Bridge Div surrenders fund worth Tk 13.12b
Wednesday, 11 January 2012
FHM Humayan Kabir
The Bridge Division has surrendered fund worth Tk 13.12 billion, equivalent to 60 per cent of its Tk 21.87 billion outlay in the current development budget to build the Padma Bridge, as different donors have suspended disbursement of the loans committed for the project, officials said Tuesday.
"We've mainly cut project aid requirement from our allocated external fund, as four donors did not release any money from their US$2.35 billion worth of commitment for the Padma Bridge project," a senior Bridge Division official told the FE.
Out of the total Tk 21.87 billion outlay for the project in the current Annual Development Programme (ADP), the Bridge Division has proposed to cut its allocated project aid by Tk 12.54 billion, 73 per cent down from its total Tk 17.07 billion aid outlay.
The official said since the World Bank and other co-financers have put on hold their credit disbursement, the Bridge Division has requested the Planning Commission to downsize the current year outlay from the ADP.
The Bridge Division has now sought a total of Tk 8.75 billion fund, down by Tk 13.12 billion from the total Tk 21.87 billion outlay in the ADP of the current fiscal (2011-12).
The project implementer has sought Tk 4.53 billion project aid against Tk 17.07 billion allocation in the current ADP.
The Planning Commission allocated Tk 17.07 billion fund from external resources and Tk 4.79 billion from the public exchequer in the current fiscal for constructing the 6.15-kilometres-long road-cum-railway bridge over the Padma River at Mawa-Jajira point.
The World Bank (WB) in last October suspended disbursement of its committed $1.20 billion fund due to alleged graft in the bidding process of the Padma Bridge project. Similarly, three other co-financers have also put on hold their financing for the mega project.
The WB confirmed $1.2 billion credit, the ADB $615 million, the Japan International Cooperation Agency nearly $400 million, and the IDB confirmed $140 million for the Padma Bridge project last year. However, these organisations are yet to start their disbursement.
Meanwhile, the government suspended the project work and assigned the Anti-Corruption Commission (ACC) to probe into the alleged graft.
The allegations have delayed the donors' financing and created an apprehension on implementation of the much-awaited Padma Bridge, which will connect the country's south-western regions with the capital.
A senior official of the Ministry of Communications said: "Soon after eliminating the stalemate on the way to foreign financing for the Padma Bridge, we will seek more project aid from the Planning Commission for building the bridge."
"We are hopeful of getting the pledged funds from the WB and three other co-financers for the project within the current calendar year," he added.
The Bridge Division has surrendered fund worth Tk 13.12 billion, equivalent to 60 per cent of its Tk 21.87 billion outlay in the current development budget to build the Padma Bridge, as different donors have suspended disbursement of the loans committed for the project, officials said Tuesday.
"We've mainly cut project aid requirement from our allocated external fund, as four donors did not release any money from their US$2.35 billion worth of commitment for the Padma Bridge project," a senior Bridge Division official told the FE.
Out of the total Tk 21.87 billion outlay for the project in the current Annual Development Programme (ADP), the Bridge Division has proposed to cut its allocated project aid by Tk 12.54 billion, 73 per cent down from its total Tk 17.07 billion aid outlay.
The official said since the World Bank and other co-financers have put on hold their credit disbursement, the Bridge Division has requested the Planning Commission to downsize the current year outlay from the ADP.
The Bridge Division has now sought a total of Tk 8.75 billion fund, down by Tk 13.12 billion from the total Tk 21.87 billion outlay in the ADP of the current fiscal (2011-12).
The project implementer has sought Tk 4.53 billion project aid against Tk 17.07 billion allocation in the current ADP.
The Planning Commission allocated Tk 17.07 billion fund from external resources and Tk 4.79 billion from the public exchequer in the current fiscal for constructing the 6.15-kilometres-long road-cum-railway bridge over the Padma River at Mawa-Jajira point.
The World Bank (WB) in last October suspended disbursement of its committed $1.20 billion fund due to alleged graft in the bidding process of the Padma Bridge project. Similarly, three other co-financers have also put on hold their financing for the mega project.
The WB confirmed $1.2 billion credit, the ADB $615 million, the Japan International Cooperation Agency nearly $400 million, and the IDB confirmed $140 million for the Padma Bridge project last year. However, these organisations are yet to start their disbursement.
Meanwhile, the government suspended the project work and assigned the Anti-Corruption Commission (ACC) to probe into the alleged graft.
The allegations have delayed the donors' financing and created an apprehension on implementation of the much-awaited Padma Bridge, which will connect the country's south-western regions with the capital.
A senior official of the Ministry of Communications said: "Soon after eliminating the stalemate on the way to foreign financing for the Padma Bridge, we will seek more project aid from the Planning Commission for building the bridge."
"We are hopeful of getting the pledged funds from the WB and three other co-financers for the project within the current calendar year," he added.