The Japan International Cooperation Agency (JICA) has flatly rejected a proposal from the Dhaka Mass Transit Company Limited (DMTCL) to cancel the bidding process for two major contract packages under the MRT Line-5 (North) project, expressing “disappointment” over the request.

In a letter sent on Sunday to the project director, Yoshida Hiroshi, senior representative of JICA, wrote that the agency “will not concur on any such request.” The letter emphasized that the reasons cited for the cancellation—breaches of sections 5 and 10 of JICA’s legally binding procurement guidelines—were not acceptable within the framework of the loan agreement.

DMTCL had earlier sent two separate letters to JICA on November 2 and 3, seeking to scrap the bidding process for Contract Packages CP-5 and CP-2, arguing that the evaluated bid prices significantly exceeded the allocations set out in the project’s Development Project Proposal (DPP).

Confirming receipt of JICA’s response, DMTCL Managing Director Faruque Ahmed said they had held a meeting with representatives from JICA, the Rail and Road Adviser, and the Road Transport and Highways Division secretary to discuss the matter.

In his letter—now circulating on social media—Yoshida noted that DMTCL had already completed both technical and financial evaluations, and had concluded that the lowest evaluated bids were substantially responsive, competitive, and acceptable. JICA’s earlier concurrence was based on a shared understanding that the evaluation process had been conducted properly and the bid prices reflected fair competition.

The Tk 412.38 billion MRT-5 North project had received JICA’s final concurrence for CP-5 on September 5, 2025, and for CP-2 on February 20, following a process that began in 2023 and 2024, respectively.

After assuming office in February, the new DMTCL management—led by a Bangladeshi expatriate MRT expert—raised concerns about high bid quotations and the limited pool of Japanese contractors participating in the tenders. The company’s decision to reevaluate all bidding processes has since slowed down progress on several metro rail projects.

Meanwhile, the Japanese Embassy in Dhaka has also sent a letter to the Bangladesh government, urging it to expedite the implementation of all MRT projects to avoid further delays and preserve project momentum.