In a first, World Bank to fund metro line connecting Old Dhaka

Infograph: TBS

Highlights:

• World Bank to finance Bangladesh's MRT Line 2 project
• MRT 2 will link Gabtoli, Old Dhaka, and Demra
• $2.5M grant supports design, feasibility, tender preparations
• Route revised from 35km Gabtoli-Narayanganj to 25km Gabtoli-Demra
• Narayanganj to be served later by MRT Line 7
• Planning Commission prioritizes MRT 2 over MRT 5

For the first time, the World Bank is set to finance a metro rail project in Bangladesh, which will bring Old Dhaka under the network.

The milestone Mass Rapid Transit (MRT) Line 2 project will connect Gabtoli to Old Dhaka up to Demra.

Officials from the Economic Relations Division (ERD) said Japan, the Asian Development Bank (ADB), and South Korea previously financed metro projects, and the World Bank has now granted policy approval for loans to construct the MRT 2 project.

The World Bank will support the project by assisting with the feasibility study, basic and detailed designs, as well as tender preparation – all under a Technical Assistance Project Proforma.

The Bank will provide a $2.5 million grant for the Proforma, according to officials from ERD and the Dhaka Mass Transit Company Limited (DMTCL), a state-owned enterprise responsible for implementing and operating metro rail projects.

The total estimated cost of the revised project and the size of the World Bank loan will be determined following the Proforma completion.

The MRT 2 project has been slightly revised – from a 35-kilometre line to a 25-kilometre route featuring both elevated and underground sections.

It will run from Gabtoli to Demra via Mohammadpur, New Market, Lalbagh, Mitford, and Dholaikhal, with a branch line from Gulistan to Sadarghat.

The original plan, which proposed a route from Gabtoli to Narayanganj, had an estimated cost of over Tk60,000 crore.

A senior ERD official said, "The World Bank is providing a grant to prepare the Proforma because it plans to invest in MRT 2. However, the grant may be forfeited if the Proforma process is not completed promptly."

To speed things up, an inter-ministerial meeting will be held today at ERD, chaired by Mirana Mahrukh, additional secretary and acting Wing Chief (World Bank), ERD.

Md Abdul Baquee Miah, director (Planning and Development) at DMTCL, told TBS that the Technical Assistance Project Proforma has already been submitted to the Road Transport and Highways Division and will soon go to the Planning Commission and then to ERD. 

He noted that the World Bank requires Technical Assistance Project Proforma approval by August, and the $2.5 million grant can only be secured if all processes are completed in time. This will be a key focus of Thursday's meeting.

He added that the World Bank has shown interest in financing the feasibility study, basic and detailed designs, and is also expected to support the main investment. The total project cost and loan amount will be known after the feasibility and design phases are complete.

MRT 2 route revised

Originally, MRT 2 was planned to run from Gabtoli to Narayanganj Sadar, with proposed stations at Dhaka Udyan, Mohammadpur Bus Stand, Jhigatola, Science Lab, New Market, Azimpur, Palashi, DMCH, Gulistan, Motijheel, Kamalapur, Manda, Dakkhingaon, Damripara, Signboard, Bhuiyaghar, and Jalkuri. A branch line from Gulistan to Sadarghat via Nayabazar was also proposed.

According to DMTCL's initial estimate, the 35km line would cost around Tk60,837 crore.

However, officials said the draft of the Updated Revised Strategic Transport Plan (RSTP) suggests a change in the route. As per the new proposal, MRT 2 will now run from Gabtoli to Demra, excluding Narayanganj. Instead, Narayanganj will be connected through another metro project, MRT 7.

Meanwhile, another metro project, MRT Line 5 (Southern Route), from Gabtoli to Dasherkandi — funded by ADB and Korea — is awaiting final approval. 

Although MRT 5 was initially prioritised, the Planning Commission later recommended implementing MRT 2 first, arguing that Dasherkandi is less economically active, while connecting Old Dhaka would benefit far more people due to its population density.