MoC now decides to seek Japanese loan

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FHM Humayan Kabir The Ministry of Communications (MoC) has at last moved back from its earlier position and decided to request Japan to finance the second Meghna Bridge on the Dhaka-Chittagong highway, officials said Monday. MoC officials said they have already sent a request to the Economic Relations Division (ERD) for confirming the Japanese assistance for the proposed 1.5 kilometres 2nd Meghna Bridge. "We have received the request from the communications ministry for the fund. We will now send it to the Japan government seeking necessary funds," an ERD official told the FE. Earlier, the MoC had decided to build a two-lane new bridge on the river Meghna by taking high interest-bearing loan from China, ignoring the Japanese soft loan offer. The Planning Commission (PC) and transport experts opposed the move of the MoC and asked it to conduct a comparative feasibility study between a two-lane and a four-lane bridge. They said that the two-lane bridge with hard-term loan would not be feasible as the government is upgrading the busy Dhaka-Chittagong highway into a four-lane one considering the growing traffic movement. The Roads and Highways Department (RHD) had sent a recast project proposal to the Planning Commission to build the 2nd Meghna Bridge beside the existing one at a cost of Tk 6.67 billion. Out of the Tk 6.67 billion cost, the RHD was to borrow Tk 6.40 billion assistance from the Chinese government. As per the requirement of the MoC, the ERD had been discussing with China for getting its financial support. Since the existing Meghna Bridge has developed faults and vehicular movement through it could be suspended anytime, the MoC should decide to construct a four-lane bridge on the highway connecting the capital with the port city, a PC official said. Earlier, the Japanese donor - Japan International Cooperation Agency (JICA) - made a proposal to the government to provide financial support for building the second Meghna Bridge and repair the existing bridge. But the RHD was apparently determined to borrow from China overlooking the Japanese offer though its terms and conditions were harder. The Japanese loan bears only 0.01 per cent interest rate, with 40 years maturity. But China will charge more than 2.0 per cent interest and allow shorter repayment period. Besides, China will also appoint their company to construct the bridge if the government decides to borrow money from it. "Having received the request from the MoC, we have sought a project proposal of the second Meghna Bridge from the ministry. After getting the proposal we will send it to JICA requesting necessary support," the ERD official said.