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Viability could be at risk for cost escalation with commitment fees

Second, third MRTs stuck in slow lane

FHM HUMAYAN KABIR | October 26, 2023 00:00:00


City-dwellers may have to wait 6-7 years more for construction of the second and third metro-rail lines, meant for relieving Dhaka's traffic tailbacks, after the lapse of four years already.

Sources have said these two routes of the mass rapid transit (MRT) system in the capital have almost hit the dead end, as the construction company DMTCL couldn't yet start physical works.

The physical construction works of the MRT-1 and MRT-5 have yet to start although the government approved both the projects four years ago, insiders said Wednesday.

Meanwhile, Japanese lender JICA had confirmed the project loan for the MRT lines couple of years ago.

Yet, the sources said, Dhaka Mass Transport Company Limited (DMTCL) has not only failed to begin the physical works, it surrenders allocations in the annual development programme (ADP) for both the development works.

But, prior to commencing the MRT-1 physical work even after three years, DMTCL proposed deducting around Tk 17.92 billion that is about 79 per cent of the total allocation of Tk 22.76 billion for FY2023.

Meanwhile, the MRT-5 project got Tk8.0 billion worth of allocation in FY2023 for the phased works, which was revised down by 49.24 per cent to Tk 4.06 billion in the revised development budget for the same year.

In October 2019, the Executive Committee of the National Economic Council (ECNEC) approved MRT Line-5 (Northern Route) worth Tk 412.38 billion to develop rapid metro transit connecting Hemayetpur and Bhatara via Gabtoli, Mirpur-1, 10 and 14, Banani, Gulshan-2 and Natun Bazar. It also approved the MRT-1 development project costing Tk 519 billion.

The state-run DMTCL will build the proposed underground metro rails -- 31-kilomtre MRT line-1 -- from Airport to Kamalapur, and 20km MRT line-5 from Hamayetpur to Vatara of Dhaka city.

A senior Economic Relations Division (ERD) official says if DMTCL fails to start the project work in time, the government has to pay 0.2-percent commitment fee on the undisbursed amount of total loan confirmed by JICA for those projects.

"Besides, if the project-executing agency fails to start commercial operation of the MRTs before the grace period of the loan will have run out, economic and financial viability will be challenging," the ERD official said.

A DMTCL official told the FE that they had yet to complete the tendering process to select the contractors for starting construction of the MRT lines in question.

"We have shortlisted some pre-qualified bidders for the MRT-1 project. And those will be sent to JICA for getting concurrence. Then we will seek financial proposal from the bidders for the physical construction works," a senior DMTCL official says.

"For the MRT-5 (northern route), we have signed agreement with a contractor for land acquisition and development at Hemayetpur, the starting point of the mass transit." The tender process of the MRT-5 has already been started, the official said.

Asked about the apparent procrastination, another DMTCL official told the FE that they were trying to start the physical work of the MRTs within next year.

"Actually, we are mobilising our entire tools and strength so that the physical works are completed within a shorter possible time. When everything will be ready, then we will go for the underground and elevated construction works for metro lines. It will take maximum 4 years to complete," he said.

Meanwhile, DMTCL has already completed the first phase of the MRT-6 line from Uttara to Agargaon which started commercial operation in December 2022.

The remaining portion from Agargaon to Motijheel of the line is expected to start operation early next month as per a deferred timeline.

kabirhumayan10@gmail.com


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