Wait for metrorail may get longer

FT ONLINE

The construction of Metrorail line 6 could be delayed further as the state-run transit agency has proposed refunding 40 percent of its annual allocations, people familiar with the development said.

The line, part of a fast-track project of the government, will run from Uttara to Motijheel.

They said the Dhaka Mass Transit Company Limited, or DMTCL, has asked for slashing its fund to Tk 43.27 billion from the annual allocations of Tk 72.13 billion under the development budget.

This means the transit authority will surrender Tk 28.62 billion from the upcoming revised Annual Development Programme, or ADP, for the fiscal year, 2019-20.

Although the company has sought 5.50 percent higher funds from the government's internal resources, it will more than halve its project aid from Japan.

In line with the agency's requirement, the government had earlier provided Tk 72.13 billion allocations in the ADP.

"We've missed our annual target of the project work. So, we may not spend the entire allocation," said an agency official.

The 20.1km-long Metrorail line is supposed to be completed by December 2020.

But the agency could complete 40 percent of the project work until January 2020.

With financial support from the Japan International Cooperation Agency or JICA, the transit company is implementing line 6 at a cost of Tk 219.85 billion.

The Executive Committee of the National Economic Council, or Ecnec, approved the metro-rail project in December 2012.

Under a bilateral deal, the JICA will provide US$2.10 billion worth loan to the government for constructing the metro rail.

Asked why the fund uses from the current ADP allocation was slower-than-expected, the company official said the utilization of the project aid would be streamlined from FY2021 since the agency has been asked to complete it by December this year.

In the first phase, the agency has started work on building a part of the line between Uttara and Agargaon from the middle of 2017 aimed at completing the construction by December 2019. But it has so far installed 9.0-kilometre viaduct.

The Italian-Thai, a Thai company, is working as the contractor to build the line from Uttara to Agargaon.

Two joint-ventures have completed 38 percent and 40 percent of the physical works of the remaining line from Agargoan to Motijheel, said an official.

The contractor has completed the pilling work and built some pier columns for the remaining 10km Metrorail line from Agargaon to Motijheel.

Another Japanese-Bangladesh joint venture is working for constructing viaducts and three elevated stations at Bijoy Sarani, Farmgate and Karwan Bazar.

On the other hand, Ikuokitada of Sumitomo Mitsui Construction Co. Ltd is working on building the 4.92km line from the last part that will connect Kawran Bazar with Motijheel.

According to the deals, both the contractors are supposed to complete work by December 2020.

The state-owned company has signed another deal with Indian Larsen & Toubro (L&T) and Marubeni, Japan JV for electro mechanical system.

Under the package, the contractor is supposed to complete the work by December 2020.