Metro route extension in limbo over cost hurdles

The metro rail company faces uncertainties over finishing the existing Uttara-Motijheel route's extension to the Kamalapur Railway Station in time as the contractor has proposed an exorbitant rate for electrical and mechanical work.

Against the Dhaka Mass Transit Company Limited's (DMTCL) estimation of Tk 2.98 billion, the Japanese-Indian joint venture proposed Tk 6.42 billion in the contract variation.

A contract variation refers to any change made to the terms or conditions of an existing contract, allowing the involved parties to modify specific aspects of the original agreement without creating a new one.

Sources said after signing the contract, nearly two years are needed to finish the extension work.

According to official sources, the joint venture of Japan's Marubeni and India's Larsen and Toubro was asked to submit a quotation for the contract package seven (CP 7) of the Mass Rapid Transit Line 6 (MRT Line 6) project in mid-2023.

It submitted a proposal of over Tk 6.42 billion in July that year, which it lowered in 2024 by only Tk 120 million to 6.30 billion upon request.

When the CP 7 work from the Uttara Diabari metro depot site to Motijheel was completed, Marubeni ended its partnership with Larsen and Toubro.

Officials said the exorbitant rate was submitted by taking advantage of the fact that DMTCL has to set up any new system that matches the existing MRT-6 arrangements.

The CP 7 contractor has already developed all mechanical and electrical systems with Japanese technology, mainly Sony and Nippon.

DMTCL signed the Minutes of Discussion with Japan International Cooperation Agency to carry out the 1.16km extension work after the government decided to expand the 20.1km Uttara-Motijheel MRT-6 line to the Kamalapur station in 2020.

The two sides agreed to invite the existing contractors of the civil work to submit proposals to save time.

However, after signing the contract with the contractor of CP 3 and CP 4, the civil work could not be completed in 26 months.

Sources said the Italian-Thai Development Public Company completed only 50 per cent of the civil work, though its contract ends in March.

Apart from the electrical and mechanical work in the extension, DMTCL will need to sign a contract with the CP 8 contractor for rolling stock.

DMTCL Managing Director Mohammad Abdur Rouf at a meeting with journalists on Tuesday said the matter of selecting the contractor for the electrical and mechanical work was raised at a recent board meeting of the company.

But another official said the board has only been informed as they have yet to start negotiations with the single contractor due to not finding any other option.

Project insiders said though the MRT-6 extension was supposed to be completed in December 2025, it is now obvious that it will be delayed by more than two years.

They argued the current board may not decide to invite fresh tenders to make the work competitive as many other firms can do the same work with the existing Japanese system.

The MRT-6 development work began in 2012, with the first phase's partial operation launching on December 28, 2022.

The project cost has already increased to Tk 334.72 billion from Tk 219.85 billion. The extension part budget was estimated at Tk 49.30 billion.

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