Planned subway network in city: No physical progress for lack of financing

The subway network planned to be developed in the city has so far made no physical progress as the authorities could not arrange funds in almost two years since the completion of its feasibility study that showed the project economically viable.

Sources said the Bangladesh Bridge Authority (BBA) has initially tried to convince investors and funding agencies to finance some routes but only to get a lukewarm response.

The authorities conducted the feasibility study during 2019-2022 despite a dedicated government-owned company being mandated to plan, develop and operate both underground and elevated metro rail in the city.

However, the authorities proposed four subway routes to the Japanese investors during the recent Japan-Bangladesh joint platform meeting for financing the subways under government-to-government or public private partnership (PPP) arrangements.

Before completing the feasibility study, the BBA had proposed Korea in the Korea-Bangladesh joint platform meeting in 2020 to invest in the project.

Analysts, however, said the BBA's PPP model for subways or MRTs would not work as getting investment like US$ 7.0-8.0 billion can hardly be possible from the private sector globally.

"There is no such example in carrying out any corridor of metro rail or subway under PPP in the world, except operation and maintenance of such infrastructure," said an analyst, preferring not to be named.

Sources also said the BBA continued planning to propose funds from the G2G PPP model as the PPP Authority is likely to hold more joint platform meetings with different countries including South Korea.

When asked, BBA Chief Engineer Quazi Ferdous said that the preliminary development project proposal on the subways has been sent to the Economic Relations Division (ERD) to seek funds from the development partners.

He, however, pointed out that the JICA representative was present during the BBA presentation at the recent Japan-Bangladesh Joint Platform meeting.

The BBA's subway network with 11 routes was found feasible, giving priority to four routes - O, S, T and B which are Jhilmil-Tongi, Siddhirganj-Kamrangirchar, Uttara-Narayanganj and Gabtoli-Mastul. The construction cost of each of the subway's was estimated at around $ 8.0 billion.

The government has already been developing six metro rail corridors in the city's east-west and north-south corridor by forming Dhaka Mass Transit Company Limited since 2013.

So far Japan International Cooperation Agency (JICA) has been funding three corridors and the Asian Development Bank another one.

DMTCL is also trying to develop two MRTs under PPP model but the feasibility study is yet to complete.

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