Indo-Japan JV wins Tk 11,591cr MRT-1 contract

An Indian-Japanese joint venture led by Tata Projects has secured a Tk 11,590.58 crore contract to build a 5.18-kilometre underground section of Dhaka's first underground metro rail, MRT Line-1, as the project's overall cost has more than doubled from its original estimate.

The joint venture, comprising India's Tata Projects and Japanese firms Nishimatsu Construction and Toda Corporation, will carry out civil construction, architectural finishing and mechanical, electrical and plumbing works under Contract Package CP-06.

The contract, awarded by Dhaka Mass Transit Company Limited (DMTCL), covers three underground stations at Khilkhet, Airport Terminal 3 and Airport, along with a shaft at the northern end of the line.

Rajiv Menon, president and chief growth and strategy officer at Tata Projects, said the contract would strengthen the company's position in the global urban infrastructure market.

Tata-Nishimatsu to build 5.18km underground section as project cost more than doubles 

The project would enhance its visibility as a reliable partner for governments and international engineering, procurement and construction (EPC) companies, he said.

Tata Projects specialises in major urban and industrial infrastructure, including refinery and petrochemical projects, according to The Economic Times.

The Cabinet Committee on Government Purchase approved the contract on October 1, 2026. The project is being implemented with financial assistance from the Japan International Cooperation Agency (JICA).

Meanwhile, the overall cost of MRT Line-1 has risen sharply, with the Executive Committee of the National Economic Council (ECNEC) approving a revised budget of Tk 1,14,394.89 crore on September 16, up from the original Tk 52,561.43 crore approved in 2019.

The increase of Tk 61,833.46 crore represents a 117.64 per cent rise. Under the revised financing plan, the government will provide Tk 30,552.26 crore, while JICA will extend Tk 83,842.63 crore in loans.

The project, launched in September 2019, was initially scheduled for completion by December 2026. Its deadline has now been extended to December 2033.

MRT Line-1 will cover 31.24 kilometres, comprising a 19.87-kilometre underground section from Hazrat Shahjalal International Airport to Kamalapur and an 11.37-kilometre elevated section from Notun Bazar to Pitalganj, where the depot will be built.

The line will have 21 stations, including 12 underground stations along the airport-Kamalapur route. Its 12 contract packages cover civil works, stations, depot facilities, tracks, electrical and mechanical systems, signalling, telecommunications and rolling stock.

The sharp rise in costs and prolonged implementation timeline have raised concerns over the financial and technical challenges of completing the country's largest urban rail project.

Once operational, MRT Line-1 is expected to ease traffic congestion, cut travel times and improve connectivity between the airport, central Dhaka and the planned Purbachal urban area.