MRT-5 South to cost Tk3000cr per km

Though project cost has been revised downward by $600 million, the MRT-5 (Southern route) will still cost 46% higher per kilometre than its northern route.

A depreciating taka has meant that the cost for developing the MRT Line-5 (South) will even cost a staggering 79% more than Line-1, the first underground metro rail of the country.

The cost of constructing per kilometre of the MRT Line-5 (South) reached Tk3,013 crore. For the country's first underground metro rail, MRT Line-1, per km cost of the 31.241km line stood at Tk1,682 crore. 

The Dhaka Mass Transit has Company Limited (DMTCL) finalised a preliminary estimated cost of $4.9 billion, equivalent to Tk5,2430 crore, to develop the 17.4km metro rail from Gabtoli to Dasherkandi via Asad Gate, Panthapath, Hatirjheel and Aftab Nagar.

Officials disclosed the estimated cost of the proposed project at a stakeholders' workshop of the MRT Line-5 (Southern route) arranged by the DMTCL at a hotel in the capital on Sunday.

Project Director Md Abdul Wohab, however, claimed that the cost of the proposed project is relatively lower if the current exchange rate, rate schedule, and increase in the prices of various materials, including rods, cement and stones, is taken into consideration. 

Additional $300m sought

At the event, MAN Siddique asked the Asian Development Bank (ADB) to provide an additional $300 million loan alongside its previous commitment of $2.5 billion to avoid co-financing arrangements to develop the line, as the estimated cost of the project had reduced after a revision. 

The official said consultants had estimated the preliminary cost over $5.5 billion in the first draft. 

The DMTCL, Road Transport and Highways Division and the Economic Relations Division started seeking a co-financer as the committed amount of the ADB was significantly lower than demand. 

The estimated cost in the revised draft saw a $600 million reduction, thus it needs only $300 million from the donor agency as the government will provide $2.1 billion.

The DMTCL MD said implementing projects under co-financing arrangement creates challenges to comply with separate guidelines of different lenders.

The officials said consultants had estimated the preliminary cost over $5.5 billion in the first draft. The DMTCL, Road Transport and Highways Division and the Economic Relations Division started seeking a co-financer as the committed amount of the ADB was significantly lower than demand. 

Speaking as the chief guest, ABM Amin Ullah Nuri, secretary of the Road Transport and Highways Division, also requested the ADB to approve the additional loan of $300 million. 

He said if six metro rail lines are launched in Dhaka, more than 50 lakh people will benefit from it everyday.  

"The lines will help save travel time through reducing traffic congestion in the capital. People will be able to give more time to families and work stations, which will accelerate productivity," he noted.

Jiangbo Ning stressed over compliance of the Environmental Planning and Management to minimise environmental risks through reducing air, dust and sound pollution.

He also asked for compliance of the social safeguard and gender policies.

Jiangbo Ning, deputy country director of the ADB, officials of the project, consultants and representatives of several agencies of the government concerned with developing the line spoke at the event.

Cost of other projects are lower:

Prime Minister Sheikh Hasina inaugurated the country's first underground metro rail MRT Line-1 this month which had cost Tk52,561 crore in total.

The cost of developing 20km line with 13.5km underground under MRT Line-5 (Northern route) was set at Tk41,239 crore. 

The cost per km line was Tk2,062 crore. 

Project Director Abdul Wohab said the cost of MRT line-1 and MRT line-5 Northern route was set considering the schedule of rates in 2018. The base of the new proposed project is the schedule of rates in 2022, which is 10% higher than the previous year.

He also said the cost of the new project was estimated considering the exchange rate of November last year which was Tk102 per dollar, up from the previous rate of Tk84. 

He further said the price of construction materials increased tremendously in the recent months, which led to an increase in the cost of the project.

At the event, Siddique said the DMTCL also plans to develop a transit oriented development (ToD) hub in Gabtoli and a water-based ToD at Dasher Kandi. 

The first-water based ToD in the country will accelerate revenue to meet the operating cost of the metro rail.

He said the construction of the line is to be concluded by 2030 under the time bound action plan of the DMTCL and around 10 lakh passengers will use this line every day.

Project Director Md Abdul Wohab said the basic study of the project was concluded last year and the consultants will submit a report on the detailed design by next March.

Construction of the 12.8km underground metro rail from Gabtoli to Aftab Nagar and 4.6km elevated metro rail from Aftabnagar to Dasherkandi will be started by next year. Out of the total 15 stations, 11 will be underground.