ADB intends to give $2.5b for MRT-5’s southern route

The Asian Development Bank (ADB) has showed its intention to mobilise $3.5 billion along with a co-financier for the implementation of the southern route of the Dhaka Mass Rapid Development Project's MRT Line-5, officials said.

It was assured at a meeting on "Co-financing issue of Dhaka Mass Rapid Transport Development Project (MRT Line-5)" held at the Economic Relations Division (ERD) last month.

The 17.40km line from Gabtoli to Dasherkandi via Shyamoli, Russel Square, Karwan Bazar, Hatirjheel and Aftabnagar will have both underground and elevated sections.

It will have 15 stations and would cost an estimated Tk 53,000 crore ($5.5 billion). The deadline for the project is 2030.

"We are discussing with the ADB to finalise the negotiation for financing the project. The ADB has informed us about its intention to provide $2.5 billion as a lead financer and another $1 billion will be mobilised from a co-financier," said Mostafizur Rahman, additional secretary at the ERD and chief of its ADB wing.

It will take another two months to finalise the negotiation, he said.

"The ADB is positive about financing the project to ease the traffic congestion of Dhaka."

After the partial launch of metro rail, the authorities are planning to start the physical work for other lines such as MRT Line-5.

At last month's meeting, Soon Chan, senior country specialist of the ADB, informed the ERD about the intention of the Manila-based multilateral lender to provide $2.5 billion for the project. The rest could be funded by co-financiers.

ERD sources said the ADB and the ERD would separately communicate with the Korean Exim Bank for confirming its financing of $1 billion.

The ERD also suggested revisiting the estimated cost of the project as it is higher than the same project being implemented in India, said an official.

The feasibility studies for the southern route of the MRT Line-5 were done in November last year, but the authorities are yet to find a financier for the project.

State-owned Dhaka Mass Transit Company Ltd is in charge of implementing the 130km metro network of six lines.