Govt optimistic about lining up jt venture investments

Nizam Ahmed The government expects to line up funds from alternative sources for the proposed multipurpose Padma Bridge project after the World Bank suspended funding for the project due to graft allegations, officials said on Tuesday. A number of international joint venture groups have expressed their willingness to invest in the mega project on build own operate and transfer (BOOT) basis, the officials added. Generally BOOT deals are offered for 15 to 25 years by the investors who get back the investment with profits. "A number of world famous infrastructure builders are in the process of forming joint venture groups to vie for a deal to build the proposed multipurpose bridge over the river Padma," a senior official of the communications ministry said requesting not to be named. Most of the firms in talks for joint ventures for the project could be Chinese, Malaysian, South Korean, Indian and Japanese, he said without giving further details. The joint venture groups would prefer BOOT deals for a longer period to ensure returns from their investment in the project through collection of tolls. An official of the Bangladesh Bridge Authority said there was no problem if joint-venture firms came up for investment plan and the government approved it. When contacted a senior official of the finance ministry said he won't talk to press on the issue as the mater is "very sensitive." "We can expect at least three potential joint venture groups to vie for the deal for building the 6.15-km-long mega bridge," the communications ministry official said. A Malaysian company has taken the lead to start talks for a joint venture with another foreign firm (not Bangladeshi) to undertake the mega project, the official said. Malaysia's special envoy Datuk Seri Samy Vellu told reporters in Kuala Lumpur on Tuesday on return from a trip to Bangladesh that he had talks with the company based in Kuala Lumpur. Mr. Samy Vellu, a former works minister who was appointed a special envoy to South Asian nations in January, said he took up the issue with the Malaysian company after Bangladesh Prime Minister Sheikh Hasina requested Malaysia to provide fund for the bridge. However he did not name the company. "We are at present studying the feasibility report of the project prepared by consultants appointed by Bangladesh government," Malaysian official Bernama news agency, quoted Datuk Samy Vellu, as saying. He said he had apprised Bangladesh prime minister that Malaysian experts would study the design and would come up for funding the bridge. The WB temporarily suspended a promised loan of $1.2 billion on October 10, on grounds of alleged corruption in the process of short-listing the contractors for construction of the $2.9 billion multipurpose mega bridge. Subsequently, the Asian Development Bank and Japan have also put on hold the release of their respective portion of funds committed for the Padma Bridge project. However the Islamic Development Bank (IDB) is yet to announce its decision about release of its committed fund for the project. Finance Minister Abul Maal Abdul Muhith said on Sunday that the government had alternative arrangements to implement the Padma Multi-purpose Bridge project.