40-km metro rail MRT Line-5 southern route from Gabtoli to Dasherkandi will be ready by 2030. Out of this route, some 12.80 kms will be install underground and 4.60 kms elevated, the DMTCL officials said.
According to the company officials, 16 stations will be constructed with 12 underground and the rest elevated over the ground.
The stations are Gabtoli, Technical Junction, Kalyanpur, Shyamoli, College Gate, Asad Gate, Russell Square, Panthapath, Sonargaon Hotel, Hatirjheel West, Niketan, Rampura, Aftabnagar West, Aftabnagar Central, Aftabnagar East, and Dasherkandi.
Another ERD official said they had suggested revisiting the estimated cost of the project as it is higher than the same project being implemented in India and other countries.
The feasibility study for the MRT-5 southern route was conducted in November last year where some $5.5 billion was estimated as the total project cost for the 17.40km line.
"We need the ADB loan. We will sit for negations shortly to confirm the loan. At the same time, we are hopeful of reduction in the total project cost, proposed by the ADB-financed feasibility study last year," he adds.
The MRT-5 southern route is expected to help ease nagging traffic congestion in Dhaka city.
Besides the metro rail, Dhaka elevated expressway's first part is opening to traffic also to leapfrog the jammed roads below.
Transport experts stress full execution of the stalled bus-route franchise to rid the crammed city of traffic congestion as well as air and noise by the same stroke.
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