Bangladesh,Japan sign Dhaka metro rail
Bangladesh, Japan strike deal for Dhaka metro rail
With an endeavor to ease the traffic problems that create havoc mainly in the capital city, Bangladesh on Wednesday signed a loan deal with a Japanese development agency for construction of the country’s first-ever metro rail system.
Traffic in the country’s capital, home to 15 million people, is 
among the slowest in the world with commuters spending three-to-four 
hours in jams daily. A mix of 200,000 motor vehicles and another 
half-million cycle-rickshaws clog the roads.
Officials said the proposed 20.1-kilometre ground and elevated 
railway will stretch across Dhaka from north to south with 16 stations 
and will ferry four million commuters every day, easing the jams 
substantially.
The project will cost an estimated USD 2.8 billion, Japan 
International Cooperation Agency (JICA) Bangladesh chief Takao Toda 
said, adding that his agency will finance 85 per cent of the cost at an 
interest rate of 0.01 per cent.
“The metro-rail will reduce travel time to 36 minutes (to cross 
from north to south Dhaka), which now takes hours,” Toda said at the 
signing of the first phase of the loan deal entailing USD 116.3 million 
for consulting services.
The metro-rail construction will start in 2016 and end in 2021. The
 government may seek investment from other donors for the remainder of 
the cost.
The metro will be the impoverished country’s second-largest 
infrastructure project after a USD 3-billion bridge project over the 
river Padma.
The government says it plans to finance the bridge on its own. 
Early this month, Bangladesh withdrew its request for World Bank 
financing for the high-profile bridge project which has been dogged by 
allegations of corruption involving top government officials.
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