Govt to choose 'lead donor' agency today
FE Report | Sunday, 31 August 2008
The caretaker government will choose today (Sunday) a 'lead donor' agency from among the ADB and the World Bank (WB), which is crucial for timely construction of Padma Bridge, ministry officials said.
Finance and planning adviser Mirza Azizul Islam and communication adviser Ghulam Quader are scheduled to meet at the planning commission on the day to settle the issue, said a senior communication ministry official.
Earlier, the communication ministry, which is the main implementing authority to construct the US$ 1.8 billion multipurpose bridge over the river Padma, failed to select a 'lead donor' agency.
The ministry urged its adviser to consult with the finance and planning adviser to settle the issue as both World Bank and Asian Development Bank has expressed willingness to be the lead donor agency.
The officials said selection of a lead donor agency is important as it will be responsible to maintain role of coordinator between the government and the donor agencies.
An external resource division (ERD) official said the Manila based ADB is in most advantageous position for leadership as it will provide the highest $350 million credit among the donors although it will charge 3.49 per cent interest rate.
The Washington based WB will lend $300 million at 0.01 per cent interest rate and 0.75 per cent service charge.
"But the WB is yet to confirm when the lending programme will start. But the ADB has already confirmed its lending programme that will start from 2010," said the official.
He said timely start of construction of the Padma Bridge should be more important to the caretaker government than the issue of higher lending rate.
The construction work of the 6.01 km bridge at the Mawa-Jajira point has already been delayed by two years and deferred until 2010.
Apart from ADB and WB, Islamic Development Bank will lend $300 million and Japan Bank of International Corporation (JBIC) $200 million.
The multilateral donor agencies, so far, assured credit worth $1.15 billion that left the government with the responsibility to provide the rest $650 million.
The ERD official said the meeting between two advisers will review various options to raise local fund.
The communication ministry has decided securitising the Jamuna Multipurpose Bridge and converting the Padma Bridge into a company to facilitate offloading a part of its shares.
Besides, the communication ministry is also mulling the option of imposing levies and taking loan from the local commercial banks, said the official.
Finance and planning adviser Mirza Azizul Islam and communication adviser Ghulam Quader are scheduled to meet at the planning commission on the day to settle the issue, said a senior communication ministry official.
Earlier, the communication ministry, which is the main implementing authority to construct the US$ 1.8 billion multipurpose bridge over the river Padma, failed to select a 'lead donor' agency.
The ministry urged its adviser to consult with the finance and planning adviser to settle the issue as both World Bank and Asian Development Bank has expressed willingness to be the lead donor agency.
The officials said selection of a lead donor agency is important as it will be responsible to maintain role of coordinator between the government and the donor agencies.
An external resource division (ERD) official said the Manila based ADB is in most advantageous position for leadership as it will provide the highest $350 million credit among the donors although it will charge 3.49 per cent interest rate.
The Washington based WB will lend $300 million at 0.01 per cent interest rate and 0.75 per cent service charge.
"But the WB is yet to confirm when the lending programme will start. But the ADB has already confirmed its lending programme that will start from 2010," said the official.
He said timely start of construction of the Padma Bridge should be more important to the caretaker government than the issue of higher lending rate.
The construction work of the 6.01 km bridge at the Mawa-Jajira point has already been delayed by two years and deferred until 2010.
Apart from ADB and WB, Islamic Development Bank will lend $300 million and Japan Bank of International Corporation (JBIC) $200 million.
The multilateral donor agencies, so far, assured credit worth $1.15 billion that left the government with the responsibility to provide the rest $650 million.
The ERD official said the meeting between two advisers will review various options to raise local fund.
The communication ministry has decided securitising the Jamuna Multipurpose Bridge and converting the Padma Bridge into a company to facilitate offloading a part of its shares.
Besides, the communication ministry is also mulling the option of imposing levies and taking loan from the local commercial banks, said the official.