The Dhaka Mass Transit Company Limited (DMTCL), the first-ever government-owned company to run mass transport system in the capital, has started functioning with a limited capacity after a delay of nearly two years.
The Dhaka Mass Rapid Transit (DMRT) Project officials said, as part of the company's functions, the first board meeting was held on Sunday with the participation of 10 members out of 11.
They said the company was formed one and a half years back but its operation could not be started due to lack of ignorance to start the government-owned company and run a new kind of high-capacity transport system.
The first metro rail, known as Mass Rapid Transit line-6 (MRT-6), has been planned to be set up on elevated way from Uttara to Motijheel via Pallabi with an investment of US $2.7 billion.
Sixty per cent of the fund is to be provided by the Japan International Cooperation Agency (JICA) as it recommended formation of the company to implement and run the MRT line commercially.
Sixty per cent of the JICA's fund has also been recommended to be re-lent as loan to the company at nominal interest and 40 per cent as equity.
However, sources said though the company formation was completed early 2013, its function could not be begun due to lack of fund as there was no allocation for it in the budget for carrying out its initial work.
According to the Article of Association and Memorandum of Association, the DMTCL is supposed to be run with a capital of Tk 100 billion giving 98.8 per cent share to the Road Division, now the Road Transport Division under the Ministry of Road Transport and Bridges.
The cabinet endorsed the DMTCL on January 20, 2013 to clear the way for its registration.
Other shares are to be equally owned by other ministries and agencies that comprise Dhaka Transport Coordination Authority, the Prime Minister's Office, finance, railway, home, local government ministries, the power division and the DMTC.
Sources said the DMRT Project Office, which is now implementing the ground work of the MRT project, earlier planned to hold the board meeting of the company during the last fiscal year but it could not do so due to lack of fund.
Sources said designated representatives from members of the PMO, the Finance Division, the Local Government Division, the Energy Division, the Railway and the DTCA attended the first meeting which was presided over by Road Transport Division Secretary MAN Siddique.
During the meeting, the project director (PD) of the DMRT informed about the progress of the project including the necessity of manpower and training to make them capable to implement the MRT line-6 and operate on commercial basis.
However, when asked, the PD said the company's full functioning will start after getting guidelines from the Institutional Development Consultant.
He said Japanese consultant Oriental Consultant Limited started working from September last to prepare organogram, propose manpower and other details for formation of the company.
The PD, who is also acting as the Managing Director of the DMTCL said the company will also continue to work for implementing future MRT lines to be planned after the revision of the Strategic Transport Plan.
smunima@yahoo.com