The government has decided to revive Dhaka's long-delayed metro-rail-expansion projects in a major push to strengthen the capital's public transport system and ease chronic traffic congestion.
The decision signals a renewed commitment to expanding the city's mass rapid transit network after months of uncertainty over soaring costs and procurement concerns.
The government now wants to fast-track work on MRT Line-1 and MRT Line-5 projects through revised project proposals, fresh negotiations with development partners and more competitive bidding processes, officials said on Wednesday.
A high-level meeting at the Ministry of Finance (MoF) on the day gave the go-ahead to the delayed MRT construction projects as the authorities seeks to make the mass transport system available to commuters as quickly as possible, they said.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury chaired the meeting at his office and held discussions with relevant companies, agencies and officials to work out the way forward for the previously approved MRT-1, MRT-5 (Northern Route) and MRT-5 (Southern Route) projects.
The minister asked the authorities concerned to negotiate with the funding agency, the Japan International Cooperation Agency (JICA), and revisit the existing Development Project Proposals (DPPs).
Moving swiftly to meet growing public demand for expanded mass transport facilities, the government directed the implementing agencies to immediately prepare a roadmap for the three projects.
The ambitious infrastructure projects, originally approved under the previous administration, faced major setbacks during the interim government period.
Construction and procurement activities were suspended following a comprehensive review that identified unusually high bid prices and procedural irregularities in the procurement process.
Officials said some proposals submitted by international contractors were nearly double the original project estimates.
Keen to expand the metro rail network to ease Dhaka's chronic traffic congestion, the minister instructed the authorities concerned to begin fresh negotiations with JICA and the contractors that had submitted bids for MRT-1 and MRT-5 projects.
He also directed officials to revise and update the existing DPPs to ensure cost rationalisation, transparent bidding procedures and strict compliance with governance standards.
The minister emphasised the use of locally available materials instead of imported Japanese materials in an effort to reduce unusually high project costs, officials from the MoF and Roads and Highways Division said.
According to officials present at the meeting, the revised strategy will focus on making procurement more competitive and transparent while addressing the construction and financial design weaknesses that had previously stalled progress.
With policy approval now secured, Dhaka Mass Transit Company Limited (DMTCL) and the relevant ministries and agencies are expected to accelerate administrative revisions to pave the way for the resumption of physical work on the projects.
Officials said Japanese contractors had submitted bids for Dhaka's MRT Line-1 and MRT Line-5 (Northern Route) projects that ranged from around 90 per cent to more than 390 per cent higher than the government's original estimates. As a result, the projected cost of the two metro lines rose to nearly Tk 1.84 trillion, more than double the initially approved budgets.
For MRT Line-1 between Airport, Kamalapur and Purbachal, the original estimated cost was Tk 525.61 billion. However, contractor bids pushed the projected cost to nearly Tk 960 billion.
For the CP-02 and CP-05 packages, Japanese bidders quoted prices up to 172 per cent and 26 per cent higher than official estimates, government officials said.
The government had earlier approved the 20-kilometre MRT Line-5 (Northern Route) from Hemayetpur to Bhatara at a cost of Tk 412.39 billion.
Meanwhile, the Asian Development Bank-funded MRT-5 (Southern Route) project was not approved by the interim government because of high projected costs and funding constraints at the state exchequer.
However, the meeting on Wednesday has instructed DMTCL to proceed with project preparation and related work under an open and competitive bidding system, said a senior Roads and Highways Division official.
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