The government is likely to get highest-ever funds from Japan to construct next mass transit corridor from Hazrat Shahjalal International Airport (HSIA) to Kamalapur Railway Station.
The assurance about around US$ 6.0 billion was given during the meetings between the ministry concerned and agency and a mission of Japan International Cooperation Agency (JICA) last week.
Officials said the mission talked with the officials of the Ministry of Road Transport and Bridges (MoRTB) and Dhaka Mass Transit Company Ltd (DMTCL) and discussed the issues of project formulation and implementation.
The mission also set some actions needed to be taken to get the loan agreement signed in the next Official Development Assistance (ODA) which is the 40th Yen Loan package, they added.
The loan agreement will be signed as per the JICA's new ODA terms and conditions which mean 1.0 per cent interest with 30 years of repayment period and 10 years' grace period.
JICA has been providing all kinds of support to formulate policy, planning and implementing the first mass transit line named Mass Rapid Transit line-6 (MRT-6).
It provides 60 per cent financial assistance and full technical support to the Tk 220 billion MRT project for setting up the country's first corridor from Uttara to Motijheel.
JICA has also conducted the feasibility study on MRT-1 and part of MRT-5 as proposed in the revised strategic transport plan (RSTP).
But sources said the JICA mission stressed the need for completing emergency actions on depot site selection, approval of technical assistance and development projects on MRT-1 and other related studies before the next mission visit.
The JICA's appraisal mission is likely to arrive in November this year to confirm the proposed loan.
Though the MRT-1 will be implemented under a project named Dhaka Mass Rapid Transit Development Project line-1, DMTCL will take over it with the recruitment of necessary staff.
DMTCL has already started recruiting manpower.
Sources said the JICA mission has expressed reservations about the selection of the depot site by DMTCL for the MRT-1 as it is mostly privately-owned land. Huge fund and time would be required for land acquisition.
DMTCL had chosen a site of 38 hectares of land in Roopganj which would also need to formulate an expensive resettlement plan.
The MRT-1 project was formulated by the Dhaka Transport Coordination Authority as per its mandate by law following the RSTP.
An expression of interest has already been called to select the general consultant for designing the route from HSIA to Kamalapur station with a loop with Purbachal.
The general consultant will carry out basic design for electrical and mechanical system and rolling stocks, detailed design on main lines and stations, tender assistance, facilitation of implementation of environmental management plan, resettlement plan and environmental monitoring plan.
The MRT-1 is among the five MRTs proposed in the revised strategic transport plan (RSTP) which was approved in August last year.
The 20-year transport policy also recommended two bus rapid transit lines to meet the city's growing traffic demand and ease chronic traffic jam.
After conducting the feasibility study, the JICA signed a 5.59-billion Yen assistance for the MRT-1 project under its 38th ODA.
