Govt Proposes Tk 11,260 Crore for Dhaka’s Underground Metro Rail Projects

In a major push toward modernizing the capital’s public transportation system, the government has proposed a combined allocation of approximately Tk 11,260 crore for two ongoing underground metro rail projects in the FY2026-27 national budget.

According to Finance Ministry sources, the substantial allocation reflects the government's priority to address Dhaka’s chronic traffic congestion and accelerate the development of sustainable mass transit infrastructure.

Major Allocations for MRT Line-1 and MRT Line-5

Under the proposed budget:

• Tk 7,350 crore has been allocated for MRT Line-1, Bangladesh’s first fully underground metro rail project.
• Tk 3,910 crore has been earmarked for MRT Line-5 Northern Route, another key underground metro corridor designed to strengthen east-west connectivity across the capital.

The two projects together account for one of the largest transportation infrastructure allocations in the proposed national budget.

Significant Increase in Funding

Budget analyses indicate that the proposed allocation represents a substantial increase compared to the current fiscal year's funding levels.

For FY2026-27:

• Funding for MRT Line-1 is expected to increase by nearly nine times.
• Funding for MRT Line-5 (Northern Route) is projected to rise by approximately five times.

The increase is intended to accelerate implementation of the projects and ensure steady progress on critical construction activities.

Officials involved with the projects believe the enhanced funding will facilitate rapid advancement of several key components, including:

• Land development and site preparation.
• Tunnel boring operations.
• Construction of underground stations.
• Development of core rail infrastructure.
• Installation of supporting transportation systems.

The allocations are expected to help maintain project momentum and reduce implementation delays.

The underground metro projects are considered vital to improving mobility in Dhaka, one of the world's most densely populated cities.

Once completed, the new lines are expected to:

• Reduce travel time across the capital.
• Ease pressure on road-based transportation.
• Lower traffic congestion.
• Improve urban connectivity.
• Support environmentally sustainable public transport solutions.

Officials expect the increased budgetary support to play a crucial role in advancing the construction schedule and bringing the capital’s underground metro network closer to reality.

DBTech/BRTA/MUM/OR