Tk 1.94tn JICA-funded megaprojects face mounting disputes, delays
BY Insider Desk
November 04, 2025

Six major infrastructure projects, worth nearly Tk 1.94 trillion, 76 percent funded by the Japan International Cooperation Agency (JICA), are grappling with design flaws, cost disputes, and missed deadlines, according to a recent Economic Relations Division (ERD) meeting.
Chaired by Additional Secretary Dr. Mohammad Mizanur Rahman, the meeting revealed that unresolved technical, financial, and administrative issues have accumulated, threatening the timely completion of several flagship schemes, including the Matarbari power plant, Dhaka airport expansion, and metro rail projects.
At the Tk 518.55 billion Matarbari power plant, severe boiler faults have halved electricity generation, causing losses of around Tk 11.69 billion since January.
A Tk 1.35 billion repair plan is on the table, but the Japanese-led contractor has refused to bear costs and lodged a Tk 47 billion price escalation claim.
The Tk 213.99 billion expansion of Hazrat Shahjalal International Airport has been hindered by nearly 600 variation orders and ongoing disputes between the Civil Aviation Authority of Bangladesh and its Japanese contractor, resulting in delayed payments and project progress.
Delays and financial disputes have also slowed work on the Jamuna Railway Bridge and the Dhaka MRT Lines 1 and 5, while unresolved claims linger even for completed projects, such as the second Kanchpur–Meghna–Gumti bridges.
Officials warned that without urgent coordination between project agencies, JICA, and the government, Bangladesh risks losing the benefits of its largest Japan-backed infrastructure investments.
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