The new southern route will link the western and eastern ends of Dhaka through 15 stations
Published : 17 Sep 2026, 12:08 AM
The government has approved a 117.64 percent cost hike for Bangladesh’s first underground metro rail project, Dhaka Mass Rapid Transit Development Project (MRT) Line-1, bringing the total outlay to Tk 1.14 trillion.
The Executive Committee of the National Economic Council (ECNEC) also greenlit a 117.87 percent budget hike for the MRT Line-5 Northern Route on Wednesday, pushing the tab to Tk 898.48 billion.
Alongside the revisions, the BNP administration has signed off on a fresh metro project costing Tk 455.03 billion.
The new line will cover the MRT Line-5 Southern Route running from Gabtoli to Dasherkandi, connecting the capital's eastern and western ends to ease traffic congestion, according to the proposal tabled at the meeting.
State Minister for Planning Zonayed Saki told reporters after the meeting that the Asian Development Bank (ADB) and South Korea will bankroll the new line.
Attributing the cost overruns in the two existing projects to rising Japanese loan interest rates and compliance costs under contract terms, Saki briefed journalists at the Planning Commission in Sher-e-Bangla Nagar.
Presided by Prime Minister Tarique Rahman at the Secretariat, the ECNEC meeting cleared 12 projects including the three metro rail ventures, with an estimated total expenditure of Tk 1.68 trillion.
The main agenda item of the meeting focused on approving the MRT Line-5 Southern Route (Gabtoli-Dasherkandi) project, which spans 17.20km incorporating both underground and elevated sections.
Out of the Tk 455.03 billion project budget, government funding stands at Tk 151.97 billion, while ADB and South Korea will provide Tk 303.06 billion in loans for the project scheduled for execution between September 2026 and August 2033.
