Revised Budget for Dhaka Metro Line 5 Northern Section Proposed to Be Cut by Tk 8 Billion First

en.Wedoany.com Reported - On August 30, the Project Evaluation Committee of the Bangladesh Planning Commission reviewed the first revised development project proposal for the northern section of Dhaka Metro Line 5 and decided to first reduce approximately Tk 8 billion from the existing revised budget, while forming an inter-ministerial committee to continue verifying the costs of each contract package. Dhaka Mass Transit Company Limited (DMTCL) had previously applied to increase the total project cost from Tk 412.3854 billion approved in 2019 to Tk 931.9096 billion, an increase of 125.98%. The amount of Tk 931.9096 billion remains the figure in the revised proposal and has not yet become the final approved budget.

According to the revised proposal submitted by DMTCL, the Government of Bangladesh's contribution is proposed to increase from Tk 121.215 billion to Tk 242.5972 billion, an increase of approximately 100%; the project assistance portion is proposed to increase from Tk 291.17 billion to Tk 689.3124 billion, an increase of approximately 137%. The original project was scheduled for completion in 2028, but the revised proposal extends the project period to 2034, including a one-year defect liability period; DMTCL plans to commence passenger operations in January 2033.

In the revised proposal, DMTCL attributed the cost increase to contractor quotations, exchange rates, domestic and international inflation, labor costs, design adjustments, depot expansion, and changes in the costs of imported equipment and consulting services. The original development project proposal used an exchange rate of Tk 84.50 per US dollar, while the latest revised working sheet uses an exchange rate of Tk 123.82 per US dollar as of July 30, 2026; the inflation rate used in preparing the original budget was 4.7%, while local inflation has at times approached nearly 10% in recent years, and labor costs have risen by approximately 50%–55% compared to the original estimates.

Quotations for some civil works contracts differ significantly from the original budget. Contract Package CP-05 covers the underground main line and station works from east of Mirpur-1 station to Kachukhet station, with an original budget of approximately Tk 34.4271 billion; the project consultant subsequently estimated it at approximately Tk 52.126 billion, and the lowest bid quotation reached Tk 111.7767 billion, equivalent to more than three times the original budget. Contract Package CP-06 had an original budget of approximately Tk 43.6475 billion, with the consultant estimating approximately Tk 61.263 billion and the lowest quotation reaching Tk 155.2702 billion. After several major contract packages received quotations significantly higher than the original estimates, the procurement process stalled for about a year and a half.

The northern section of Dhaka Metro Line 5 extends from Hemayetpur to Vatara, with a total length of approximately 20 kilometers, including 13.5 kilometers of underground line and 6.5 kilometers of elevated line, and comprises 14 stations, including 9 underground stations and 5 elevated stations. The project is divided into 10 major contract packages, covering the depot, underground and elevated main lines and stations, electromechanical systems, rolling stock, track, and automatic fare collection systems. DMTCL previously confirmed that land acquisition for the Hemayetpur depot has been completed, and the tendering, evaluation, and negotiation for depot land development and other contract packages are at various stages.

The project is being implemented by DMTCL and is financed by the Japan International Cooperation Agency. JICA signed loan arrangements for the line in 2020 and 2022, with the first tranche of loans in 2020 amounting to ¥55.696 billion and the second tranche in 2022 amounting to ¥133.399 billion. The second tranche loan agreement designated DMTCL as the implementing agency.