# Metrorail to Connect Old Dhaka for the First Time with World Bank Funding

> The World Bank will finance Bangladesh’s MRT Line 2 for the first time, connecting Gabtoli to Demra via Old Dhaka. A $2.5 million grant has been approved for feasibility studies and design work. The original 35km route…

Published: 2026-09-17 · Desk: Latest · Source: The Business Standard

For the first time, the World Bank is set to fund a metro rail project in Bangladesh—MRT Line 2, which will connect Gabtoli to Demra through Old Dhaka. This marks a major shift, as previous metro projects were financed by Japan, ADB, and South Korea.

The World Bank has already approved a $2.5 million grant under a Technical Assistance Project Proforma (TAPP) to support feasibility studies, route design, and tender preparations. However, this grant will only be confirmed if all formalities are completed within the deadline—August.

An inter-ministerial meeting chaired by ERD's acting World Bank Wing Chief Mirana Mahrukh will be held to fast-track the approval process. The TAPP has already been submitted to the Road Transport and Highways Division and will be forwarded to the Planning Commission and ERD.

The original 35 km Gabtoli–Narayanganj route, estimated to cost Tk60,837 crore, has now been revised to a 25 km route from Gabtoli to Demra, covering Mohammadpur, New Market, Lalbagh, Mitford, Dholaikhal, and a branch from Gulistan to Sadarghat. Narayanganj is expected to be served by another future line, MRT 7.

Though MRT Line 5 (Southern Route) was initially prioritized, the Planning Commission opted to move forward with MRT 2 instead, citing the greater population density and economic activity in Old Dhaka.

The final cost and World Bank loan amount will be determined after the feasibility and design phases are completed.

Original reporting: https://www.tbsnews.net/bangladesh/infrastructure/first-wb-fund-metro-line-connecting-old-dhaka-1206351
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