Like MRT Line-1, another JICA-funded metro rail project—MRT Line-5 (North)—is also underway. It will run from Hemayatpur in Savar to Gabtoli, Mirpur and Gulshan to Bhatara. The Hemayatpur-Gabatoli section will be elevated, while the rest will be underground. The total length is about 20 kilometers.
The project was approved in October 2019 with an estimated cost of Tk 412.38 billion. An analysis of contractors’ bids for the five packages shows that the cost could rise to Tk 880 billion. The depot work in Hemayatpur is nearing completion, but due to increase in cost, the appointment of contractor for the remaining work is on hold.
Ministry sources said discussions on next steps for Line-5 (North) have not yet gained momentum and its future largely depends on decisions regarding Line-1.
JICA is also the lender for the North-Motijheel Metro Rail, which will be extended up to Kamalapur. The total length is 21.26 kilometres, and work is ongoing on the Motijheel-Kamalapur section. The total cost is Tk 334.72 billion, or Tk 15.74 billion per kilometer – this is also subject to debate.
If the projects go ahead based on contractor bids, the combined cost of the two new lines (Line-1 and Line-5) will reach Tk 1.85 trillion. DMTCL’s analysis of metro projects in other Asian countries shows that excluding land acquisition and salaries, metro construction costs in India range from Tk 1.50 billion to Tk 4.50 billion per kilometre. India also uses foreign loans but does not impose conditions restricting competition in contractor selection.
Professor Shamsul Haq of the civil engineering department at Bangladesh University of Engineering and Technology (BUET) said the main issue is the lack of real competition due to Japanese loan conditions. Ensuring competitive bidding will significantly reduce costs.
They raised two key questions: whether JICA would relax its conditions to allow competition, and if not, whether the government would proceed with higher costs and an increased debt burden.
Currency devaluation and rising commodity prices are not issues limited to Japanese or contractors from any specific country; They apply to everyone. The Government will accept bids received through effective competition. But in a controlled tender process, the government cannot set the right price, Shamsul Haq said.