Questions have emerged over whether the bidding process for part of Dhaka’s MRT Line-1 is being structured in a way that favors Japanese contractors, potentially inflating project costs.

The dispute centers on Package-8 of MRT Line-1—one of 12 construction segments—where three bidders were shortlisted: two Japanese-led joint ventures and a consortium led by China Civil Engineering Construction Corporation (CCECC). Industry insiders claim that procedural hurdles are being introduced that could disqualify the Chinese bidder before financial offers are opened, limiting competition to only the Japanese bidders.

The Dhaka Mass Transit Company Limited (DMTCL), which oversees metro construction, is developing two major projects: MRT Line-1 from Kamalapur to Hazrat Shahjalal International Airport (and a branch from Kuril to Purbachal) and MRT Line-5 (North) from Hemayetpur to Bhatara. Both are financed by the Japan International Cooperation Agency (JICA) and are still in the tendering stage.

According to DMTCL officials, MRT Line-1’s underground section will stretch about 20 km with 14 stations, while the elevated Purbachal branch will run 11.25 km with seven stations. Package-8 involves building 6 km of elevated track, four stations, and a 172-meter steel bridge over the Balu River.

Critics say the tender specifications—for example, requiring tunnel works to use the “one pass joint” method and mandating Japanese-sourced steel for the bridge—tilt the playing field toward Japanese companies. In the bridge case, only a few Japanese mills, such as Kobe Steel, produce the approved material. Although the Chinese bidder submitted certification from an authorized Japanese supplier, evaluators reportedly insisted on a document directly from Kobe Steel, a requirement not clearly stated in the original tender.

In previous MRT Line-1 packages, only Japanese contractors bid, and their offers exceeded earlier cost estimates by around 125 percent. A DMTCL official noted that if the Chinese and Japanese bids for Package-8 were both opened, it would be easier to determine whether Japanese pricing is disproportionately high.

The interim government has paused contractor appointments after observing steep bid prices. Negotiations with JICA are reportedly underway to relax loan conditions and encourage broader competition, in the hope of bringing down per-kilometer costs—which, for MRT Lines 1 and 5, have climbed to over Tk 30 billion, far above costs for similar metro systems in other Asian countries.