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JICA CONTRACTS ON METRO-RAIL PROJECTS

Dhaka continues attempts to revise overpriced bids

Reminder soon as Japanese financier mum on correction letter: DMTCL chief


FE REPORT | December 02, 2025 00:00:00


Dhaka Metro Rail Company continues its effort for negotiating over-priced quotations in various contracts of metro-rail projects and will soon send a reminder to the projects' Japanese financier.

Managing Director of Dhaka Mass Transit Company Limited (DMTCL) Faruque Ahmed explained the move during monthly press conference in the DMTCL conference room Monday in response to a question about JICA rejection of request for cancellation of tender.

He says negotiation is a continuous process and a journey and DMTCL continues it to modify conditions.

"Yes, JICA has responded to our letter and against the letter we reiterate the demand to give us scope of cost optimization," the MD clarifies, adding that the negotiation journey will be continued through sending another letter.

He admits that he might not be able to complete the procedures but the negotiation will continue to stop "misuse of taxpayers' money and save next generations from paying for loan burden".

Raising the points that each and every contract has different languages, different depths, different contexts and different formations as dynamic document, he says contracts can be modified.

"If the projects are delayed for two or three months, it does not mean end of our vision," says Mr Faruque, asserting that all the metros will be implemented at any cost.

The company MD, who took the state-owned company's charge last February through selection procedure for his experience in mass-transit-system development in different countries, including Hong Kong, also cites example of the World Bank which once had withdrawn from funding in the country but the environment changed.

"All environments are changeable, likewise no contract is final," the company MD states to substantiate the move on deal revision.

On the question of cost optimization, he says DMTCL continues on the scope of shopping centres at some stations and station plazas by not dropping it from the revised development project proposal to reduce project cost of Mass Rapid Transit Line 6.

He says as station locations of Bijoy Sarani, Farmgate and Dhaka University were shifted from the original location of DPP and Station Plaza is being built under the Multimodal Transport Hub, all these components were dropped from the RDPP.

Mr Faruque, however, says net saving of the funds has not practically taken place due to delay of the project as overhauling will be necessary within the project's extended time besides some other issues.

He also speaks about DMTCL works to increase revenue from non-fare earning and has already signed new agreements through open tender increasing 30-percent more revenue from this sector.

Sharing plans of development of all MRT projects, the MD says Diabari-to-Tongi part of the MRT 6 might be delayed for not getting solid proposal. The WB grants for MRT 4 have been received to train 100 DMTCL staff members in the country for readying them to work for the project in six to nine months.

He hopes to get ECNEC approval for the MRT 5 South during the interim government's time and say the MRT 1 and MRT 5 North are under scrutiny to find ways for negotiations to reduce the costs.

The MD informs that a high-level South Korean delegation is likely to be here to explore scope of opening rolling-stock-assembling plant in the country for ensuring supplies to the metro rails.

Regarding the Sunday incident, he says necessary inspection of the MRT-6 line has been conducted and investigation has been carried out through viewing the CCTV footage.

But, he adds, for reason still not confirmed, the DMTCL data show reduction of 10-percent passengers after the bearing-pad accident. This might be related to bearing pad, earthquake, the closure of educational institutions or election, which DMTCL is studying.

smunima@yahoo.com


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