Dhaka Mass Transit Company Limited (DMTCL) decided to return the unused fund of Tk 2,460 crore to Japanese company JICA as it could not acquire land and approve the tender for the Mass Rapid Transit (MRT) Line-1 project of DMTCL. MRT Line-1 sources said they could not utilize the money allocated for the Japanese loan for this fiscal year due to long-standing problems in implementing projects with foreign financing despite the deficit in revenue collection and decreasing foreign exchange reserves.
According to the MRT Line-1, the tender papers were sent to JICA between February and March this year. However, JICA suggested amendment of four packages and gave initial approval to one. The tender for the approved package was floated on June 26 and the tender box was opened on November 14. However, JICA needs to be reviewed before finalizing the contractor. After the tender, JICA's technical review, technical consent and technical approval are required. After getting the approval of these stages, the board of DMTCL will finally be able to appoint the contractor. After final approval, it will take five years for the underground portion to be completed by packing.
MRT Line-1 sources also said that the project work of MRT Line-1 will be done under 12 packages. Although the project started in February this year with the development of land in the depot area, the construction packages have not yet started. DMTCL had also planned to start the entire work of the underground railway line and station in four packages in the current financial year. For this, Tk 3,910 crore was allocated for the project, of which Tk 2,700 crore was foreign fund. However, by next June, the final approval of only one package can be received. There has also been a delay in getting approval for four packages from lender JICA. Of the total cost of the project, JICA is providing a loan of Tk 39,450 crore.
Experts believed that although the mega MRT Line-1 project was taken to reduce traffic congestion in the capital Dhaka, the authorities did not give much importance to the implementation because of proper plan. If the construction work starts in the next financial year, then there will be only two and a half years to complete the project, which is impossible in reality. This will increase both the duration and cost of the project. At the same time, the benefits of the project will also be delayed. It is disappointing that the construction work of an important structure like Metro Rail could not start even after four years of approval. The implementation of government projects is being hampered due to fiscal deficit, fall in foreign exchange reserves and pressure on the exchange rate. In this situation, the return of foreign aid will increase another fear.
Md Abul Kashem Bhuiyan, MRT Line-1 project director of the Dhaka Mass Rapid Transit Development Project, told The Daily Post that it was not possible to use the allocated funds mainly due to various complications, including land acquisition and approval of purchase proposals from the lending agency. The appointment of contractors for this package may end in the current financial year, or it may not. Considering this, it has been proposed to return the allocated money. Final approval for one of these four packages could be obtained in June 2024. Therefore, the mobilization advance of these packages (the money initially allocated to the contractor) is being refunded. This delay will also increase the overall cost of the project.
The MRT-1 project director also said some packages are waiting for JICA's advice. Advance mobilization of four underground packages first has to be paid to the contractor. An underground package has already been launched. Evaluating the rest, JICA approval, technical approval, financial package will be introduced and evaluated only after evaluation. After completing all the activities, approval will be taken from the MRT Board by sending it to JICA again. All the processes may be completed after June.
Asked whether the work will be stopped if the money is returned, the project director said, there is no possibility of slowing down the work due to returning the money as the JICA has all the information about the work. If approved, the work will start again from next year. In that case, the tender process and evaluation will start with the money taken back. JICA's project is not reinvestable. We send the bill to Japan, from where the payment is made. They will take the money back according to their safety policy. Because they don't want to pay if everything is not clear. Tk 2,460 crore has been returned. The ongoing work will be completed with Tk 240 crore. Even if the money is taken, they will be used in other packages underground. Although the work is expected to be completed in 2026, it cannot be said for sure.
ARS
