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The Dhaka Mass Transit Company Limited (DMTCL) has been denied permission by the Japan International Cooperation Agency (JICA) to call for a second round of tenders for the MRT Line-1 and MRT Line-5 (North) projects, despite contractors quoting significantly higher prices than estimated. The approved cost for MRT Line-1 was Tk 52,561 crore, but bids could raise it to nearly Tk 97,000 crore. Similarly, MRT Line-5’s cost may double from its approved Tk 41,238 crore. Under the loan agreement with JICA, DMTCL cannot renegotiate prices with contractors. Infrastructure experts blame weak loan terms negotiated during the previous Awami League government for the cost escalation, arguing that JICA’s restrictions contradict international practices. DMTCL officials admit the bids are excessively high but say they are exploring alternative financing and local material use to curb costs. The Ministry of Road Transport and Bridges has indicated that discussions with JICA are ongoing to find a solution to the rising expenses.

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