Local firm Contech Ltd, the prequalified bidder for construction of a 52-kilometre metro rail system in Dhaka city, formed a consortium with Bangladesh Sena Kalyan Sangstha for logistic support.

The consortium was formed with the Sangstha to facilitate financial matters, security, high quality operation and proper maintenance of the system during the entire BOT (built, operate and transfer) period, said Contech Managing Director engineer Masud Reza.

The consortium has been formed after approval from the army headquarters, a high official of the Sangstha said.

Masud Reza in a letter to the government also sought army deployment during the underground construction.

Army deployment is required for controlling and diverting traffic, providing necessary security and handling the utility lines of Wasa, Desa, T&T and Titas gas along the proposed metro lines, he said.

"Army engineering corps will be used to maintain high quality of the work. Besides, in the country only the army has necessary equipment and full capability to provide logistics support in a mega project like the Dhaka subway," Masud said.

He said the army can set up field laboratories, provide full-time supervision during the construction work along with the local and foreign consultants and help maintain the environment codes.

The Contech will pay due rent for using army construction equipment and other facilities under the supervision of Sena Kalyan Sangstha, he added.

The company submitted a revised proposal following a request from the government and is now waiting for a Letter of Intent for undertaking the construction work, sources said

The company, which got assurances from donor agencies of longterm soft loan for setting up the 52-kilometre metro rail, proposed constructing the subway at a cost of Tk 5,200 crore without any financial involvement of the government.

The company proposed to set up six major routes in Dhaka in three years and handover the system to the government after 20 years of operation. The company also committed to keep the fares in the subway lower than those in surface transport system.

Meanwhile, the government is actively considering formation of an independent metro railway authority for supervising the work of the underground rail system in private sector.