23/02/2026
Bangladesh’s two new metro rail projects—MRT Line-1 and MRT Line-5 North—are facing massive cost hikes, with total expenses now projected at Tk184,500 crore (USD 16.8 billion), more than double the per-kilometer cost of the existing Uttara–Motijheel line.
The sharp rise is mainly due to JICA’s restrictive loan rules, which limit bidding to Japanese contractors, and the inflated bids submitted by those firms, sometimes nearly four times higher than official estimates.
While the interim government avoided making a decision, the newly elected BNP-led government must now decide whether to proceed, renegotiate loan terms, or revise project plans. Analysts warn that without competitive bidding and stricter oversight, these mega projects could push Bangladesh toward a financial crisis.