Metro Rail Line-5: Cost being cut by another Tk 2,000 crore

The estimated cost for Metro Rail Line-5 (Southern Route), designed to alleviate traffic congestion in the capital, has been cut by an additional Tk 2,000 crore. Initially estimated at Tk 54,618 crore, the project cost was first scaled down by Tk 6,974 crore to Tk 47,644.80 crore following recommendations from the Planning Commission.

According to the latest revised Development Project Proposal (DPP), the cost has been cut by another Tk 2,141 crore, bringing the final proposed budget to Tk 45,503.76 crore. The project is being funded through loan assistance from the Asian Development Bank (ADB) and Korea's Economic Development Cooperation Fund (EDCF). Official sources confirmed that the revised DPP was submitted to the Planning Commission on August 9.

Under this project, a 17.4 km line will be constructed from Gabtoli to Dasherkandi via Technical, Kalyanpur, Shyamoli, College Gate, Asad Gate, Shukrabad, Karwan Bazar, Hatirjheel, Tejgaon, Aftabnagar, Aftabnagar Center, and Aftabnagar East (Nasirabad). The route will combine elevated and underground sections to connect the eastern and western parts of Dhaka.

Meanwhile, allegations have surfaced regarding attempts to award the construction and supervision consultancy contract to a specific company before formal project approval. The complaint alleges that efforts are underway to favor a syndicate linked to the former Awami League government. A local representative of a competing firm recently filed a complaint with the Prime Minister's Office and relevant ministries, though no visible action has been taken yet.

State Minister for Planning Zonaed Abdur Rahim Saki said that the matter is currently under review.

Project Director Brig. Gen. (Retd.) Mohammad Abdul Wahab previously explained that the original DPP was based on preliminary estimates. Following the completion of the detailed design in 2024, precise cost estimations were calculated, resulting in a lower overall budget. Further cost reductions were made in compliance with the Planning Commission's recommendations.
Breakdown of Expenses Across 9 Major Sectors

The revised expenditure breakdown for the primary components of Metro Rail Line-5 (Southern Route) includes:

Main Line Civil and Station Works, Depot Civil and Building Works: Tk 17,737 crore (37.23% of total cost)

Electrical and Mechanical (E&M) and Railway Systems: Tk 13,258.48 crore (27.83%)

Land Acquisition, Re-acquisition, and Resettlement: Tk 4,979.32 crore (10.45%)

Rolling Stock and Depot Equipment: Tk 4,821.48 crore (10.12%)

Consultancy Services: Tk 1,626.31 crore (3.41%)

Reserve for Commitment Charge on ADB Loan: Tk 150 crore (0.32%)
Vehicle Rental: Tk 101.77 crore (0.21%)
Office Rent: Tk 12.27 crore (0.03%)

Former Planning Secretary Mamun-al-Rashid said that South Korea generally seeks higher returns on its investments. Observing that this is likely Korea's first financing venture in Bangladesh's metro rail sector, he emphasized that their proposals require thorough scrutiny.

He further said that way out must be put in place to ensure local experts acquire the necessary technical expertise from foreign consultants. Furthermore, he stressed that allegations regarding such mega-projects should never be taken lightly, as complainants typically present valid logic and evidence that warrant a proper investigation (into any wrong-doing, if any).