After revaluation of Metrorail's Gabtali-Dasherkandi route, cost reduced by Tk 7000 crore

The cost of Mass Rapid Transit Line-5 Metrorail's Southern Route (Gabatli-Dasherkandi) project is said to have been reduced by 15 percent after a recent review. As a result, the possibility of cost savings through revaluation of Sheikh Hasina government's projects has become more clear. Dhaka Mass Transit Company Limited (DMTCL), the managing company of Metrorail, reduced the cost by 6 thousand 898 crores after re-evaluating the project.

Recently, this review was conducted on the instructions of the Planning Commission headed by the interim government advisor Professor Wahiduddin Mahmud. The revised project proposal has been submitted to the Road Transport and Highways Department. There is a possibility of further cost reduction from there.

Meanwhile, project director. Abdul Wahab said that cost savings have been achieved by reducing loan interest repayment period, reducing capital expenditure and reducing additional cost estimates.

Initially, during the Awami League government, DMTCL had proposed a budget of Tk 54,619 crore for the project. The Planning Commission's Appraisal Committee reviewed the proposal in April this year, but there was no change in the cost.

After the departure of the Awami League government. The Yunus-led interim government decided to re-evaluate the cost of major projects. As a result, the DMTCL project was reconsidered and its cost was revised to Tk 47,721 crore.

After the first review, DMTCL submitted the Revised Development Project Proposal (DPP) to the Department of Road Transport and Highways. A letter from DMTCL sent to the department said that the cost reduction was based on project context and cost analysis, unit rate, foreign loan interest and feasibility analysis.

The DPP mentions that out of the total expenditure, Tk 39 thousand 138 crore will be covered by foreign loans. The Asian Development Bank (ADB) and South Korea have initially agreed to the financing.

The MRT Line-5 South route will connect Gabtali, Technical, Kalyanpur, Shyamoli, College Gate, Asad Gate, Russell Square, Karwan Bazar, Hatirjheel, Tejgaon, Aftabnagar, Nasirabad and Dasherkandi areas.

The MRT Line-5 project is expected to build 13.10 km underground metro line from Gabtali to Aftabnagar and 4.10 km elevated metro line from Aftabnagar to Dasherkandi.