Dhaka, July 8 -- A fresh dilemma has emerged in Dhaka's ambitious metro-rail expansion as the state-owned operator faces exorbitant bids from a narrow pool of Japanese firms.

Despite interest from companies worldwide, restrictive Japan-specific tender conditions have effectively sidelined all but a few players, resulting in a staggering 162-percent cost overrun in one major contract package, sources said.

The lowest bid for contract package (CP) 6 of MRT Line 5 North came in at over Tk 155 billion, dwarfing earlier cost estimates and putting the Dhaka Mass Transit Company Limited (DMTCL) in a bind with no room for negotiation, due to the Japan International Cooperation Agency's (JICA) rigid financing rules.

Procurement insiders and eng...