Ministry selects lead donor agency for Padma Bridge today
Shakhawat Hossain | Thursday, 31 July 2008
Communication ministry sits in a meeting today (Thursday) to select a lead agency among two major donors for the construction of Padma Multipurpose Bridge, officials said Wednesday.
The World Bank (WB) and the Asian Development Bank (ADB) have long been showing keen interest to become the lead agency, said a senior communication ministry official.
"It has become necessary for the newly established bridge division under the ministry to settle the issue," he said.
Communication adviser Ghulam Quader will chair the meeting that will review proposals by the donors on constriction of the bridge over the river Padma.
The Manila-based ADB has long been dubbed as the lead donor agency for its higher financial involvement. But the Washington-based WB might rattle the equation with its lower interest rate.
"Amount of lending by the ADB will be higher, but the interest rate of the WB will be lower," said the official.
The ADB interest rate will almost be double of that of WB.
Besides, the World Bank will weigh high because of its past experience and role as the lead donor agency for the constriction of the country's longest Januma Multi-purpose Bridge.
The ADB has also plus points because of its role in preparation of detailed design of the 6.01 km bridge to be built at the Mawa-Jajira point of the river Padma at a cost of US$1.8 billion, said the official.
The ADB that has assured to offer the highest $350 million credit will appoint a firm by the next month to complete the design work by the next couple years.
The country is expected to start the constriction work of the bridge in 2010.
The WB and the Japan Bank of International Cooperation (JBIC) have each offered $300 million while the Islamic Development Bank (IDB) has shown interest to give similar amount of loan.
The government is to bear one third of the project cost.
The 25-metre wide, four-lane Padma Bridge with a provision of railway tracks is expected to take six years and contribute to the national economy through boosting the gross domestic product (GDP) by 1.2 per cent.
The bridge division will acquire around 918 hectares of land in Munshiganj, Madaripur and Shariatpur this year. It requires Tk 3.4 billion for the purpose.
According to a survey by the Japan International Cooperation Agency (JICA), nearly 30,000 people will lose their lands due to land acquisition for construction of the bridge.
The World Bank (WB) and the Asian Development Bank (ADB) have long been showing keen interest to become the lead agency, said a senior communication ministry official.
"It has become necessary for the newly established bridge division under the ministry to settle the issue," he said.
Communication adviser Ghulam Quader will chair the meeting that will review proposals by the donors on constriction of the bridge over the river Padma.
The Manila-based ADB has long been dubbed as the lead donor agency for its higher financial involvement. But the Washington-based WB might rattle the equation with its lower interest rate.
"Amount of lending by the ADB will be higher, but the interest rate of the WB will be lower," said the official.
The ADB interest rate will almost be double of that of WB.
Besides, the World Bank will weigh high because of its past experience and role as the lead donor agency for the constriction of the country's longest Januma Multi-purpose Bridge.
The ADB has also plus points because of its role in preparation of detailed design of the 6.01 km bridge to be built at the Mawa-Jajira point of the river Padma at a cost of US$1.8 billion, said the official.
The ADB that has assured to offer the highest $350 million credit will appoint a firm by the next month to complete the design work by the next couple years.
The country is expected to start the constriction work of the bridge in 2010.
The WB and the Japan Bank of International Cooperation (JBIC) have each offered $300 million while the Islamic Development Bank (IDB) has shown interest to give similar amount of loan.
The government is to bear one third of the project cost.
The 25-metre wide, four-lane Padma Bridge with a provision of railway tracks is expected to take six years and contribute to the national economy through boosting the gross domestic product (GDP) by 1.2 per cent.
The bridge division will acquire around 918 hectares of land in Munshiganj, Madaripur and Shariatpur this year. It requires Tk 3.4 billion for the purpose.
According to a survey by the Japan International Cooperation Agency (JICA), nearly 30,000 people will lose their lands due to land acquisition for construction of the bridge.