'Proposal to give work to Chinese companies withdrawn due to lack of funds'

Due to insufficient funds allocated under the project's Development Project Proposal (DPP), the Cabinet Committee on Government Purchase has withdrew the decision to give the construction of the elevated section of the Dhaka Mass Rapid Transit (MRT) Line-5 (Northern Route) to three Chinese companies.

The proposal had been included on the agenda of the Cabinet Committee on Government Purchase meeting held at the Secretariat on Wednesday (July 29), chaired by Finance Minister Amir Khasru Mahmud Chowdhury. 

However, it was later withdrawn by the Road Transport and Highways Division before discussion.

According to meeting sources, the MRT Line-5 (Northern Route) project is being implemented jointly by the Government of Bangladesh and the Japan International Cooperation Agency (JICA). The proposal sought approval for a contract worth Tk 26.71 billion under the project's third construction package.

The withdrawal was solely due to a lack of adequate funding in the current DPP to implement the project.

"The proposal itself was not problematic. The main issue is that the DPP does not currently have sufficient financial allocation to implement the projects. Therefore, the proposals have been withdrawn for the time being," the official said.

Asked whether the proposal would be resubmitted at a later stage, the official said no decision had yet been made.

According to official documents, the third construction package of the MRT Line-5 (Northern Route) project includes the construction of approximately 6.5 kilometres of elevated metro rail. This comprises about 5.6 kilometres from Hemayetpur to Amin Bazar and around 0.9 kilometres from New Bazar to Bhatara.

The package also includes the construction of five elevated stations at Hemayetpur, Balliarpur, Bilamalia, Amin Bazar and Bhatara.

The MRT Line-5 (Northern Route) project was approved by the Executive Committee of the National Economic Council (ECNEC) on October 15, 2019, and received administrative approval on November 20, 2019.

The project's total estimated cost stands at Tk 412.3855 billion, of which Tk 121.2149 billion will come from the Government of Bangladesh and Tk 291.1705 billion will be financed through a JICA loan.

The implementation period runs from July 1, 2019, to December 31, 2028.