MRT-5 Project Cost Reduced By Tk 7000 Crore

The cost of the MRT-5 (Gabatli-Dasherkandi) Southern Route project has been reduced by 15 per cent after revaluation. As a result, the project's cost has decreased by about 6,898 crores.

Dhaka Mass Transit Company Limited (DMTCL) said this information on Sunday.

It is known that the amended project has been submitted to the Road Transport and Highways Department after reviewing it on the instructions of the Planning Commission of the Interim Government. There is potential for further cost reductions from the project.

Director of the project. “Cost savings have been achieved by shortening the loan interest repayment period, reducing capital expenditure and reducing additional cost estimates,” said Abdul Wahab.

Earlier, the then Awami League government initially proposed a budget of Tk 54,619 crore for the project. The Planning Commission reviewed the proposal in April this year, but there was no cost reduction. Then Dr. Yunus-led interim government decided to re-evaluate the cost of major projects. There the cost of the MRT-5 project was revised to 47,721 crores.

DMTCL's letter to the Road Transport and Highways Department said the cost reduction was based on project context and cost analysis, unit rate, foreign loan interest and feasibility analysis. Of the total expenditure, Tk 39,138 crore will be covered by foreign loans. The Asian Development Bank (ADB) and South Korea have given initial approval for the financing.

Incidentally, the MRT-5 South route will connect Gabtali, Technical, Kallyanpur, Shyamoli, College Gate, Asad Gate, Russell Square, Karwan Bazar, Hatirjheel, Tejgaon, Aftabnagar, Nasirabad and Dasherkandi areas. In this project, 13.10 km underground metro line will be constructed from Gabtali to Aftabnagar and 4.10 km elevated metro line from Aftabnagar to Dasherkandi.