MRT-6 cost trimmed by Tk754cr, deadline pushed to 2028
DMTCL said the govt is reviewing all metro projects to cut costs
More than a decade after its approval, the MRT Line-6 project is seeing its first significant cost reduction of over Tk754 crore as the interim government is set to finalise a third revision, extending the deadline to December 2028.
MRT-6 is Bangladesh's first metro rail line, with the 20.1km Uttara-Motijheel section already operational and the 1.16km Motijheel-Kamalapur extension work underway. The line was inaugurated in December 2022, initially operating between Uttara and Agargaon. All stations up to Motijheel were opened to passengers by the end of 2023.
The Planning Commission's Project Evaluation Committee approved the revised proposal yesterday. It will now be forwarded to the Executive Committee of the National Economic Council (Ecnec) for final approval in its upcoming meeting, according to commission sources.
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According to the Planning Commission and Dhaka Mass Transit Company Limited (DMTCL) – the project's implementing agency, the Motijheel-Kamalapur section will be completed within the next 18 months, with train operations on this stretch expected to begin on 1 January 2027. The following 18 months will serve as the Defect Liability Period for the contractor.
How the costs changed
According to project documents, seen by TBS, the MRT-6 was initially approved on 18 December 2012 at Tk21,985.07 crore, including a loan of Tk16,594.59 crore from the Japan International Cooperation Agency (Jica), to build the 20.1 km elevated metro from Uttara to Motijheel. The original implementation period was July 2012-June 2024.
The first revision, approved in June 2017, did not involve a cost change. Later, the project was extended by 1.16 km to Kamalapur, raising the cost to Tk33,471.99 crore and extending the deadline to 31 December 2025. Ecnec approved this second revision on 19 July 2022.
In the third proposed revision, the cost has been reduced by Tk754 crore (2.95%) compared to the second revision, bringing the revised total to Tk32,717.72 crore. Of this, Tk12,521.96 crore is government financing, and Tk20,195.76 crore comes from Jica.
Brig Gen (Retd) Abdul Wohab, project director (additional charge), MRT-6, said, "Some components saw cost reductions – most notably land acquisition – while consultancy fees and several technical components increased. After all adjustments, the net cost drops by Tk754 crore," he said.
The project deadline was extended due to ongoing work on the Motijheel-Kamalapur stretch, he said.
Where costs decreased
Several components of the project saw cost reductions in the latest revision. Land acquisition expenses fell by Tk1,211.72 crore, as no additional land (3.56 hectares) was required for the Entry and Exit structures at Bijoy Sarani, Farmgate, Shahbagh, Dhaka University, and Motijheel stations.
The proposed station plaza constructions at Uttara North, Uttara Central, Agargaon, and Motijheel were dropped, resulting in a further cost reduction of Tk164 crore.
Additional savings were recorded in other project areas, including Tk116 crore in main line civil and station works, Tk90.45 crore in the Electric & Mechanical (E&M) Railway Management System, and Tk2.98 crore in rehabilitation consultancy services.
Where costs increased
Costs also rose in several areas due to the extended project deadline and design revisions. Salaries, allowances, and office rent increased by Tk167 crore, while general consultancy and institutional development services added Tk222.25 crore to the budget.
Foreign loan repayments, including principal and construction-period interest, rose by Tk270 crore, and spending on rolling stock and equipment went up by Tk561.17 crore.
Several other minor components also saw additional cost increases, contributing to the overall rise in project expenditure.
Govt reviewing all metro projects' costs
Faruque Ahmed, managing director of DMTCL, said the government is reviewing the costs of all metro projects to prevent foreign loans from becoming a burden.
"Costs are being reduced in two ways: by ensuring competitive bidding and by cutting non-essential components. For example, electrification and signalling from Kamalapur to Motijheel's Shapla Chattar were reduced by Tk170 crore through negotiation with contractors," he said.
He added that changes in design, rationalising the number of depots, and dropping infrastructure like station plazas also helped reduce expenses.
