Govt seeks $500m extra as cost balloons
Sunday, 28 November 2010
Munima Sultana
The government is seeking around US$500 million dollar in additional loans from co-financiers of the country's mega Padma bridge project, amid escalating costs of the infrastructure facility.
The cost of the Padma bridge project has swelled to a staggering $2.9 billion, up by $1.1 billion from the initial costs estimated during its feasibility study.
Officials said the World Bank (WB) has already committed to lending out extra $300 million for the bridge project, bringing its total commitment to $1.5 billion.
The bank, also the coordinating agency of the multi-donor Padma bridge project, confirmed its additional commitment in a meeting with the Economic Relations Division on October 30, the officials said.
In addition to the WB, they said the government has intensified efforts to mobilise $150 million from Japan's development lender Japan International Cooperation Agency (JICA) and $115 million from the Asian Development Bank (ADB) to make up extra costs required for the 6.15-kilometre-long bridge.
"So far, Japan has indicated to provide additional $100 million, making its total commitment to $400 million," said an official.
He said Prime Minister Sheikh Hasina's visit to Japan, which began today (Saturday), could deliver positive results for the additional support.
The Manila lender, from which $115 million additional fund was sought, has already approved $615 million for the project in its board meeting Thursday.
Officials said no additional money was sought from the Islamic Development Bank, which has already approved $140 million for the construction of the approach roads at Mawa-Janjira points.
The government is seeking around US$500 million dollar in additional loans from co-financiers of the country's mega Padma bridge project, amid escalating costs of the infrastructure facility.
The cost of the Padma bridge project has swelled to a staggering $2.9 billion, up by $1.1 billion from the initial costs estimated during its feasibility study.
Officials said the World Bank (WB) has already committed to lending out extra $300 million for the bridge project, bringing its total commitment to $1.5 billion.
The bank, also the coordinating agency of the multi-donor Padma bridge project, confirmed its additional commitment in a meeting with the Economic Relations Division on October 30, the officials said.
In addition to the WB, they said the government has intensified efforts to mobilise $150 million from Japan's development lender Japan International Cooperation Agency (JICA) and $115 million from the Asian Development Bank (ADB) to make up extra costs required for the 6.15-kilometre-long bridge.
"So far, Japan has indicated to provide additional $100 million, making its total commitment to $400 million," said an official.
He said Prime Minister Sheikh Hasina's visit to Japan, which began today (Saturday), could deliver positive results for the additional support.
The Manila lender, from which $115 million additional fund was sought, has already approved $615 million for the project in its board meeting Thursday.
Officials said no additional money was sought from the Islamic Development Bank, which has already approved $140 million for the construction of the approach roads at Mawa-Janjira points.