Dhaka MRT Development (Line-2) and Institutional Strengthening

pipeline

The proposed Dhaka Metro Line-2 initiative aims to establish a climate-resilient, inclusive, and high-impact urban transport solution for Dhaka through a Multi-phase Programmatic Approach (MPA). The Program will focus on both the construction of a new mass transit line—spanning approximately 23.5 kilometers with elevated and underground sections—and institutional strengthening of the Dhaka Mass Transit Company Limited (DMTCL). The first phase of this MPA aims to facilitate the technical, financial, and institutional groundwork required for the successful delivery of a mass rapid transit system that is resilient to climate risks and attractive to private investment.The project is structured around three key components:• Component 1: Feasibility Study, Detailed Design, and Bidding Documents Preparation. This component (estimated cost: USD55-60 million) supports the comprehensive technical and financial preparation for Dhaka MRT Line-2. Activities include a full feasibility study, detailed engineering and design (covering route alignment, station architecture, utility plans), traffic and ridership modeling, and the preparation of procurement strategies and tender documents. Integrated within this process are environmental and social assessments, climate and disaster risk analyses, and development of a robust financing strategy, incorporating mechanisms such as Transit-Oriented Development (TOD), Land Value Capture (LVC), and revenue securitization.• Component 2: Institutional Strengthening and Financing Strategy. With an estimated cost of USD5-10 million, this component aims to enhance DMTCL’s institutional capacity for metro planning, implementation, and operation. Key activities include creating a governance and operational roadmap, targeted capacity-building and training for staff, knowledge-sharing through workshops and international study tours, and development of a comprehensive funding and financing plan. This will cover farebox and real estate revenue, donor funding, PPP structuring, and accessing climate-linked financial instruments.• Component 3: Contingent Emergency Response (CERC). This component establishes a dedicated mechanism for rapid mobilization and response in case of urgent needs or emergencies, ensuring project adaptability and resilience.Overall, the initiative aims for technical excellence, institutional resilience, and sustainable financing to underpin the creation of a modern, inclusive, and climate-resilient urban transit network in Dhaka.