Dhaka BRT project stalls amid cost hikes, tender issues

The Dhaka BRT project, designed to connect Gazipur to Dhaka airport, has finished 77 per cent of civil works, but delays in procuring 187 buses have sharply driven up project costs, officials said on Wednesday.

The bloated bus costs and abnormal project cost hike have already forced the government's highest economic policy-making body, the Executive Committee of the National Economic Council (ECNEC), to reject the latest revision.

The Dhaka BRT (Bus Rapid Transit) Company Limited has revised the cost of diesel-run buses to Tk 30 million each and electric buses to Tk 8 million each in its fourth revision, official documents showed.

The company recently sought ECNEC approval to revise the "Greater Dhaka Sustainable Urban Transport Project (BRT, Gazipur-Airport)" to extend both cost and timeline, but the proposal was declined.

A government official, requesting anonymity, said bidders in the second tender submitted significantly higher prices than in the first tender, leading to a sharp cost increase in the fourth revision.

He added that although Dhaka BRT cancelled the first bidding process and floated a second tender, it has yet to select a company to supply buses for the 20.5 km dedicated corridor between the Airport and Shibbari, Gazipur.

The company has now requested an additional five years to complete bus procurement, ITS installation, and the remaining civil works under the proposed fourth revision.

According to the Revised Development Project Proposal (RDPP), the fourth revision seeks Tk 65.97 billion -- 54.57 per cent higher than the Tk 42.68 billion approved in the third revision -- with a new completion timeline extended to 2029.

Although the fresh tender procedure was completed in August last year, legal complications related to purchasing buses for the corridor remain unresolved.

Road Transport and Bridges ministry officials said the BRT Company's board has not endorsed the evaluation committee report for buying 137 diesel buses due to these legal complexities.

No progress could be made to finalise the procurement as the first tender was cancelled amid allegations of corruption or politically motivated interference. Taking these allegations seriously, the Anti-Corruption Commission (ACC) is now investigating the issue.

Officials said a Chinese company lodged a complaint after the board cancelled the first tender in early 2024. The tender-evaluation committee reported that the three lowest bidders were associated with the same company, prompting cancellation.

The first tender, floated in January 2023 for 137 diesel buses, deviated from the original plan to operate articulated buses and later electric buses for the BRT corridor.

The BRT Company issued a fresh tender in April 2024 after obtaining a court order against a writ petition, claiming the bids were properly invited under Public Procurement Rules (PPR). The Chinese company challenged the writ in the Supreme Court but was rejected, and the CPTU also dismissed its earlier plea.

The second tender's validation period has been extended due to unresolved complications. Board approval has also been delayed as the project tenure expired and its extension is yet to be approved.

In the first tender, the lowest bid was Tk 1.88 billion, and the second-lowest was Tk 2.03 billion. The latest tender, however, saw significantly inflated quotes, with the lowest bidder quoting Tk 3.60 billion and the second bidder quoting a staggering Tk 12 billion.

The BRT corridor, part of the Greater Dhaka Sustainable Urban Transport Project launched in 2012, remains incomplete despite years of construction and investment. Prolonged tender delays have only increased public frustration over the long-pending project.