MRT-1, MRT-5 costs cut by Tk4,800cr

The Planning Commission has cut about Tk4,800 crore from the proposed revised costs of two major Dhaka metro rail projects, with a further review under way to identify scope for additional savings.
At a Project Evaluation Committee (PEC) meeting on Sunday, the proposed cost of the MRT Line-1 project was reduced by Tk4,000 crore, while Tk800 crore was cut from the MRT Line-5 Northern project, a senior Planning Commission official told the Daily Sun.
The commission has also formed a committee to examine the costs further and identify areas where expenditure can be rationalised, the official said.
Md Ali Reza Siddiquee, additional secretary of the Road Transport Wing of the Physical Infrastructure Division at the Planning Commission, has been appointed head of the committee.
The committee will begin its work today and conduct a further review of the project costs, the official said.
The latest move comes amid growing concern over the sharp rise in the estimated costs of the two projects, whose combined revised costs were proposed at more than Tk2.13 lakh crore.
The MRT Line-1 project, which will connect Kamalapur with Hazrat Shahjalal International Airport and Nadda with Purbachal, was initially estimated at Tk52,561 crore in 2019. Its revised cost proposal submitted to the Planning Commission stood at Tk1,20,794 crore.
The MRT Line-5 Northern project, planned to connect Savar with Bhatara via Gabtoli, Mirpur and Gulshan, was initially estimated at Tk41,239 crore, while its revised cost was proposed at around Tk93,191 crore.
Both projects are being implemented with assistance from the Japan International Cooperation Agency (JICA).
The proposed cost increases have been attributed to changes in detailed designs,
higher construction material prices, inflation, exchange-rate movements, additional taxes and VAT, land acquisition, utility relocation, consultancy costs, construction-period interest and other expenses.
In May, a seven-member technical committee headed by former BUET civil engineering professor Dr M Shamim Z Bosunia was formed to review the proposed cost increases and recommend ways to rationalise expenditure. The committee submitted its report in July, finding the higher costs broadly justifiable.
The Planning Commission, however, is now seeking further scope to reduce expenditure before approving the revised development project proposals.
MRT Line-1 will comprise more than 31km of elevated and underground tracks and 21 stations, while MRT Line-5 Northern will cover about 20km with 14 stations.
The latest initiative reflects the government’s efforts to implement the two major infrastructure projects at more reasonable costs while retaining their core objectives.