Written by The Banking Post
Japan International Cooperation Agency (JICA) has flatly rejected a proposal from Dhaka Mass Transit Company Limited (DMTCL) to cancel two key contract biddings under the MRT Line-5 North project, expressing “disappointment” over the request.
In a letter sent Sunday to the project director, JICA senior representative Yoshida Hiroshi stated, “JICA will not concur on any such request.” The letter emphasised that the cancellation move breached Sections 5 and 10 of JICA’s legally binding procurement guidelines, as stipulated in the loan agreements.
DMTCL had sought JICA’s approval in letters issued on November 2 and 3, arguing that the evaluated bid prices for contract packages CP-5 and CP-2 “significantly exceeded the allocations specified in the Development Project Proposal (DPP).”
Confirming receipt of JICA’s response, DMTCL Managing Director Faruque Ahmed said they had held a meeting with JICA officials, the Rail and Road Adviser, and the Road Transport and Highways Division secretary to discuss the issue.
JICA, however, expressed reservations about the timing and justification of the cancellation. The agency noted that both technical and financial evaluations had already been completed, concluding that “the lowest evaluated bids for both packages are substantially responsive, competitive, and acceptable.”
The agency reminded that concurrences for both packages were issued based on a “shared understanding that due process had been followed and the evaluated bid prices reflected a fair and competitive outcome.”
The Tk 412.38-billion MRT-5 North project received JICA’s final concurrence on the CP-5 bid evaluation on September 5, 2025, and CP-2 on February 20, following a multi-year process initiated in 2023 and 2024.
Since the appointment of the new DMTCL management, led by a Bangladeshi expatriate MRT construction expert in February, the company has flagged high bid quotations and a limited pool of Japanese firms participating in the tenders.
This review process has reportedly slowed progress on metro-rail projects, prompting the Japanese Embassy to urge the government to accelerate the implementation of all MRT lines.
The standoff marks a rare instance of open disagreement between the two sides, potentially delaying one of Dhaka’s most important urban transport initiatives.
