ADB is lead donor agency for Padma Bridge construction

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FE Report brThe Asian Development Bank (ADB) has been selected the lead donor agency for the construction of the Padma Multipurpose Bridge, ministry officials said Saturday.brThe Manila-based multilateral lending agency was selected last week at a meeting between finance and planning adviser Mirza Azizul Islam and communication adviser Ghulam Quader.brADB deputy country director Nurul Huda said the ADB has not yet been informed officially about the selection of his organisation as the lead donor agency to construct the bridge at an estimated cost of US$1.8 billion.brBut, we know it is crucial and a matter of pride, Mr. Huda said.Washington-based World Bank, which was the lead donor agency for construction of the 4.8 km Jamuna Multi Purpose bridge that cost $962, also wanted a similar role for the Padma bridge.brThe selection of ADB has surprised many as the donor agency took almost eight months to select an international firm to complete a detailed design of the 6.1 km long bride.brThere has been a delay in selection of a firm to complete the design, said Mr. Huda.brHe said There are lots of reasons behind the delay, which may happen in respect to a mega project like Padma Multipurpose Bridge.brYou have to be very accurate in every step because of lot of technicalities, he added. brADB has finally completed the selection of a firm, he said adding the bridge division under the communication ministry is now negotiating with the firm before entering into a final contract, said Mr Huda.brThe firm will complete the detailed design of the bridge over the next 18 months. brMr Huda said his organisation does not want to look back, but to move forward to timely construction of the bridge over the mighty river Padma.brAs a lead donor agency, he said, ADB will have to play the role of coordinator between the government and the multiletral donor agencies and it will be responsible for timely disbursement of donors' credit. brAn economic relation division (ERD) official said ADB has been selected as the lead agency for its commitment of highest $350 million credit to the country for the construction of the bridge.brThe caretaker government has selected the ADB although it will charge 3.49 per cent interest rate for the loan, the official said.brThe WB will lend $300 million at 0.01 per cent interest rate and 0.75 per cent service charge. The WB is yet to confirm starting period of its lending programme.brBut the ADB has already confirmed its lending programme to start from 2010, said the official.brApart from the ADB and the WB, Islamic Development Bank (IDB) will lend $300 million and Japan Bank of International Corporation (JBIC) $200 million.brThe country will securitise the Jamuna Multipurpose Bridge and transform the Padma Bridge into a company through offloading some shares to raise its fund worth $650 million from the local sources.brAs for other local sources, it is considering imposing levy, diverting fund from the annual development programme and borrowing from the local sources as the other local sources for financing the bridge costs.brThe 25-metre wide, four-lane Padma Bridge with a provision of railway tracks is expected to take six years and contribute to the national economy through boosting the gross domestic product (GDP) by 1.2 per cent.