The Contech Limited, a local firm, has been selected in the pre-qualification bid for constructing the subway and the communications ministry has forwarded the proposal for approval of the committee.

The 10-member committee is considered the apex body for approving proposals of constructing infrastructures by private and foreign investors.

Secretaries from the ministries of finance, economic relation division (ERD), law and president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), president of Foreign Chambers of Commerce and Industry (FCCI) and representatives from Bangladesh Bank and Board of Investment (BoI) usually attend the meeting for discussing all aspects of investment proposals.

The committee may approve the proposal and give green signal to the communications ministry for issuing letter of intent (LoI) in favour of the company or it may send it to the cabinet for final approval, sources said.

If the PICOM passes the proposal, a formal agreement explaining terms and conditions of the project would be signed between the government and the company concerned.

Meanwhile, the company submitted an Environmental Impact Assessment (EIA) report to the government last month on the project of constructing underground rail system. The company proposed to construct 52 kilometre-long subway spending Tk 5,200 crore on build, operate and transfer (BOT) basis.

The Japan Bank of International Co-operation (JBIC) has agreed to provide soft loan for constructing the subway that will create an easy transport system in the densely populated Dhaka.

According to the communications ministry sources, the ministry forwarded the proposal after getting confirmation of the Japanese assistance in this regard. The JBIC representatives called on the high officials of the ministry several times and confirmed their assurances, sources said.

The company claimed that the subway would be constructed on cut and paste basis in the government acquired land without causing any major resettlement. Besides, the company will bear the cost of resettlement, however small, required for implementing the project.

For excavation purposes, the company has selected less important roads to avoid traffic disturbances during the construction. The Bangladesh army would provide logistic support to the company in the construction process and traffic management, according to the proposal.

The route map of the metro rail was drawn in a way so that 80 percent of the city dwellers can have access to the transport system within one kilometre walking distance. The double line metro rail would be interlinked and people will be able to commute from one place to other at a minimum cost.

According to the environmental assessment report, the metro rail system would bring immense benefit to the capital by lessening traffic density on roads, reducing road accidents, abating air pollution and noise level and extend the life of roads.

It would also help people to settle down at the suburban areas to the relief of the heavy pressure of population on the capital.