DMTCL seeks a new funding partner for the Diabari–Tongi segment

The Dhaka Mass Transit Company Limited (DMTCL) is seeking a new development partner for an additional metro rail extension from Diabari to Tongi, even though Japan has already funded the existing 21.7 km MRT 6 corridor now in operation.

Sources say DMTCL is looking for an alternative financier for the MRT 6 extension after the Japan International Cooperation Agency (JICA) signaled reduced interest. A pre-feasibility study—completed early last year by the MRT 6 consultant with JICA funding—indicated that extending the line by around 6 km could boost the system’s daily ridership to 1 million.

Although no formal financing request has been made to JICA, DMTCL informally raised the proposal during a visit by senior Japanese officials a few months ago. “They told us this segment is not currently a priority for Japan,” said an insider.

JICA has been the principal partner in developing MRT 6, supporting the entire process from the pre-feasibility stage in 2012 through to construction and commissioning from Uttara to Motijheel. Japan also agreed to fund the extension from Motijheel to Kamalapur, which began in early 2023.

In addition, JICA is backing MRT 1 and MRT 5 North. However, relations between DMTCL and JICA have soured following changes in DMTCL’s leadership, which highlighted high component costs in JICA-funded projects and raised allegations of overpricing and collusion.

The MRT 6 project cost rose from the original Tk 219.85 billion (including Tk 165.94 billion in JICA loans) to Tk 334.71 billion in its first revision approved in July 2022. JICA’s loan contribution subsequently increased to Tk 197.18 billion.

Tensions worsened when DMTCL objected to what it said were excessively high bid prices—up to 250% above estimates—for several contract packages in the MRT 1 and MRT 5 North projects, and sought re-tendering. JICA rejected that request.

DMTCL Managing Director Faruque Ahmed told members of Reporters for Rail and Road that the Motijheel–Kamalapur section of MRT 6 is slated to open on January 1, 2027. He also confirmed the search for development partners for the Diabari–Tongi extension. Development agencies including the World Bank, ADB, Korean EXIM Bank, and AIIB have expressed interest.

Officials noted that the Diabari–Tongi stretch may be implemented as a separate project rather than part of MRT 6, as it was not included in the line's second DPP revision, now awaiting ECNEC approval.

The pre-feasibility study proposes an 8 km extension connecting eastern and western Dhaka through Uttara and Motijheel, at an estimated cost of over USD 250 million. It recommends five new stations: Diabari Bazar, Sonargaon Janapath (east and west), Tongi Bazar, and Tongi Station.