Three New Metro Rail Projects Approved at Tk2.5 Lakh Crore
Bangladesh has approved three major metro rail projects with a combined estimated cost of Tk2,49,746 crore, covering routes from the airport to Kamalapur, Hemayetpur to Bhatara, and Gabtoli to Dasherkandi. The approvals were given at an ECNEC meeting chaired by Prime Minister Tarique Rahman on Wednesday.
In a Nutshell:
- The government has approved three major metro rail projects with a combined estimated cost of Tk2,49,746 crore.
- MRT Line-1 runs from Airport to Kamalapur, including the Purbachal route, with an estimated cost of Tk1,14,394.89 crore.
- MRT Line-5 Northern connects Hemayetpur to Bhatara and has an estimated budget of Tk89,848.36 crore.
- MRT Line-5 Southern runs from Gabtoli to Dasherkandi and is jointly financed by the Asian Development Bank and South Korea.
- The first two projects are Japan-funded, while the Southern Route will receive financing from ADB and South Korea.
Context
The three approvals combine two revised projects with one new project. MRT Line-1 and MRT Line-5 Northern were approved earlier, but their costs have since increased substantially. Line-1 is now estimated at Tk1.14 lakh crore, while Line-5 Northern is estimated at nearly Tk90,000 crore. The Southern Route was the project originally scheduled for Wednesday's Ecnec meeting, but the two revised Japanese-funded projects were also placed before the committee and approved.
Why it matters
During the Awami League regime, a government white paper found widespread corruption in development projects, with project costs increasing by an average of 70%. In the MRT Line-1 land acquisition process, the ACC also filed a case alleging that Tk4.71 crore in government compensation was obtained through false land documents. Thus, the scale of the spending is notable given the history of corruption allegations and alleged misuse of public funds in mega projects under the previous government. Nearly Tk2.5 lakh crore is now being committed across three projects, after years of concerns over how large development projects were planned and implemented.
What we think
The expansion of metro rail is important for a city where traffic congestion has become part of everyday life. But given the allegations about the handling of major projects under the previous government, this Tk2.5 lakh crore expansion needs to be treated as more than just another development headline.