B Mirror Report: The government is set to hold an important meeting with Japanese development partner Japan International Cooperation Agency (JICA) to resolve a long-running dispute that has delayed the construction of Bangladesh’s first underground metro rail line.

Officials hope the discussion will help clear obstacles and pave the way for the implementation of the MRT-1 project between Airport and Kamalapur, which has remained stalled for several years.

According to officials, the government will sit with JICA on Tuesday in a meeting organised by the Economic Relations Division (ERD). Representatives from the Dhaka Mass Transit Company Limited (DMTCL) and the Ministry of Road Transport and Bridges are also expected to attend the talks.

The dispute centres on unusually high bidding prices submitted for several construction packages of the project. DMTCL has sought permission to cancel and re-tender some contracts, arguing that the proposed costs are abnormally high. However, JICA has opposed the move, warning that cancelling the tenders could violate the loan agreement and cause further delays.

Officials said the disagreement between DMTCL and JICA over bidding prices has kept the MRT-1 project stalled for years.

Sources said DMTCL wants to cancel tenders for two major contract packages—CP-02 and CP-05—after bidders quoted prices far higher than official estimates. But the Japanese lender has not approved the cancellation request.

A senior ERD official said the meeting has been called to resolve the crisis and find a way forward for the project.

The discussion will mainly focus on DMTCL’s proposal to cancel and re-invite tenders for the two packages following what it described as an “abnormal” rise in costs proposed by Japanese bidders.

According to DMTCL officials, accepting the current bids would not be prudent and could push the overall project cost close to Tk 960 billion, almost double the initial estimate of Tk 525.61 billion.

For months, the implementing agency has remained in a tug-of-war with JICA over the issue. While the Bangladeshi side wants to invite fresh international bids to reduce costs, JICA maintains that the procurement process was conducted fairly and reflects current market realities, including global inflation and risks linked to underground construction.

JICA has also cautioned that cancelling the tenders could breach loan conditions and delay the project by at least 18 to 24 months.

Officials from the Ministry of Road Transport and Bridges said bidding prices for most of the 12 packages under the MRT-1 project are higher than expected. However, the government is specifically seeking permission to cancel the bids for CP-02 and CP-05, where prices are significantly above official estimates.

For the CP-02 package, which involves depot civil and building works at Rupganj, the lowest bid stood at Tk 33.53 billion—around 172 percent higher than the government’s estimate of Tk 12.30 billion.

In the case of CP-05, covering the mainline and stations from Airport to Nadda, the lowest bid was Tk 50.55 billion, about 26 percent higher than the official estimate of Tk 40.12 billion.

A senior ministry official said these figures will be presented during the meeting with JICA to justify the government’s request to cancel and re-tender the packages.

If the dispute remains unresolved, officials fear the project completion deadline may be pushed back to 2030 from the current target of 2026.

Sources said Japanese firms Tokyu Construction and Mitsui & Co. have been shortlisted for the CP-02 package. Meanwhile, the CP-05 package has shortlisted a Japan-Bangladesh joint venture comprising Tekken Corporation, Abdul Monem Ltd and Abenikko to build tunnels and stations between Airport and Nadda.