FROM PAGE B1

year, debt servicing costs rose by 10 percent. In Taka terms, the increase was 13 percent, driven mainly by the weaker currency.

Hussain emphasised increasing revenue collection and reducing public spending to keep borrowing in check.

METRO PROJECTS HIT BY RISING COSTS

Cost pressures are not limited to the Rooppur plant. Rather, several metro rail projects in Dhaka also face higher bills.

The cost of Metro Rail Line 6, the country’s first metro service, which now carries several lakh passengers daily on the Uttara to Motijheel route, has fallen slightly to Tk 32,717 crore from Tk 33,472 crore due to lower land acquisition costs under the government-funded portion.

However, costs under foreign loans have risen because of the weaker currency. Consultancy fees and repayment liabilities have increased, including an additional Tk 270 crore in foreign loan repayment linked to the depreciation.

The government approved the latest project costs this week.

Two other metro lines, Mass Rapid Transit-1 and Mass Rapid Transit-5, are also set for cost increases.

When the Japan International Cooperation Agency (Jica) funded projects were approved in 2019, they were valued at Tk 95,000 crore. Since then, the Taka has lost more than 40 percent of its value, meaning significant upward revisions.

An MRT-1 official recently informed Dhaka Mass Transit Company Limited (DMTCL) that the cost of Japan’s funding package would rise to Tk 75,649 crore from Tk 39,450 crore, while the total project was originally estimated at Tk 53,977 crore.

A similar rise is expected for the 20-kilometre MRT-5 line from Hemayetpur to Bhatara through Gabtoli, Mirpur and Gulshan.

The project, split into ten packages, was approved at Tk 41,261 crore. The latest assessment shows Tk 15,527 crore will be needed for just one package, originally priced at Tk 3,968 crore.

Officials said talks are going on between Jica and the government to reduce the overall costs.