Expenditure of the Mass Rapid Transit Line-5 (MRT Line-5) Southern Route project, stretching from Gabtoli to Dasherkandi, has been cut by 15% following a recent review.
This development underscores the potential for cost-saving measures through reassessment of mega projects initiated under the Sheikh Hasina government.
The review conducted by Dhaka Mass Transit Company Limited (DMTCL) led to a reduction of Tk6,898 crore from the project's budget.
The review was initiated at the directive of the Planning Commission, currently headed by Planning Adviser Professor Wahiduddin Mahmud.
Following this reassessment, a revised project proposal has been submitted to the Road Transport and Highways Division, where further cost reductions may still be possible.
Project Director Md Abdul Wahab noted that savings were achieved through reducing loan interest repayment periods, cutting capital expenditure, and adjusting estimated additional costs.
The original budget proposal of Tk54,619 crore for the project was introduced during the tenure of the Awami League government.
While the Planning Commission's evaluation committee assessed the proposal earlier in April this year, no changes to expenditure were made at that time.
In the wake of the Awami League government's departure, the interim administration led by Dr Yunus opted to re-evaluate large-scale project expenses.
As a result, the DMTCL project was revised, bringing its cost down to Tk47,721 crore.
Following this initial reassessment, DMTCL submitted an amended Development Project Proposal (DPP) to the Road Transport and Highways Division.
A letter from DMTCL cited the rationale for cost reduction, which included a detailed analysis of project background, expenditure breakdowns, unit rates, foreign loan interest, and feasibility assessments.
The revised DPP specifies that Tk39,138 crore of the total expenditure will be financed through foreign loans, with the Asian Development Bank (ADB) and South Korea providing initial approval for the funding.
The Southern Route of MRT Line-5 will link areas such as Gabtoli, Technical, Kalyanpur, Shyamoli, College Gate, Asad Gate, Russell Square, Karwan Bazar, Hatirjheel, Tejgaon, Aftabnagar, Nasirabad, and Dasherkandi.
The project includes a 13.10-kilometre underground section from Gabtoli to Aftabnagar and a 4.10-kilometre elevated metro line extending from Aftabnagar to Dasherkandi.
