Economy
Underground Metro Rail construction likely to begin on Jan 26
The physical work of the country’s first-ever underground metro rail line will begin on January 26, setting off a flurry of activity for the second-biggest infrastructure project in Bangladesh.
This work will begin with Prime Minister Sheikh Hasina laying the foundation stone of the Tk 52,561.43 crore project, formally known as Mass Rapid Transit (MRT) Line-1, at a program in the capital’s Purbachal area.
The Road Transport and Highways Division called a meeting on Monday (16 january) at Rajuk’s Purbachal site office over the preparation of the event, he said.
Civil work of the project, the biggest one in the transport sector, will start with land development for depot at Pitalganj in Narayanganj, said Kashem.
Dhaka Mass Transit Company Ltd (DMTCL), the implementing agency of the metro rail project, already signed a contract with Japan-Bangladesh joint-venture firm to develop the depot. The firm of Tokyu Construction Co Ltd of Japan and Max Infrastructure Ltd of Bangladesh will do this within 910 days for Tk 607.65 crore.
The 2,400MW Rooppur Nuclear Power Plant is the single largest project undertaken in Bangladesh with a cost of Tk 113,092 crore.
Once the MRT Line-1, which physical work was supposed to begin in December 2020, is completed, it will be able to carry 8 lakh passengers daily. The official deadline for the project is December 2026, according to the project documents.
The 31.24 km rail line will have two parts — a 19.87 km part from Hazrat Shahjalal International Airport to Kamalapur (Airport route) will be underground and around a 11.36km part will be elevated from Notunbazar to Purbachal (Purbachal route).
The airport route will have 12 stations and the Purbachal route nine stations, seven of which will be above the ground. Two stations on the Purbachal route — Nadda and Notunbazar — will be underground and used as an interchange for passengers to switch between routes.
MRT Line-5 (northern route) between Hemayetpur and Bhatara will have an interchange at Notunbazar station of MRT Line-1, the documents added.
Of the Tk 52,561.43 crore required for MRT-1, the government will provide Tk 13,111 crore and Japan Tk 39,450 crore as soft loan.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
