$600m additional fund from donors sought
Tuesday, 5 October 2010
FHM Humayan Kabir
The government has sought US$600 million in additional fund from three major donors to construct the Padma Bridge as its cost has swelled to $2.9 billion from earlier estimate of $2.4 billion, officials said Monday.
"We have sent request to World Bank, Asian Development Bank and Japan for raising the level of their financial support," a senior Economic Relations Division (ERD) official told the FE.
The communications ministry officials said the cost has been escalated due to higher financial involvement in river training and price hike of construction materials in the international markets.
The ERD official said the government has sought $300 million from the World Bank in addition to its assured $1.20 billion and $135 million from the Manila-based ADB in addition to its pledged $615 million for building the 6.15 kilometre bridge.
"We have also requested the Japanese government to provide $150 million in excess of $300 million pledged earlier," he said.
Four donors including WB, ADB, Japan and Islamic Development Bank (IDB) have already assured to provide4 $2.25 billion for construction of the bridge on the river Padma at Mawa-Janjira point.
A New Zealand-based consulting firm Maunsell-AECOM has designed the proposed Padma bridge project in late August last year estimating the cost at US$2.4 billion for the 6.15 kilometre bridge.
Earlier in 2007, the government's highest project approval body ECNEC approved the project at a cost of $1.46 billion.
Four major donors in an assessment in late 2009 said the cost of the Padma Bridge scheme could swell to $2.7 billion from existing $2.4 billion due to price escalation and interest payments during its implementation period.
The present government has committed to complete the steel-truss railway-cum-road bridge in the Mawa-Janjira points on the mighty river Padma by 2013, the last year of its tenure in office.
A World Bank assessment has said the proposed Padma Bridge would boost the country's gross domestic product by 1.2 per cent, revive the fortune of Mongla Port and cut poverty in the poorest south-west region.
The government has sought US$600 million in additional fund from three major donors to construct the Padma Bridge as its cost has swelled to $2.9 billion from earlier estimate of $2.4 billion, officials said Monday.
"We have sent request to World Bank, Asian Development Bank and Japan for raising the level of their financial support," a senior Economic Relations Division (ERD) official told the FE.
The communications ministry officials said the cost has been escalated due to higher financial involvement in river training and price hike of construction materials in the international markets.
The ERD official said the government has sought $300 million from the World Bank in addition to its assured $1.20 billion and $135 million from the Manila-based ADB in addition to its pledged $615 million for building the 6.15 kilometre bridge.
"We have also requested the Japanese government to provide $150 million in excess of $300 million pledged earlier," he said.
Four donors including WB, ADB, Japan and Islamic Development Bank (IDB) have already assured to provide4 $2.25 billion for construction of the bridge on the river Padma at Mawa-Janjira point.
A New Zealand-based consulting firm Maunsell-AECOM has designed the proposed Padma bridge project in late August last year estimating the cost at US$2.4 billion for the 6.15 kilometre bridge.
Earlier in 2007, the government's highest project approval body ECNEC approved the project at a cost of $1.46 billion.
Four major donors in an assessment in late 2009 said the cost of the Padma Bridge scheme could swell to $2.7 billion from existing $2.4 billion due to price escalation and interest payments during its implementation period.
The present government has committed to complete the steel-truss railway-cum-road bridge in the Mawa-Janjira points on the mighty river Padma by 2013, the last year of its tenure in office.
A World Bank assessment has said the proposed Padma Bridge would boost the country's gross domestic product by 1.2 per cent, revive the fortune of Mongla Port and cut poverty in the poorest south-west region.