Govt to seek extended support from IDB for Padma bridge
Wednesday, 3 June 2009
FE Report
The government will seek extended support for construction of Padma bridge from the Islamic Development Bank (IDB) at its annual meeting at Ashgabad in Turkmenistan, officials said Tuesday.
Finance minister AMA Muhith, who is now in Ashgabad to attend the IDB's meeting, will appeal for the increased assistance from the Jeddah-based lending agency as the Padma Bridge project will require more than US$1.8 billion worth of fund as estimated initially, ministry officials said.
"IDB gave us an indication of $300 million fund. But as the project will need over $1.8 billion the finance minister will seek more money from the Jeddah-based donor agency," a finance ministry official told the FE. The 34th annual meeting of the board of governors of the IDB is being held in Ashgabat, Turkmenistan from June 2 to June 3. A three-member team, led by finance minister AMA Muhith, left Dhaka for Ashgabad on May 31 to attend the annual meeting of the IDB.
The government is committed to building the country's largest bridge on mighty river Padma by FY 2015 to connect the country's southwestern region with capital Dhaka.
The proposed 5.558 kilometre long four-lane bridge with a provision of a railway track at Mawa-Janjira point on the river Padma will be constructed by the fiscal 2014-2015.
The initial cost estimation for the project was $1.46 billion (Tk 101.6175 billion), which was later escalated to $1.8 billion due to price rise of the construction materials.
The government has received assurance from three big donors -- Japan, Word Bank and Asian Development Bank (ADB) -- for funds for construction of the bridge.
The officials said the three leading donors are expected to provide nearly $950 million.
Sources in the finance ministry hinted that finance minister Mr Muhith would also have talks on sideline with some other countries, including the United Arab Emirates (UAE), Saudi Arabia, Turkmenistan and Qatar in Ashgabad. Mr Muhith might also seek financial support from those gulf countries to construct the Padma Bridge and finance other development projects in the country.
The government will seek extended support for construction of Padma bridge from the Islamic Development Bank (IDB) at its annual meeting at Ashgabad in Turkmenistan, officials said Tuesday.
Finance minister AMA Muhith, who is now in Ashgabad to attend the IDB's meeting, will appeal for the increased assistance from the Jeddah-based lending agency as the Padma Bridge project will require more than US$1.8 billion worth of fund as estimated initially, ministry officials said.
"IDB gave us an indication of $300 million fund. But as the project will need over $1.8 billion the finance minister will seek more money from the Jeddah-based donor agency," a finance ministry official told the FE. The 34th annual meeting of the board of governors of the IDB is being held in Ashgabat, Turkmenistan from June 2 to June 3. A three-member team, led by finance minister AMA Muhith, left Dhaka for Ashgabad on May 31 to attend the annual meeting of the IDB.
The government is committed to building the country's largest bridge on mighty river Padma by FY 2015 to connect the country's southwestern region with capital Dhaka.
The proposed 5.558 kilometre long four-lane bridge with a provision of a railway track at Mawa-Janjira point on the river Padma will be constructed by the fiscal 2014-2015.
The initial cost estimation for the project was $1.46 billion (Tk 101.6175 billion), which was later escalated to $1.8 billion due to price rise of the construction materials.
The government has received assurance from three big donors -- Japan, Word Bank and Asian Development Bank (ADB) -- for funds for construction of the bridge.
The officials said the three leading donors are expected to provide nearly $950 million.
Sources in the finance ministry hinted that finance minister Mr Muhith would also have talks on sideline with some other countries, including the United Arab Emirates (UAE), Saudi Arabia, Turkmenistan and Qatar in Ashgabad. Mr Muhith might also seek financial support from those gulf countries to construct the Padma Bridge and finance other development projects in the country.