Tk8,631cr proposed for MRT-1 as construction begins in FY26

Summary:

• MRT Line-1 budget proposed at Tk8,631 crore, doubling FY25 allocation.
• Construction phase starts next year, increasing financial demand significantly.
• Land development for MRT-1 depot is 87% complete.
• Total project cost Tk53,977 crore, Japan providing Tk39,450 crore loan.
• Completion delayed to 2029 despite initial 2026 target.

The Road Transport and Highways Division has proposed Tk8,631 crore for MRT Line-1 in the upcoming budget, more than double the allocation for FY25.

In the FY25 Annual Development Programme (ADP), the government initially allocated Tk3,594 crore for MRT Line-1, which was later revised down to Tk2,126 crore.  

The demand for funds has surged as the Mass Rapid Transit Line-1 – stretching from the airport to Kamalapur and from Natun Bazar to Pitalganj in Rupganj – will enter the main construction phase next fiscal year.

Project Director Abul Kashem Bhuiyan told The Business Standard, "Of the 12 packages for MRT-1, 11 have completed the tendering process, and the final package will be completed next week."  

The first underground metro rail in Bangladesh is being built along the airport route, with the project's implementation having begun in 2019

"Land development for the MRT Line-1 depot on 88.71 acres is 87% complete, increasing the financial demand for the next fiscal year. If implemented properly, expenditures may exceed the projected demand," he added.  

Although the allocation for FY26 shows a significant increase, the revised ADP for the current fiscal year proposes a 40.85% reduction for this project.  The total cost of the project is Tk53,977 crore, with Japan providing a loan of Tk39,450 crore.  

According to the Budget Management Committee of the Road Transport and Highways Division, held on 15 January, a 140% year-on-year increase in the allocation for the MRT-1 project has been proposed for the next fiscal year's ADP.  

As the minutes of the meeting reveal, Tk11,469.52 crore has been proposed for the three ongoing metro rail projects, including MRT-1, in FY26.  

The current ADP allocated Tk6,605.81 crore for all metro projects from MRT-1 to MRT-6, but this has been revised down by 72.83% to Tk4,822.12 crore.  

In addition to MRT-1, two other MRT projects are underway: MRT Line-6 (Uttara-Kamalapur) and MRT Line-5 Northern (Hemayetpur-Mirpur 10-Bhatara). The feasibility study for MRT Line-5 Southern is also in progress, scheduled for completion by the end of the current fiscal year.  

According to the Dhaka Mass Transit Company Limited (DMTCL), the MRT-1 project will construct a 19.872km underground metro rail line from the airport to Kamalapur and an 11.369km elevated line from Natun Bazar to Pitalganj Depot, with 14 underground and seven elevated stations. 

The first underground metro rail in Bangladesh is being built along the airport route, with the project's implementation having begun in 2019.  

Although the implementation of the MRT-1 project is scheduled for completion by December 2026, DMTCL has stated that it will not be finished on time. As a result, a 60-month contract has been agreed with the contractor for constructing the underground metro, with completion now expected by 2029.  

Meanwhile, the extension of Metrorail Line 6 from Uttara to Motijheel and Kamalapur is underway, with completion expected in December 2025.  

In the current budget, Tk1,975 crore was allocated for the project, but the revised ADP proposes a reduction to Tk1,238 crore. For the next fiscal year's ADP, Tk1,347 crore has been requested. Japan is providing a loan of Tk19,718 crore for the project, which has a total cost of Tk33,472 crore.  

An allocation of Tk1,490 crore has been proposed for the Hemayetpur-Mirpur-10-Bhatara MRT Line 5 (Northern) project in the next fiscal year. The allocation for this project in the current fiscal year was Tk968 crore, which remains unchanged in the revised ADP.  

The line will span 20 kilometers from Hemayetpur to Amin Bazar, 6.5 kilometers from Natun Bazar to Bhatara, and 13.5 kilometers from Amin Bazar to Natun Bazar.  

DMTCL sources report that the contractor appointment process for 10 packages is underway. The total project cost is estimated at Tk41,238 crore, with Japan providing a loan of Tk29,117 crore.