MRT line-5 (South): Funds to dry up if project doesn't roll this year, says ADB

The Asian Development Bank (ADB) has inquired about the status of the proposed MRT line-5 (south) as the project has faced a setback in the middle of the approval process, officials say.

On Friday, they said the Manila-based lender had informed the government that its MRT-5 project funds would dry up after 2025 if Bangladesh failed to start construction this year.

At a tripartite meeting among the ADB, the Economic Relations Division (ERD), and the project-implementing agencies, the lender had informed the government of this.

A senior ERD official told The Financial Express they were waiting for the approval of the project's Development Project Proposal (DPP), which was pending at the Planning Commission (PC).

"After the approval, we will go for the loan deal with the ADB and another co-financier Korean Exim Bank," he said.

The planning adviser has not given the green signal for placing the Tk 47.72 billion project before the Executive Committee of the National Economic Council (ECNEC).

But the Project Evaluation Committee (PEC) had already endorsed the project for its placement before the ECNEC, said an official.

He said the government was trying to avoid taking up the high-cost mega project as Bangladesh's economy was under pressure.

Out of the Tk 47.72 billion cost, the ADB and the Korean Exim Bank have assured to provide Tk 32.33 billion.

The rest will be provided by the Bangladesh government from its own resources.

The length of the line is about 17.4 kilometres between Gabtoli and Dasherkandi stations.

The route is Gabtoli-Kalyanpur-Mirpur Road-Panthapath-Karwan Bazar-Hatirjheel-Aftabnagar-Dasherkandi.

Of the route, the Gabtoli-Aftabnagar section will have 12.8 kilometres of underground line with 12 stations, while the remaining stretch will have four elevated ones.

Trains would carry 19,500 passengers per hour in 2031 as they would run every 4.5 minutes between Gabtoli and Dasherkandi, the DPP said.

An ERD official said they had completed negotiations with the ADB about the project a year back.

Talks with the Korean Exim Bank had also been finished, he said.

"Since the DPP is yet to be endorsed by the Planning Commission, we are not going for signing the loan deal with the ADB and the Korean Exim Bank," he added.

In November 2019, the ADB approved a concessional loan of $33.26 million for a project to design the MRT-line 5 (southern route), which will help ease traffic and reduce pollution in the overcrowded Bangladeshi capital.

The loan will be used for carrying out detailed feasibility studies, doing engineering design, and preparing procurement documentation.

Meanwhile, the ADB has kept aside funds for its 2026 portfolio for Bangladesh.