Underground metro faces cost overruns of Tk2,316cr

The Mass Rapid Transit (MRT) Line 1 project is facing a cost overrun of around Tk2,316 crore or 4.41%, owing to a hefty hike in land acquisition costs.

The country's first underground metro rail line – from Airport to Kamalapur with an elevated line from Natun Bazar to Purbachal – will require an additional 39.17 acres of land, leading to a 98% rise in the land acquisition cost from the initial estimate.

The increased cost estimation was discussed in the second meeting of the Project Implementation Committee held recently with the Managing Director of the Dhaka Mass Transit Company Limited MAN Siddique in the chair, according to the minutes of the meeting disclosed on 22 March.

Infographic: TBS

At the meeting, project officials said upon the Planning Commission's approval, the additional cost will be drawn from existing funds meant for other expenses of the project. This additional cost will also be adjusted in future revisions of the project.

Project Director Abul Kashem Bhuiyan said the acquisition of more land is required for building exit and entry points at stations, substations, fire exits, one-lane entry road for the depot, transit-oriented development hub, and station plazas.

There is a provision for an additional expenditure of up to 5% of the total project cost without revising the project, subject to the Planning Commission's approval, he added.

The meeting documents revealed that the project has a provision of Tk2,355 crore to acquire 97.15 acres of land, including resettlement and rehabilitation.

Another 39.17 acres of land will be required to complete the development of the metro line within the set timeline. Hence, Tk4,670.62 crore is needed to complete the acquisition, resettlement, and rehabilitation of 136.32 acres of land.

At the meeting, project officials said at least one transit-oriented development hub and four station plazas will be constructed along each metro line. For that, the additional land, 18 acres of which are owned by Rajuk and 9 acres privately owned, must be acquired and transferred.

Md Mahmud Hasan, director of the Implementation Monitoring and Evaluation Division (IMED) under the Ministry of Planning, stressed the need for an inter-ministerial meeting to expedite land transfer, as various government departments, organisations, and institutions do not readily agree to land transfers, leading to delays.

MAN Siddique, at the meeting, highlighted the challenge of Rajuk's allocation of land adjacent to the Natun Bazar Metrorail Station, saying previous experience shows that a delay in land acquisition causes a delay in project implementation.

The Executive Committee of the National Economic Council (Ecnec) approved the project in October 2019, with an estimated cost of Tk52,561.43 crore.

The Japan International Cooperation Agency (Jica) will provide Tk39,450.32 crore, about 75.06% of the project cost.

The project will develop 31.24km of the metro rail, of which 19.87km (Airport-Kamalapur) will be an underground line and the remaining 11.37km (Natun Bazar-Pitolganj) will be elevated.

Twelve stations will be underground and nine above ground for the elevated part. Physical work of the project started this February, with soil improvement and land development in depot areas at Pitolganj adjacent to Purbachal.

MRT Line 5 construction defers

Meanwhile, the planned start of construction of the MRT Line 5 – the southern route – in June next year has become uncertain due to the non-completion of its engineering design on time.

The 17.4km metro rail will be constructed from Gabtoli to Dasherkandi via Asad Gate, Panthapath, Hatirjheel and Aftab Nagar.

According to officials of the Dhaka Mass Transit Company, a supporting project was taken up in 2020 at a cost of Tk408 crore to prepare the proposal of the main MRT Line 5 project by June this year.

This side project, funded by the Asian Development Bank (ADB), involves a number of surveys and designs.

Although the engineering design of Line 5 was scheduled to be completed by March this year, about 8% of the work is still incomplete. That is why an extension for the side project deadline has been proposed up to June next year.

Project Director Md Abdul Wohab said a meeting of the Special Project Evaluation Committee was held in the Planning Commission recently on the extension proposal sent by the Road Transport and Highways Division.

He told The Business Standard that it took longer to start the supporting project because of the pandemic. But the inauguration of the construction work of MRT Line 5 will not be delayed much because supporting project implementation and the tender work of the main project are moving forward simultaneously.

He also expressed hope that it would be possible to run trains on the proposed Line 5 by 2030 as per the plan.

Officials of the Physical Infrastructure Division of the Planning Commission said, aside from extending the deadline by a year, an additional allocation of Tk3 crore for the survey project has been proposed., to which the commission raised no objection as the sum of money is not high.

The planning commission, however, expressed fear in the meeting that the main project may be delayed due to additional time taken in the survey project.

The preliminary DPP for the main project to build MRT Line 5 (southern route) at a cost of $4.90 billion has already been drafted, with government funding estimated at $2.1 billion.

The Asian Development Bank (ADB) has agreed to lend $2.5 billion to the project. Another $300 million has been sought from the agency by the government.

Dr Md Shamsul Hoque, a transportation expert and professor of the civil engineering department of Buet, expressed disappointment at the extra time wasted in the study of such an important project.

He said there is a major lack of communication and transport infrastructure in the east-west alignment of the capital. Metro rail will play a major role in the suffering of commuters in this area and a delay in such projects is unfortunate.