Govt forming separate company for building Dhaka subways
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Tuesday
February 07, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
TUESDAY, FEBRUARY 07, 2023
Govt forming separate company for building Dhaka subways

Infrastructure

Mehedi Al Amin
23 March, 2021, 10:25 pm
Last modified: 23 March, 2021, 10:32 pm

Related News

  • Initiatives on to remove barriers to good governance: NGO Bureau DG
  • Potentials are even greater, but governance, politics matter
  • Why Bangladesh needs mandatory environmental, social and governance reporting
  • Governance failure main obstacle to recovery
  • Dhaka Subway: Traffic woes to be eased further by 2030

Govt forming separate company for building Dhaka subways

Mehedi Al Amin
23 March, 2021, 10:25 pm
Last modified: 23 March, 2021, 10:32 pm
Representational Image Collected
Representational Image Collected

Highlights

  •  The management contract is simple from the private sector's point of view
  •  The private party is responsible for operating the project.
  •  Government is responsible for all investment.
  •  Government will get the ticket revenues.
  •  Government can collect revenues from other sources like
  1. General taxation,
  2. Pollution charge
  3. parking charge.
  • It will be easy to borrow high technical and operational standards from experienced foreign operators.
  • Local staff will develop skills for next phase implementation.

The government is going to form a separate company to build the Dhaka subways as the consultancy firm Typsa believes that building the project in this model, which is widely used around the world, will attract the private companies.

The Bangladesh Bridge Authority also thinks that it is difficult to implement such a project without forming a separate company.

Spain-based consultancy firm Typsa, who is preparing the feasibility study of the Dhaka Subway Project, submitted an interim institutional management report to the Bridge Authority under the study recently.

According to the consultant firm, the management contract is relatively simple from the private sector's point of view in this model. The private party will be responsible for operating the subway and getting paid based on the achievement of promised performance targets.

On the other hand, the government will be responsible for all the investment and get access to ticket revenues. If the ticket revenues alone are not enough for the payments of the management fees, the government can pool other revenue sources, such as general taxation, pollution or congestion charge, and parking fees.

Quazi Muhammad Ferdous, chief engineer of Bangladesh Bridge Authority, told The Business Standard, "Implementation of this kind of project is not possible without forming a separate company.

"The process of forming a company is going on. We are working on forming the company by enacting a separate act in the parliament," he said. 

Currently, the Metro Rail and Bus Rapid Transit routes are being built by forming the Dhaka Mass Transit Company Limited and Dhaka Bus Rapid Transit Company Limited respectively. Currently one bus rapid transit and one metro rail line are under construction.

Although Typsa suggested creating a separate company aiming to attract the private companies for the subway project, Moazzem Hossain, a professor in Bangladesh University of Engineering and Technology's civil engineering department, does not think that foreign companies will be interested in it.

He said, "Projects like subways must be done by forming separate companies. But, such projects are not profitable anywhere in the world. These projects are implemented for the purpose of public service and private companies do not seem to be interested in the operation that way."

"So, ultimately the government has to operate the subway project. However, in that case, their aim should be to manage the project with as little subsidy as possible," Professor Moazzem added.

Supporting the idea of forming a separate company, Typsa mentioned in the interim report that there is a well-functioning private sector participation model in the Bangkok subway. The contract between the government and the private party is clear and legally binding.

They also said it will be possible to borrow high technical and operational standards from experienced foreign operators for a limited time period of 5-15 years.

It is also possible to foster technical and operational skills of local staff during the same period so that local partners will be able to implement the next phase of the project.

The subway routes

The feasibility study for constructing the subways is in its final stage. According to the study, it is feasible to build nine subway routes in total to establish an underground communication network between Dhaka city and the surrounding areas within the next 30 years.

One of these routes is a 32 km subway from Gabtali to Bholabo Union Road. The second route from Bhawal in Keraniganj to Thulthulia in East Khilgaon is 16 km long.

The proposed third subway (17.31 km) will be from Bashundhara River View to South Gabtali.  Another 29.40 km route will be from Hazaribagh to Purbachal North.

There will be a 29 km subway from Jhilmil to Tongi Junction and a 23 km subway will be from Shahkabir Mazar Road to Sadarghat.

In addition to these, the consultant firm has proposed the construction of subways from Keraniganj to Sonapur (19.5 km), from Jahangirnagar University to Narayanganj (47.54 km), from Teghariya Bazar to Narayanganj (13.83 km), from Tongi Junction to Nabari (16.99 km), and from Gabttali to Jahangirnagar University (15.52 km).

Bangladesh / Top News

Governance / Separate Company / Dhaka Subways

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Infographic: TBS
    FDI from US halves after sanctions
  • Muhammet Ruzgar, 5, is carried out by rescuers from the site of a damaged building, following an earthquake in Hatay, Turkey, February 7, 2023. REUTERS/Umit Bektas
    Rescue workers 'exhausted' as earthquake deaths cross 5,000 in Turkey, Syria
  • Photo: Reuters
    Watch: Ronaldo greets Bangladesh, says 'Salam Alaikum'

MOST VIEWED

  • File Photo/TBS
    60% of Dhaka airport's third terminal construction done: Mahbub
  • With 80% progress, country’s first tourist rail speeding to its deadline
    With 80% progress, country’s first tourist rail speeding to its deadline
  • Illustration: Collected
    Bitumen crisis slows down Tangail-Rangpur highway construction
  • File photo
    Feasibility study for Ctg metro rail and transport master plan begins
  • Representational Image
    Underground metro to cut airport-Kamalapur travel time to 25 minutes
  • File photo. Prime Minister Sheikh Hasina is expected to inaugurate work on the Bangabandhu Railway Bridge on 29 November. Photo: UNB
    Bangabandhu Rail Bridge will open earlier than expected: Railways minister

Related News

  • Initiatives on to remove barriers to good governance: NGO Bureau DG
  • Potentials are even greater, but governance, politics matter
  • Why Bangladesh needs mandatory environmental, social and governance reporting
  • Governance failure main obstacle to recovery
  • Dhaka Subway: Traffic woes to be eased further by 2030

Features

Nimah designed by Compass Architects- Wooden tiles. Photo: Junaid Hasan Pranto

Trendy flooring designs to upgrade any space

7h | Habitat
Benefits of having high ceilings in your new home

Benefits of having high ceilings in your new home

7h | Habitat
Each Reverse Osmosi plant can produce approximately 8,000 litres of drinking water a day for around 250 families. Photo: Sadiqur Rahman

A drop in the ocean of persistent water crisis

8h | Panorama
Photo: Collected

Get your partner a lovely present this Valentine's Day

1d | Brands

More Videos from TBS

Challenging time waiting for RMG

Challenging time waiting for RMG

6h | TBS Round Table
"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

6h | TBS Graduates
10 cricketers who have played over 400 T20 matches

10 cricketers who have played over 400 T20 matches

6h | TBS SPORTS
Harry Kane sets two record in one goal

Harry Kane sets two record in one goal

6h | TBS SPORTS

Most Read

1
Photo: Courtesy
Panorama

From 'Made in Bangladesh' to 'Designed in Bangladesh'

2
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

3
Master plan for futuristic Chattogram city in the making
Districts

Master plan for futuristic Chattogram city in the making

4
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

5
Belal Ahmed new acting chairman of SIBL
Banking

Belal Ahmed new acting chairman of SIBL

6
Photo: Collected
Crime

Prime Distribution MD Mamun arrested in fraud case

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net