ADB approves $615m for Padma Bridge
Friday, 26 November 2010
The Asian Development Bank (ADB) has approved US$615 million for constructing the Padma Multipurpose Bridge, reports BSS.
The ADB approved the loan at a board meeting Thursday at its Manila headquarters, according to a press release of the bank.
ADB is providing over 21 per cent of the total cost of nearly US $2.92 billion for the bridge project. Besides ADB, the World Bank (WB), Japan International Cooperation Agency (JICA) and Islamic Development Bank (IDB) are also contributing as cofinanciers.
The ADB's assistance will be extended through two loans. The first amount of $539 million from ADB's ordinary capital resources has a 27-year tenor, with a 7-year grace period, and an annual interest rate determined in accordance with ADB's LIBOR- based lending facility.
The second loan of $76 million equivalent from ADB's concessional Asian Development Fund has a 32-year tenor, with an 8-year grace period carrying an annual interest of 1 percent, which rises to 1.5 percent for the balance of the term.
"By providing a vital infrastructure link between the capital city Dhaka and the less developed southwest region, the Padma Bridge will give the national economy a major boost," said Sultan H. Rahman, Director General of ADB's South Asia Department.
Meanwhile, the WB, one of the major development partners in financing the Padma Multipurpose Bridge, is confident about timely completion of the bridge project.
The WB, in a statement, said Thursday that the preparation for the bridge is moving ahead in full swing and the government along with the four development partners is working closely to complete the construction in time.
The government has already finalised the design of the main bridge. The pre-qualification (PQ) of prospective contractors is also underway, the WB said.
The ADB approved the loan at a board meeting Thursday at its Manila headquarters, according to a press release of the bank.
ADB is providing over 21 per cent of the total cost of nearly US $2.92 billion for the bridge project. Besides ADB, the World Bank (WB), Japan International Cooperation Agency (JICA) and Islamic Development Bank (IDB) are also contributing as cofinanciers.
The ADB's assistance will be extended through two loans. The first amount of $539 million from ADB's ordinary capital resources has a 27-year tenor, with a 7-year grace period, and an annual interest rate determined in accordance with ADB's LIBOR- based lending facility.
The second loan of $76 million equivalent from ADB's concessional Asian Development Fund has a 32-year tenor, with an 8-year grace period carrying an annual interest of 1 percent, which rises to 1.5 percent for the balance of the term.
"By providing a vital infrastructure link between the capital city Dhaka and the less developed southwest region, the Padma Bridge will give the national economy a major boost," said Sultan H. Rahman, Director General of ADB's South Asia Department.
Meanwhile, the WB, one of the major development partners in financing the Padma Multipurpose Bridge, is confident about timely completion of the bridge project.
The WB, in a statement, said Thursday that the preparation for the bridge is moving ahead in full swing and the government along with the four development partners is working closely to complete the construction in time.
The government has already finalised the design of the main bridge. The pre-qualification (PQ) of prospective contractors is also underway, the WB said.