Staff Reporter:
State Minister for Planning Md Zonayed Abdur Rahim Saki yesterday said more metro rail lines are needed in Dhaka and its surrounding areas and the country’s other cities to meet the growing de-mand for public transport and improve urban mobility.
“More metro lines are needed in Dhaka, and more metro lines have to be built around Dhaka and further expand in other big cities of the country,” he said while briefing journalists at the NEC Con-ference Room in the city’s Sher-e-Bangla Nagar area after yesterday’s ECNEC meeting.
ECNEC Chairman and Prime Minister Tarique Rahman chaired the meeting held at Bangladesh Secretariat. Planning Division Secretary SM Shakil Akhter was present at the briefing.
Saki said the government also needs to take metro rail services to other major cities as urbanization and demand for modern public transport continue to grow.
The state minister said Bangladesh now needs to develop its own institutional and technical capac-ity in metro rail construction as the country has already gained practical experience from operating its first metro rail system.
“We have built a metro rail line, trains are running and people are enjoying its benefits. Now we need to develop the capacity to participate in different components of metro rail construction,” he said.
Saki said technology transfer would remain an important consideration in future projects so that Bangladesh can gradually reduce its dependence on foreign expertise.
On questions about the cost of MRT Line-5 Southern Route compared with other metro rail pro-jects, the state minister said differences in project scope, underground construction, detailed de-sign, financing conditions, exchange rates, inflation and taxes contributed to variations in project costs.
“The initial estimate of the project was substantially higher, but the Planning Commission scruti-nised the proposal and brought down the cost before placing it before ECNEC,” he said, adding that a technical committee also examined the cost and financing issues in detail.
Responding to allegations that a consultancy firm had already been selected for the project at a high cost, he said no consultancy contract had been awarded.
“The project has only been approved. After approval, the project appointment process will take place, then tender documents will be prepared and subsequently the vendor will be appointed,” he said.
The state minister said the government could not accept claims of excessive consultancy expendi-ture unless a formal notification of award or contract showed that a particular firm had received the work.
Regarding the sharp rise in the interest rate of Japan International Cooperation Agency (JICA) fi-nancing, he said the delay in taking decisions on the Japan-funded projects had affected the fi-nancing terms.
The interest rate, which had earlier been considered at around 0.7 percent, had risen to about 3.05 percent, he said, adding, “JICA could revise the rate again if the agreement remained pending.”
“The government has negotiated as much as possible in the national interest,” he said.
The state minister ruled out international pressure behind placing the projects before ECNEC, say-ing the proposals had followed the Planning Commission’s prescribed scrutiny process.
He said the government placed some proposals together because the financing terms could change if the agreements remained pending beyond the applicable period.
On questions about the large increase in the cost of some ongoing metro rail projects, he said the initial feasibility studies often relied on preliminary estimates while detailed design later identi-fied additional requirements and changes in the scope of work.
He said deeper underground stations, additional structures and other changes in the scope of work could substantially increase costs.
The state minister also said the government was reviewing the project preparation process to pre-vent such cost escalation.
“Project preparation has to be redesigned, and we have to close the gaps that create opportunities for wastage and corruption,” he continued.
Zonayed Saki said the government was working to amend project implementation guidelines and strengthen scrutiny of feasibility studies, detailed designs and cost estimates before approving ma-jor projects.
The state minister further said the government would also prioritize renewable energy, including solar power, in public infrastructure projects where feasible.
He said the government’s broader objective was to ensure that public investment produced long-term benefits through improved mobility, reduced travel time, higher productivity and better val-ue for money.
