Dhaka, Tokyo to sign deal on Padma Bridge loan today
Wednesday, 18 May 2011
FHM Humayan Kabir
A deal on the much-talked about Japanese loan worth US$400 million for Padma Bridge construction will be signed today (Wednesday) as the Japan government yesterday approved the credit, official said. "The Japanese cabinet today morning approved the loan for Bangladesh. We will sign the deal tomorrow," secretary of the Economic Relations Division (ERD) M Musharraf Hossain Bhuiyan told the FE Tuesday. The Japanese Ambassador in Dhaka and the Secretary of the ERD will sign the credit deal Wednesday afternoon on behalf of their respective governments, he said. The confirmation about the $640 million loan by the Bangladesh's largest bilateral donor Japan for three schemes including Padma Bridge has been delayed because of the devastating tsunami and earthquake that had hit some parts of Japan in early March this year. After the disaster, Tokyo informed Dhaka that their assured loan package would be delayed as they were busy to recover from the losses caused by the disasters. A senior ERD official said, "Now everything is ready for signing the Japanese loan deal Wednesday in Dhaka." Under the loan package, Japan will provide $400 million credit for building Bangladesh's proposed largest bridge Padma and $240 million for smooth water supply in Khulna city and the country's small and medium enterprises development. "We had taken our preparation to sign the loan deal in March this year. But as Japan was hard hit by the tsunami, we were waiting for fresh schedule," the ERD official said. A Japanese mission in February finalised modalities of its offered $640 million credit for building the World's third biggest bridge over the Padma, and two other projects under the 32nd official development assistance (ODA) programme for Bangladesh. The Japanese credit will have to be repaid at 0.01 per cent interest rate in 40 years with 10 years' grace period. The country's largest 6.15-kilometre-long Padma Bridge will require $2.90 billion funds. The global lender World Bank, Asian Development Bank and Islamic Development Bank have also assured Dhaka of bankrolling the bridge. The Washington-based lender World Bank has already confirmed its $1.2 billion loan for the Bridge in April this year. ERD has also taken preparation to sign another aid deal with the Jeddah-based lender Islamic Development Bank (IDB) on May 24 in Dhaka on $140 million credit for constructing the Padma Bridge. "We are also trying to get a suitable date from the country's second largest multilateral donor ADB for signing deals to confirm $615 million loan," the ERD official said. Bangladesh government in 2008 had undertaken the road-cum-railway bridge scheme over the river Padma in Mawa-Janjira point at a cost of $1.46 billion. However, the cost has recently been increased to US$2.90 billion. The government has already invited pre-qualification bids from international contractors to build the proposed road-cum-rail bridge, designed to minimise economic imbalance between the impoverished southwestern region and the developed central Dhaka.
A deal on the much-talked about Japanese loan worth US$400 million for Padma Bridge construction will be signed today (Wednesday) as the Japan government yesterday approved the credit, official said. "The Japanese cabinet today morning approved the loan for Bangladesh. We will sign the deal tomorrow," secretary of the Economic Relations Division (ERD) M Musharraf Hossain Bhuiyan told the FE Tuesday. The Japanese Ambassador in Dhaka and the Secretary of the ERD will sign the credit deal Wednesday afternoon on behalf of their respective governments, he said. The confirmation about the $640 million loan by the Bangladesh's largest bilateral donor Japan for three schemes including Padma Bridge has been delayed because of the devastating tsunami and earthquake that had hit some parts of Japan in early March this year. After the disaster, Tokyo informed Dhaka that their assured loan package would be delayed as they were busy to recover from the losses caused by the disasters. A senior ERD official said, "Now everything is ready for signing the Japanese loan deal Wednesday in Dhaka." Under the loan package, Japan will provide $400 million credit for building Bangladesh's proposed largest bridge Padma and $240 million for smooth water supply in Khulna city and the country's small and medium enterprises development. "We had taken our preparation to sign the loan deal in March this year. But as Japan was hard hit by the tsunami, we were waiting for fresh schedule," the ERD official said. A Japanese mission in February finalised modalities of its offered $640 million credit for building the World's third biggest bridge over the Padma, and two other projects under the 32nd official development assistance (ODA) programme for Bangladesh. The Japanese credit will have to be repaid at 0.01 per cent interest rate in 40 years with 10 years' grace period. The country's largest 6.15-kilometre-long Padma Bridge will require $2.90 billion funds. The global lender World Bank, Asian Development Bank and Islamic Development Bank have also assured Dhaka of bankrolling the bridge. The Washington-based lender World Bank has already confirmed its $1.2 billion loan for the Bridge in April this year. ERD has also taken preparation to sign another aid deal with the Jeddah-based lender Islamic Development Bank (IDB) on May 24 in Dhaka on $140 million credit for constructing the Padma Bridge. "We are also trying to get a suitable date from the country's second largest multilateral donor ADB for signing deals to confirm $615 million loan," the ERD official said. Bangladesh government in 2008 had undertaken the road-cum-railway bridge scheme over the river Padma in Mawa-Janjira point at a cost of $1.46 billion. However, the cost has recently been increased to US$2.90 billion. The government has already invited pre-qualification bids from international contractors to build the proposed road-cum-rail bridge, designed to minimise economic imbalance between the impoverished southwestern region and the developed central Dhaka.