B Mirror Report: The newly elected government has decided to move forward with the Japan International Cooperation Agency (JICA)-supported MRT-1 line construction project, despite the lender refusing to cancel Japanese tenders with unusually high bidding prices, officials said on Friday.

Dhaka Mass Transit Company Limited (DMTCL) had requested a review of the tenders, but in a meeting last week in Dhaka, JICA decided against cancelling the high-cost bids for two separate packages CP-02 and CP-05 of Bangladesh’s first underground metro-rail project.

However, JICA has agreed to assist DMTCL in reassessing bids for the remaining nine packages of the MRT-1 line, which runs from Airport to Kamalapur, officials said.

During the last interim government, the state-run DMTCL sought cancellation of the abnormally high-cost bids for the CP-02 (Depot Civil & Buildings) and CP-05 (mainline & stations from Airport to Nadda) packages of the 20km metro line. Under the supervision of the Economic Relations Division (ERD), DMTCL and its line ministry met with JICA to request cancellation and to resume work on the MRT-1 project, which has been halted for over one and a half years.

According to sources, DMTCL argued that the bids for CP-02 and CP-05 were far above official estimates. But JICA did not agree, citing that both bids were approved nearly two years ago under the previous Sheikh Hasina government and cannot be cancelled under JICA and Bangladesh procurement rules. JICA also warned that shelving the tenders now would likely result in even higher costs if fresh bids were invited.

DMTCL has requested JICA to review all bids for the other nine packages, as most quoted prices are also above official estimates. “JICA has agreed to help us reassess the bids. If needed, we will meet with shortlisted bidders to negotiate lower prices,” said a DMTCL official.

A Roads and Highways Division official added, “The tenders were floated at least three years ago and shortlisted about two years back. Retendering now could increase costs further. It is better to proceed with the ongoing bids while renegotiating prices.”

DMTCL has consistently argued that accepting the current bids would be neither prudent nor legally defensible, as total project costs could rise to Tk 960 billion, nearly double the original Tk 525.61 billion estimate.

Bidding for CP-02 (Depot Civil & Buildings in Rupganj) reportedly reached Tk 33.53 billion, 172% higher than the official estimate of Tk 12.30 billion. For CP-05 (tunnel & stations from Airport to Nadda), the lowest bid was Tk 50.55 billion, 26% above the official estimate of Tk 40.12 billion.

Sources said that the Japanese contractor Tokyu Construction and Mitsui & Co has been shortlisted for the CP-02 package, while the Japan-Bangladesh joint venture company Tekken Corporation, Abdul Monem Ltd, and Abenikko has been shortlisted for CP-05.

Government officials warned that the project will face delays, and the completion deadline may shift from 2026 to 2030, depending on negotiations and reassessment of the remaining tenders.