Aug 14, 2025

Dhaka Metro Rail Project Faces Dispute Over Contractor Selection, Potential Cost Inflation

**DHAKA, August 2025** — A fresh controversy has emerged surrounding the Dhaka Mass Rapid Transit (MRT) Line-1 project, with allegations that the tender process favors Japanese contractors, potentially inflating costs and undermining fair competition.

The MRT Line-1, overseen by Dhaka Mass Transit Company Limited (DMTCL), is designed to connect Kamalapur railway station to Hazrat Shahjalal International Airport, and Kuril to Purbachal New Town. Alongside this, DMTCL is also responsible for the planned MRT Line-5 (North Route).

At the center of the dispute is Package-8 of MRT Line-1, which covers the construction of six kilometers of elevated tracks and four stations. Industry sources allege that tender conditions have been structured in ways that could disqualify a Chinese bidder, effectively narrowing competition to just two Japanese firms.

Such restrictions have raised concerns about inflated costs. In earlier MRT Line-1 packages, Japanese bids reportedly overshot initial cost estimates by 125 percent, adding an extra Tk 190 billion. Critics argue that limited competition in the bidding process could result in similar escalations for Package-8.

The issue is compounded by Bangladesh’s loan arrangements with Japan. According to the Ministry of Road Transport and Bridges, the loan terms inherently favor Japanese companies. Tender documents have also introduced technical specifications that are difficult for non-Japanese contractors to meet for instance, requiring tunnel construction using the “one-pass joint” method, which is considered a Japanese specialty.

In response to mounting complaints, MRT Line-1 project director Abul Kashem has requested guidance from the government’s Central Procurement Technical Unit (CPTU) to ensure a fair and transparent evaluation process.

Observers note that while Japan remains a major partner in financing Bangladesh’s metro expansion, maintaining open competition and cost transparency is crucial to prevent excessive expenses and ensure long-term sustainability of Dhaka’s mass transit system.

Source: Prothom Alo

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