ADB Sanctions US$4.5 Billion Funding Package for Dhaka Metro Line 5

Dhaka, Bangladesh (Metro Rail Today): In a significant development for Dhaka's transportation infrastructure, a comprehensive proposal has been submitted to Bangladesh’s Ministry of Planning for the construction of the southern section of MRT Line 5. This proposal comes on the heels of the confirmation of a substantial US$4.5 billion funding package.

The funding package, totaling US$5.1 billion, will be supported by the Asian Development Bank (ADB) and Korea. The ADB has pledged US$3 billion, while Korea will contribute US$1.5 billion. The remaining portion of the project cost will be covered by the government of Bangladesh.

The ADB's financial support will consist of a combination of concessional and non-concessional loans, with a repayment period spanning 30 years and a five-year grace period. This funding from the ADB has facilitated the completion of crucial preliminary phases, including feasibility studies, engineering design, and procurement documentation.

Korea's contribution is part of a broader framework agreement, signed in May 2023, to extend soft loans to Bangladesh totaling up to US$3 billion between 2023 and 2027. These loans carry an incredibly low interest rate of 0.01-0.05% and feature a generous repayment period of 40 years, with a 15-year grace period.

The southern section of MRT Line 5 is anticipated to commence operations by 2030. This segment will stretch from Gabtoli in western Dhaka to Dasherkandi in the east, traversing key areas such as Kalyanpur, Shyamoli, Asad Gate, Russell Square, Karwan Bazar, Hatirjheel, Tejgaon, and Aftabnagar.

The line will consist of 11 underground stations spanning 13 kilometers from Gabtoli to Aftabnagar, with an additional four elevated stations covering the final 4.1 kilometers to Dasherkandi. Commuters can expect a journey time of 28 minutes between Gabtoli and Dasherkandi, with trains running at intervals of 4 minutes and 30 seconds.

With Dhaka's population projected to reach 30 million by 2035, the Bangladesh government is taking proactive measures to address traffic congestion and improve air quality. The construction of a six-line metro network spanning 140 kilometers by 2030 is a crucial component of this strategy, with MRT Line 5 playing a pivotal role in enhancing the city's transportation infrastructure.

The securing of a substantial funding package for the southern section of MRT Line 5 marks a significant milestone in Dhaka's journey towards a more efficient and sustainable transportation network. With strong financial backing from international partners and meticulous planning, this project is poised to contribute significantly to Dhaka's development and improve the quality of life for its residents.