Dhaka Metro Rail Cost Surges to Over Tk 2 Trillion: Causes and Concerns

The estimated cost of two major Dhaka metro rail projects has more than doubled, rising from an initial projection of Tk 938 billion to Tk 2.13985 trillion, according to revised proposals submitted by the Dhaka Mass Transit Company Limited (DMTCL) to the Planning Commission. The proposed increase is now under review by government authorities, with a technical committee’s report endorsing the higher costs as justified.

The two projects, MRT Line-1 and MRT Line-5 (Northern Route), are part of Bangladesh’s expanding urban transit network aimed at easing traffic congestion in the capital. MRT Line-1 will connect Kamalapur to Hazrat Shahjalal International Airport, combining elevated and underground sections, including a stretch from Nadda to Purbachal. MRT Line-5 (Northern Route) will run from Savar through Gabtoli, Mirpur, and Gulshan to Bhatara, also featuring mixed elevated and underground segments.

Officials at DMTCL, operating under the Road Transport and Bridges Ministry, cited multiple factors behind the cost surge: revisions to detailed designs, inflation, currency devaluation, delays, and technical modifications. The agency has already completed depot construction and is in the process of contractor appointments. The revised development project proposals were sent to the Planning Commission for approval after a technical committee, led by former BUET professor Shamim Z Bosunia, concluded that the cost escalation was unavoidable due to macroeconomic pressures and design expansions.

Financing for both projects comes from the Japan International Cooperation Agency (JICA), which has been engaged in multiple discussions with Bangladeshi authorities over cost adjustments. A seven-member technical committee reviewed the projects and affirmed that the cost increases—ranging from 130% to 160% over original estimates—were justified by global inflation, a 38% rise in the US dollar’s value against the taka, and expanded project scope. The Planning Commission is scheduled to evaluate the revised proposals today.

Transport Minister Sheikh Robiul Alam emphasized the necessity of metro rail for Dhaka’s survival, noting that postponement would only drive costs higher. Under revised estimates, MRT Line-1’s cost has jumped from Tk 525.61 billion to Tk 1.20 trillion, making it the second-most expensive infrastructure project in Bangladesh after the Rooppur Nuclear Power Plant, at Tk 38.66 billion per kilometre. MRT Line-5’s cost has risen from Tk 412.39 billion to Tk 931.91 billion, or about Tk 46.6 billion per kilometre.

Critics point to conditions set by JICA that limit competition in contractor selection. Professor Shamsul Hoque of BUET argued that costs would remain high unless the tender process allowed broader participation. He acknowledged that some cost increases were natural due to inflation and design changes but cautioned against “astronomical” figures driven by restricted competition.

The projects remain central to Dhaka’s urban mobility strategy, with Line-1 already under partial construction and both routes expected to reduce congestion and improve connectivity across the city.

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