Metro Expansion Costs More Than Double Previous Line

The construction cost per kilometre for two new metro lines in Dhaka is set to exceed twice that of the existing Uttara–Motijheel route, raising concerns over affordability and project feasibility. The Uttara–Motijheel Metro Rail, officially known as Line-6, incurred a construction cost of BDT 1,574 crore per kilometre. In comparison, the new lines are estimated to cost BDT 3,618 crore per kilometre, more than double the earlier figure.

Although the government has not yet finalised its decision on proceeding with the expensive projects, planning for these new lines has been underway for several years. Line-6’s contractor selection began in 2015, alongside plans for five additional metro corridors across the city. Two of these lines are awaiting construction:

MRT Line-1 (31+ km) – from Kamalapur to Hazrat Shahjalal International Airport, and from Nadda to Purbachal.

MRT Line-5 (North, ~20 km) – from Hemayetpur in Savar through Mirpur and Gulshan to Bhatara.

Both lines are designed as a combination of elevated and underground tracks.

The steep cost escalation is largely attributed to specific conditions imposed by the Japanese funding agency JICA (Japan International Cooperation Agency). These technical and procedural requirements have limited the pool of eligible contractors, effectively reducing competition and inflating costs. According to Dhaka Mass Transit Company Limited (DMTCL), which oversees the construction and operation of Dhaka Metro Rail, the higher costs could place additional financial pressure on passengers through increased fares and also add to the government’s debt burden.

The total projected cost for these two new lines is BDT 1,84,500 crore, prompting analysts to describe the projects as “financially daunting.” Experts argue that if competitive bidding were opened beyond Japanese contractors, costs could be significantly reduced.

DMTCL Managing Director Faruk Ahmed echoed these concerns, emphasising that the high expenditure is a direct consequence of JICA’s stringent conditions favouring Japanese contractors. As a result, the upcoming government, elected under the Bangladesh Nationalist Party (BNP), will inherit the responsibility of deciding whether to proceed with these costly lines.

The situation underscores a broader challenge for Dhaka’s rapid transit expansion: balancing the urgent need for modern urban transport with fiscal prudence, while ensuring that construction contracts remain competitive enough to avoid excessive cost inflation.