Dhaka, March 8 -- The government is set to hold a crucial meeting with Japanese development partner to try to resolve a long-running dispute that has stalled work on Bangladesh's first underground metro rail line.

Officials hope the talks will clear a path for construction of the MRT-1 line between Airport and Kamalapur after years of delays.

The discussions come amid a deep disagreement over unusually high bidding prices for key construction packages, with the government seeking to cancel and re-tender some contracts while the Japanese lender warns that doing so could breach loan conditions and cause further delays.

The government will sit with Japan International Cooperation Agency (JICA) on Tuesday to resolve obstacles to the projec...