Dhaka, June 4 -- A Japanese company has withdrawn from the bidding for one of the most controversial contract packages (CP) on MRT Line-1 despite being the lowest bidder, citing prolonged delays in implementing Bangladesh's first underground metro-rail project.

Sources say Kajima Corporation, whose bid was based on cost estimates prepared nearly two years ago, has informed the government that carrying out the works under current conditions would be difficult due to the volatile global situation and the impact of conflicts in the Middle East.

"The company said executing the work at its proposed cost of Tk 50.55 billion was no longer feasible because more than two years had passed since the bid was submitted," says an official familiar wi...