The implementation cost of two major mass rapid transit initiatives in Dhaka is projected to skyrocket by BDT 121,424 crore. The Dhaka Mass Transit Company Limited (DMTCL) has forwarded proposals to the Planning Commission seeking executive approval for the staggering budget expansion, which more than doubles the initially authorised expenditure for MRT Line-1 and MRT Line-5 (Northern Route).
Alongside the financial adjustments, the executing agency has requested substantial extensions to the construction timelines, proposing delays of five and six years respectively. These transit corridors are designed to streamline commuter connectivity across the northern, southern, and eastern sectors of the capital. Physical infrastructure divisions within the Planning Commission are currently evaluating the rationale behind the inflated estimates.
To scrutinise the cost escalation, the government established a seven-member independent expert committee in May. The panel submitted its findings to authorities earlier this month, attributing the massive budget revisions to currency depreciation, domestic inflation, and newly imposed import duties on construction raw materials.
Professor Shamim Z. Bosunia, a former Bangladesh University of Engineering and Technology academic who headed the expert committee, explained that project estimates formulated half a decade ago no longer align with current economic realities. Unlike neighbouring nations such as India, where essential raw materials like steel, cement, and aggregate are locally sourced, Bangladesh relies heavily on imports. Consequently, comparing local civil engineering expenses directly with Delhi or Kolkata remains unfeasible.
The pioneering underground metro initiative, MRT Line-1, accounts for a substantial portion of the revised expenditures. DMTCL has proposed increasing the budget by nearly 130 percent to BDT 120,794 crore, compared to the original 2019 National Economic Council approval of BDT 52,562 crore. Spanning an airport-to-Kamalapur underground section and an elevated Purbachal branch, the network aims to accommodate roughly 800,000 daily passengers. Japan’s International Cooperation Agency is financing a significant portion of the venture, though soaring contractor bids and shifting exchange rates have driven costs upward.
Similarly, the MRT Line-5 Northern Route connecting Hemayetpur to Bhatara faces a 126 percent budget increase, pushing projected expenditures to BDT 93,191 crore. Stretching across twenty kilometres with a mix of underground and elevated tracks, the line is engineered to serve 550,000 commuters daily. Planning officials continue to assess the revised development project proposals to ensure fiscal transparency before final ratification.
