Dhaka BRT Project Faces Delays and Cost Hike

Strategic Insights -

The Dhaka BRT (Bus Rapid Transit) project, designed to connect Gazipur to Dhaka airport, has made significant progress with 77% of civil works completed. However, delays in procuring 187 buses have driven up project costs, leading the government to reject the latest revision. The project's cost has ballooned due to the inflated prices of diesel-run and electric buses, with the company revising the costs to Tk 30 million each and Tk 8 million each, respectively.

Key Takeaways:

  • The Dhaka BRT project has completed 77% of civil works, but delays in bus procurement have sharply increased project costs.
  • The company has revised the cost of diesel-run buses to Tk 30 million each and electric buses to Tk 8 million each in its fourth revision.
  • The latest revision proposes a 54.57% increase in costs, with a revised total of Tk 65.97 billion.
  • The project's timeline has been extended to 2029, with an additional five years requested to complete bus procurement, ITS installation, and remaining civil works.
  • Legal complications related to purchasing buses remain unresolved, with the BRT Company's board failing to endorse the evaluation committee report for buying 137 diesel buses.
  • The Anti-Corruption Commission (ACC) is investigating allegations of corruption or politically motivated interference in the first tender.
  • The project's original timeline was to operate articulated buses, but it was later changed to electric buses, and the first tender deviated from the plan.
  • The first tender saw bid prices of Tk 1.88 billion and Tk 2.03 billion, while the latest tender saw significantly inflated quotes of Tk 3.60 billion and Tk 12 billion.

Statistics:

  • 77% of civil works have been completed for the Dhaka BRT project.
  • The DRT Company has revised the cost of diesel-run buses to Tk 30 million each and electric buses to Tk 8 million each.
  • The proposed fourth revision seeks Tk 65.97 billion, a 54.57% increase from the previous approved amount of Tk 42.68 billion.
  • The project's original timeline was to be completed in 2024, but it has been extended to 2029.
  • The first tender for 137 diesel buses saw bid prices of Tk 1.88 billion and Tk 2.03 billion.

Sources:

  • "Dhaka BRT project faces delay, cost hike" - The Daily Star, [Not specified]
  • "BRT Company seeks ECNEC nod to revise project" - The Financial Express, [Not specified]
  • "Anti-Corruption Commission starts investigation into BRT project" - Dhaka Tribune, [Not specified]
  • "Dhaka BRT corridor project: Tenders, bids, and corruption allegations" - The Business Standard, [Not specified]
  • "Revised Development Project Proposal (RDPP)" - Dhaka BRT Company Limited, [Not specified]