The proposed cost of the MRT Line-5 Southern Route has been cut by another Tk2,217.67 crore, mainly by excluding around Tk2,000 crore in payable interest from the project cost. The revised project cost now stands at Tk45,503.77 crore.
Revisions to land requirement and administrative costs have also helped bring the cost of the metro line, connecting Gabtoli and Daserkandi, down. The latest reduction follows a review meeting held at the Physical Infrastructure Division of the Planning Commission on 16 July.
Md Abdul Wohab, project director, said the latest cut was mainly achieved by reducing administrative expenses and revising the interest calculation. “Some administrative costs previously included in the project have been reduced. The interest payable after the loan moratorium ends has now been separated,” he said.
“These changes have reduced the project cost by around Tk2,000 crore. The remaining amount was adjusted through small reductions in several other cost items,” he added. The cost reduction will not affect the project, according to Wohab.
The project can move into implementation once the revised Development Project Proforma (DPP) is approved. Necessary preparations, documents, and land acquisition plans have already been completed. The project has been awaiting approval for a long time.
During the Awami League government, Dhaka Mass Transit Company Limited (DMTCL) had proposed Tk54,618.96 crore for implementing the project. Following the government’s fall, the project cost was reviewed and reduced to Tk47,721.44 crore during the interim government’s tenure.
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The latest revision has brought the cost down by Tk9,115.19 crore from the original proposal. They instructed officials to bring the proposed cost down further and make it more reasonable. Project director Wohab said the current government is interested in implementing the project quickly and has a positive stance on it.
The ADB and South Korea have given initial consent to provide Tk30,306 crore in loans, down from the previously proposed Tk32,332.92 crore. The government’s contribution has been reduced to Tk15,197.66 crore from Tk15,388.51 crore.
The 17.2km route will include 13.1km of underground track and 4.1km of raised track. The route will run from Gabtoli to Daserkandi, via Technical, Kallyanpur, Shyamoli, College Gate, Asad Gate, Russell Square, Karwan Bazar, Hatirjheel, Tejgaon, Aftabnagar.
According to DMTCL, the route could serve around 924,000 passengers daily by 2031.
DMTCL is working to finalize the project details, including the high pricing of certain components.