ADB conditions for funding Padma Bridge

FE Team | Published: July 18, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Shakhawat Hossain
The Asian Development Bank (ADB) will select consultants as part of its conditions attached to funding worth US$ 300 million for construction of the Padma Bridge, official sources said.
Among the other conditions, the Manila-based lending agency has sought assurance from the government on counterpart funding in time and restructuring of Jamuna Multipurpose Bridge Authority as a separate division under a full-fledge secretary.
It also wants the government to follow the applicable laws and ADB's policies to deal with the land acquisition and resettlement plan, sources said.
The conditions, placed by the ADB fact-finding mission during its visit in the capital last month, have already been agreed by the Ministry of Communication (MoC), said a senior ministry official.
"In addition to the standard assurances, the MoC has agreed to the conditions following a positive signal by the higher authority, said the official adding that the assurance will be incorporated in the legal documents.
The official, however, admitted that the MoF had to provide such assurances to the donor agencies while reaching agreement with them on the construction of the Jamuna Multipurpose Bridge in late 1990s.
The ADB that also wants the government to develop a technically and financially sustainable operation and maintenance scheme for the proposed Padma Bridge is scheduled to hold management review meeting on the project July 20.
According to the aide memoire, the ADP will complete staff review meeting on the project next month, loan negotiation in September and the board consideration in November next.
In the meantime, the MoC has suggested the Economic Relations Division (ERD) to obtain the financial commitment of the lending agencies on construction of the proposed Padma Bridge in black and white, source said.
The ADB and the World Bank have only agreed to lend $ 300 million each for the construction of the Padma Bridge in fiscal 2008-09.
Sources attributed the absence of firm aid commitment from the willing lenders to the MoC problem in getting approval of the concerned body and starting land acquisition.
Apart from the two multilateral donors, the Japan Bank of International Cooperation (JBIC) has also showed interest to invest worth more than Tk 90 billion in the project.
The government has to bear one third of the total project cost.
It is likely to involve private parties and other lending agencies to construct the proposed bridge that will be longer than the existing JMB.
Site selection at the Mawa-Jajira to build the proposed 6.01 kilometre bridge was approved by the immediate past political government.
The construction of the 25-metre wide, four-lane Padma Bridge with a provision of railway tracks is expected to take six years.
The mega bridge project that will connect all the major divisions and cities is expected to contribute to the national economy through boosting the gross domestic product (GDP) by 1.2 per cent.
However, nearly 30,000 people will lose their lands due to acquisition for construction of the bridge, according to a survey by the Japan International Cooperation Agency (JICA).