Metro rail project costs more than double

The Planning Commission has demanded a reduction in costs after expenditure on metro rail construction on two routes in the capital increased by more than double.

In 2019, the initial cost of the MRT Line-1 and the northern section of Line-5 projects was estimated at Tk 93,800 crore. In the new proposal, it has risen to Tk 213,985 crore. Costs have increased due to various reasons including design changes, rise in construction material prices, and the increase in dollar exchange rates.

One section of MRT Line-1 will run from the airport to Kamalapur. The other will run from Nadda to Purbachal. Line-5 will go from Savar to Gabtoli, Mirpur, Gulshan, up to Bhatara. Both routes will be a combination of underground and elevated sections.

However, Road Transport and Bridges Minister Sheikh Rabiul Alam has called the additional costs justified. He said that even in developed countries, rail lines are being constructed at similar costs. Still, efforts will be made to reduce the expenditure.

Experts are questioning whether the project cost is justified under JICA financing. Communications expert Dr. Md. Hadiuzzaman said that costs are leaping up because of the condition that only Japanese firms can participate in the tender.

Experts have advised increasing negotiations with lenders to control costs of large projects like metro rail.