Dhaka - Authorities in Bangladesh have given the nod to launch a feasibility study for constructing a 60-kilometre subway system for Dhaka to ease the capital's nagging traffic congestion, officials said Tuesday.

The military-backed interim government, led by Fakhruddin Ahmed, on Monday asked an inter-ministry panel to launch the study by December, officials at the Ministry of Communications said.

"The council of advisers has conceptually approved the proposal of the Bangladesh Railway for establishing the subway system," communication adviser Ghulam Quader said, adding that the government hopes construction of the underground railway could commence late next year.

Dhaka, a crowded, rapidly growing city of 14 million people, is often called the basket case of Asia by Western transport experts in terms of its management of roads and its traffic system.

The government has tried a number of options to make the roads congestion-free, but they have proven a futile exercise in the absence of a coordinated effort, a top police officer said.

The government decided to launch the feasibility study on its own and plans to offer private firms the opportunity to come forward to implement the project on a build, operate, own and transfer basis.

Officials said they hope the bidding for the feasibility study would be opened in November and the work would begin in December.

"It would take six months to complete the study," a Communications Ministry official said.

Contech Ltd, a private construction company, proposed to initiate an estimated 900-million-dollar project to construct the underground railway. (dpa)