Dhaka metro rail company has sought more than one-third of the proposed MRT-5 South line project cost for the less important and associated works, causing the Planning Commission (PC) officials to raise their eyebrows.
Of the Tk447.21 billion costs estimated for the Gabtoli-Dasherkandi project, the Dhaka Mass Transit Company Limited (DMTCL) sought nearly Tk 134 billion, or more than 30 per cent, for such works, insiders said on Saturday.
They said the company mentions spending on consultancy, house rent, honorarium, office rent, salary, car rent, fuel oil, registration fees, training, residential and office building constructions, land acquisition, and resettlements works.
The DMTCL has recently proposed to spend around 70 per cent of the total estimated cost for the main structure of the MRT line and procurement of the rolling stocks.
The huge amount of money would be spent for the less important and allied works, which is really higher, said a senior PC official. "We can build another tunnel like Karnaphuuli with that amount," he added.
The Karnaphuli Tunnel was constructed under the Karnaphuli River in Chittagong at a cost of Tk 106.89 billion.
Meanwhile, the PC expressed its reservation over the MRT-5 south project for its bloated cost, conflict with ongoing MRT-5 North line project and prioritisation problems.
Although the DMTCL is now constructing the MRT-5 north from Hemayetpur to Vatara, it proposed the southern route with the massive cost.
The PC had suggested building first the MRT-2 (Gabtoli-Dhaka Udyan-Mohammadpur Bus Stand-Jigatola-Science Lab crossing-New Market-Azimpur-Plassey-DMCH-Gulistan-Motijheel-Kamalapur).
Before the July-August uprising, the DMTCL sought approval for the MRT-5 south development project proposal (DPP) at a cost of Tk 546.19 billion.
When the PC expressed its reservation over the bloated cost and raised questions about the priority, the DMTCL has revised down the cost to Tk 447.21 billion recently and sent it to the PC again for approval.
Of the cost, the Asian Development Bank (ADB) and Korean EXIM Bank would provide Tk 323.33 billion in loans for building the 4th line after the MRT-6, MRT-1, and MRT-5 North lines in Dhaka city.
The remaining Tk153.88 billion would be provided from the internal resources.
On February 16 last, the PC held its Project Evaluation Committee (PEC) meeting on the Tk 447.21 billion cost again and gave green signal, suggesting further recast of the DPP.
A couple of officials involved with the project approval process, told the FE that the DMTCL has now proposed over Tk 40 billion costs from the revenue budget.
From the capital expenditure, the DMTCL has proposed 37.69 per cent of Tk179.89 billion worth of funds for constructing the main line, stations and depots of the 17.20 km line.
It has also proposed to spend 22.13 per cent or Tk 129.46 billion for installing the E&M and railway system, and 9.76 per cent or Tk 46.57 billion for rolling stock and equipment for the depots.
On the other hand, the state-run MRT service provider has proposed Tk 16.24 billion only for the consultancy works, Tk 50.79 billion for land acquisition, Tk 29.95 million for training, Tk 492.99 million for licence fees, Tk 135.05 million for office rent, Tk 1.02 billion for hiring transport, Tk 106.04 million festival allowance, Tk 441.41 million for paying officers, Tk 268.82 million for house rent allowance and Tk 9.31 billion for relocation of utility service line.
The DMTCL has also proposed different types of less important works like furniture, research and development, decoration of office, computer, fax, telephone procurement, office equipment, stationary, hiring security services, seals and stamps, printing and publications, honorarium for meetings, etc.
"We are borrowing a huge amount of money from the ADB and Korean EXIM Bank for the MRT-5 South project. But if we spend that money for less important and non-priority work, our debt burden will rise," said a PC official.
kabirhumayan10@gmail.com
© 2025 - All Rights with The Financial Express
