The Japan International Cooperation Agency (JICA), main financier and consultant of Dhaka Metro Rail's underground line (MRT Line-1), has rejected Dhaka Mass Transit Company Limited's (DMTCL) request to cancel two major construction tenders over cost concerns, warning that annulment would breach contractual obligations.
In a letter to Project Director Md Aftab Hossain Khan on Sunday, JICA stated that "the lowest evaluated bids were competitive and acceptable following technical and financial evaluation. Cancelling these tenders would violate Section 5.10 of JICA's Procurement Guidelines and legal obligations under the loan agreement."
DMTCL had sought the annulment on November 2, claiming contractor bids were nearly double the project's original estimates. Managing Director Md. Faruk Ahmed cited government procurement rules allowing cancellation of excessively priced contracts.
Cost disputes, leaked audio escalate tensions over underground project
The two disputed packages are critical to the MRT Line-1 underground route:
CP-02: Depot civil and building works in Rupganj, Sinohydro bid Tk 3,353 crore, against an estimate of Tk 1,230 crore.
CP-05: Mainline and station construction from Purbachal to Naya Bazar, Kajima bid Tk 5,055 crore, exceeding the projected Tk 4,012 crore.
JICA clarified that prior approvals for cancellations or re-tendering were based on procedural compliance and fairness - conditions it says were not met here.
Adding to tensions, a leaked audio allegedly captured a heated discussion between Faruk Ahmed and JICA officials, reportedly featuring inappropriate language. JICA filed a verbal complaint with the Ministry of Road Transport and Bridges.
Experts warn the conflict could delay the project. Dr. Sajjad Rahman, infrastructure policy analyst at Dhaka University, said, "A loss of trust at this stage could cause funding delays and reputational risks for DMTCL. Negotiation, not confrontation, is critical."
The MRT Line-1 underground section, from Hazrat Shahjalal International Airport to Kamalapur, is among Bangladesh's largest infrastructure projects, but repeated procedural conflicts and donor friction now threaten its timeline and the broader expansion of Dhaka's metro network.
