The proposed costs of the MRT Line-1 and MRT Line-5 Northern projects have been cut by Tk9,741.84 crore in the latest restructuring, with their combined cost still exceeding Tk2 lakh crore.
The reductions were made in various components following decisions taken at a Project Evaluation Committee meeting on 30 August. The restructured Development Project Proposals (DPPs), prepared based on the committee’s recommendations, were sent to the Planning Commission on Sunday (13 September).
Earlier, in early August, the Dhaka Mass Transit Company Limited (DMTCL), the implementing agency, had submitted proposals to revise the costs of the two projects upward to Tk2,13,985 crore. The projects, whose implementation began in 2019, were originally estimated to cost Tk93,799.98 crore.
According to the restructured DPPs, the combined cost has now been proposed at Tk2,04,243.25 crore.
The 31.24km MRT Line-1 (Airport-Kamalapur), being financed by the Japan International Cooperation Agency (Jica), is now estimated to cost Tk1,14,394.89 crore, down from the Tk1,20,794.13 crore proposed in August.
Meanwhile, the proposed cost of the 20km Jica-funded MRT Line-5 Northern (Hemayetpur-Bhatara) has been reduced from Tk93,190.96 crore to Tk89,848.36 crore.
Where was Tk10,000cr cut?
The restructured DPPs say costs for major components – including mainline construction, land development and building construction, and electrical and mechanical systems – were reviewed and reduced based on recommendations from technical committees following the 30 August PEC meeting.
Costs for utility relocation, deposit works, office equipment and other equipment were also reassessed and rationalised in line with the PEC decisions.
MRT Line-1 cost up 117.64%
According to the restructured proposal, the cost of the country’s first underground metro rail project, MRT Line-1 from the airport to Kamalapur, is set to increase by 117.64%.
The project was originally approved by Ecnec on 15 October 2019 at an estimated cost of Tk52,561.43 crore.
Under the restructured DPP, the government contribution has been proposed to increase by 133% to Tk30,552.26 crore, while the Jica loan component would rise by 112.53% to Tk83,842.63 crore.
The proposal attributes the cost escalation partly to delays in finalising designs and tender documents caused by the Covid-19 pandemic and procedural complexities surrounding the country’s first metro rail project.
Several major changes were introduced when the project moved from preliminary to detailed design. For example, among other changes, station lengths and widths were revised. While all stations were initially designed to be 250 metres long, some were expanded to improve passenger convenience and operational efficiency. Notun Bazar station, for example, was increased to 670 metres, Kamalapur to 420 metres, Airport to 380 metres and North Badda to 271 metres.
The locations of station entry and exit points and ventilation shafts were also changed. Rajarbagh station was upgraded from a two-storey to a three-storey structure.
A plan to construct around 20km of detour roads was also added to manage traffic during construction.
MRT Line-5 Northern cost up 117.87%
The cost of MRT Line-5 Northern is set to increase by 117.87% under the restructured DPP.
The project had an estimated cost of Tk41,238.54 crore.
Under the restructured DPP, the government funding component has been proposed to increase by 84.22% to Tk22,330 crore, while the Japanese loan component would rise by 131.89% to Tk67,518 crore.
One of the project’s main objectives is to build and operate an approximately 20km MRT corridor from Hemayetpur to Bhatara. The Hemayetpur-Amin Bazar section will be elevated, while the Amin Bazar-Bhatara section will be underground because it passes through densely populated areas.
The project was originally targeted for full operation by 2028. Under the new proposal, the completion deadline has been pushed back to 2032.
MRT Line-5 Southern to cost Tk45,503cr
Meanwhile, the 17.20km MRT Line-5 Southern project, including a 13.10km underground section, has been estimated to cost Tk45,503 crore.
The ADB- and South Korea-funded project will be placed before the Executive Committee of the National Economic Council (Ecnec) on Wednesday for final approval.
ADB and South Korea will provide Tk30,306 crore in loans, while the remaining Tk15,197 crore will come from the government treasury.
The route will extend from Gabtoli to Dasherkandi through underground and elevated sections.
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