Expanding Kamalapur Metrorail Tk 1.86b cost reduced after negotiation

The long-standing complications surrounding the extension of the Metrorail from Motijheel to Kamalapur are finally beginning to ease. The delays stemmed from the contractor’s demand for additional costs to install railway tracks, electrical systems, and signaling equipment on the 1.16-kilometre stretch.

However, after several rounds of negotiations, the proposed cost has been reduced by Tk 1.86 billion—roughly 29 per cent lower than the initial demand. The revised proposal of Tk 4.65 billion is now under review by the government.

Even if the contractor is appointed immediately, it will take around one and a half years for the extended section to become operational. Initially, authorities had hoped to launch operations by December this year.

The Dhaka Mass Transit Company Limited (DMTCL), responsible for constructing and operating Dhaka’s metro system, expects the flyover and station structure in the Motijheel–Kamalapur section to be completed by December.

However, train services can only commence once the railway tracks, electrical wiring, and signaling systems are fully installed. Currently, the Metrorail is operational on a 20.1-kilometre stretch between Uttara and Motijheel.

According to DMTCL sources, the contractor for this additional segment is expected to be the same joint venture—Marubeni Corporation of Japan and India’s Larsen & Toubro—that handled the Uttara–Motijheel section.

The previous Awami League government had planned to treat the Kamalapur extension as a variation of the existing contract. However, the political transition following the mass uprising and the fall of the Awami League government on 5 August last year stalled the appointment process. When the interim government took over, concerns were raised about the contractor’s high bid.

Records show that the initial proposal submitted by Marubeni and Larsen & Toubro on 17 July last year was for Tk 6.51 billion. After negotiations, this was reduced to Tk 6.43 billion in December and then again to Tk 6.34 billion in January.

At that point, the government appointed Faruque Ahmed, an Australian expatriate with extensive experience in metro systems in India, Hong Kong, and Australia, as DMTCL’s Managing Director.

Under his leadership, the interim government ordered a fresh bidding process and considered open tenders to further reduce costs.

Following the new bidding process, the contractor proposed Tk 5.9 billion. But the government still found this figure too high. After three more months of negotiation, a final bid of Tk 4.65 billion was submitted in a letter dated 16 June. This offer is now under government review. Initially, the allocation for this section was Tk 2.74 billion.

The scope of work includes the installation of railway tracks, lifts, escalators, monitors, platform screen doors, signaling systems, and automated fare collection equipment.

It also covers the setup of substations and other power infrastructure necessary for running the trains and operating the station. However, no additional trains or coaches are required for this extension, as 24 sets have already been imported.

DMTCL Managing Director Faruque Ahmed told Prothom Alo, “Completing the Kamalapur extension is our top priority, but doing so in a cost-effective manner is equally important. Discussions on the latest bid are ongoing, and a decision will be made soon.”

The decision to extend the Dhaka Metro Rail up to Kamalapur was taken in 2022, with contractors appointed in 2023 to build the flyover and station at Kamalapur. According to the original schedule, construction was expected to be completed by June this year. However, due to slow progress, the deadline has now been extended to December.

The physical construction of the Motijheel–Kamalapur segment is being carried out by Ital-Thai Development Public Company, a Thailand-based firm. The contract for this portion is valued at Tk 5.11 billion, with McDonald Steel of Bangladesh serving as the local associate partner.

Ital-Thai had also undertaken the construction of the Uttara–Agargaon section, while the Agargaon–Motijheel segment was constructed by Japan’s Tekken and Sumitomo Mitsui Corporation. Both companies were invited to bid for the Kamalapur extension as well.

Commenting on the recent developments, Professor Shamsul Hoque, a transportation expert from the Department of Civil Engineering at Bangladesh University of Engineering and Technology (BUET), said the sharp reduction of Tk 1.86 billion in the contractor’s bid following negotiations indicates the initial quote was likely inflated. He pointed out that Bangladesh has often suffered in such dealings due to weak negotiating positions.

However, the newly appointed Managing Director of Dhaka Mass Transit Company Limited (DMTCL), who brings with him international experience in metro rail projects and contract negotiations, has succeeded in securing more favorable terms. Professor Hoque added that the next step should be ensuring strict adherence to quality standards once the contract is signed.