Bangladesh Metro Rail Costs May Double Due to Stronger Dollar and Inflation

The government's independent expert committee has found that the costs of building Metro Rail Line-1 and Line-5 in Bangladesh could be more than double their original estimates.

The increased costs are due to a 20% appreciation of the US dollar against the taka, inflation at a 5% rate, and higher tax rates, according to Shamim Z Bosunia, who led the seven-member committee.

The estimated cost for MRT Line-1 has risen from Tk 52,561 crore to almost Tk 110,000 crore, while the cost for MRT Line-5 has increased from Tk 41,238 crore to Tk 88,000-90,000 crore.

Bosunia noted that Bangladesh has to import many materials, unlike India, which can source them locally.