Padma Bridge to boost regional connectivity
Sunday, 1 May 2011
Shahiduzzaman Khan
The government signed a hefty US$ 1.2 billion loan deal with the World Bank on constructing the Padma Bridge last week amid much enthusiasm. The largest ever loan agreement for the country and the first loan agreement under the $ 2.9 billion Padma multipurpose bridge project constitutes the ambitious project's highest part of expenditure that awaits implementation. The Padma Bridge, the world's third largest, will be constructed at Mawa and Jajira points across the river connecting nearly 30 million people in the country's southwest zone with the rest of the country. The main bridge structure would have a dual carriageway -- road traffic on the upper and rail on the lower level -- and have also provisions for future installation of a broad gauge rail-line as well as other facilities including gas, and telecommunication lines. It is expected to increase connectivity with other countries and establish missing links among the longest corridor under the Asian Highway network connecting Tokyo to Istanbul. Trade to and from Nepal would also directly benefit from the Bridge. World Bank managing director Ngozi Okonjo-Iweala, who was present at the venue of the signing ceremony, said the World Bank will not compromise on quality of the Padma Bridge. She reiterated zero corruption in implementing the 6.15-kilometre bridge. The World Bank has one very important condition, which is to have the bridge keep the highest standard of quality considering its expected longevity for 100 years. The loan agreement on behalf of International Development Association (IDA) credit allows a 40-year maturity with a 10-year grace period and 0.75 per cent interest. The multilateral lender is laying maximum emphasis on procurement, corruption-free work and transparency in implementing the Padma bridge project. Furthermore, the Padma Multipurpose Bridge Project will adhere fully to Bangladesh's 'Right to Information Act' and will include information sharing through the project website, social media, newsletters, and broadcasts on radio and television. Accountability will also be strengthened through third party monitoring by an independent panel of experts, community-based 'accountability meetings' to review social and resettlement action plans, and the appointment of an independent project integrity advisor reporting directly to the prime minister. Finance minister AMA Muhith, who was the guest of honour at the signing ceremony, said the government has taken up the responsibility to construct the multi-purpose bridge project maintaining quality and keeping it free from graft hoping to start the proposed bridge's work in October next by employing contractors. The Padma Bridge project is a big one and it is possible to be completed before the end of the present government's tenure, he told the media after the loan agreement signing. The government in order to ensure corruption-free implementation of the bridge project has already constituted a high-profile committee under the Prime Minister's Office and appointed the World Bank the coordinating agency for overseeing various works including tender, state of the art technology use and fair agreements. The government has also appointed Dr. Mashiur Rahman, adviser to the Prime Minister, 'Integrity Adviser' for overseeing the multi-billion-dollar project. Mr. Rahman would oversee the construction of the country's largest bridge across the Padma to check on possible graft and shoddy works and report to the Prime Minister directly on the works' implementation status. During negotiations with the government in January this year, the Washington-based lender asked the government to appoint an independent person as the 'Integrity Adviser' to ensure transparency and accountability of the multi-billion-dollar scheme. Indeed, the Padma multi-purpose bridge is considered not only an extremely important project for the country; it is also the World Bank's largest financial assistance to Bangladesh and the highest IDA credit. The World Bank's centre-point is to support the country in accelerating the economic growth of the southwest region and its potentiality to be the part of regional connectivity. Through retroactive financing, the World Bank has already financed $60 million for environmental and social actions to ensure that the lives of families in the construction zone are better. The development of resettlement sites is underway to protect the land, homes, livelihoods and community assets of local residents. The bridge is expected to reap far reaching economic and social benefits, including faster growth, new jobs, enhanced connectivity and trade within the country and in the broader region, and improved protection against river bank erosion and floods. Both the government and the World Bank have begun formulating a comprehensive development plan for the southwest region in order to maximise the benefits from the bridge. Additionally, the bridge will enhance regional trade and collaboration along the Asian highway No-1 and the Trans-Asian Railway Network systems. It will also connect the two major sea ports in Bangladesh and the river training work will help control river erosion and flooding locally which is a major cause of landlessness and extreme poverty in that area. Construction work of the Padma Bridge will begin at the end of this year if the World Bank gives its due concurrence and other formalities are completed timely. At least three years is needed to complete the bridge which means the Awami League government's dream to open it within its tenure may not materialise, according to a government official. In a further development, the government has decided to construct a second bridge over the Padma river in Paturia at an estimated cost of $1.9 billion with private initiative and without foreign assistance. The cabinet committee on economic affairs at a recent meeting approved in principle the proposal made by the communications ministry for constructing the bridge. The second bridge project would be implemented with private financing. The communications ministry is scheduled to take necessary steps for construction of the bridge soon. The second Padma Bridge would not be a multi-purpose one. The communications ministry would decide about when and how the tender would be floated. The Prime Minister has directed quick implementation of the project, according to reports. The communications ministry sought approval from the cabinet committee to start tender process for appointment of investors to construct the bridge on Build-Own-Transfer (BOT) or public-private partnership (PPP) basis. The ministry also wanted waiver from the obligations of following Bangladesh Private Sector Infrastructure Guidelines. If the government is to depend on development partners for building the bridge, it would have taken much more time. So the government opted for private initiative. Besides, the estimated cost for construction of ongoing first Padma Bridge at Mawa point is $2.4 billion, of which donors made commitment for providing $2.21 billion as assistance. Bangladesh Bridge Authority's (BBA) capacity building by filling up its substantial manpower gap has been caught in bureaucratic tangle and the authority's inability to hire people from the market is likely to make the implementation of its proposal mega projects difficult. The government must take pragmatic step soon to hire skilled and efficient people for the Padma bridge project for its proper implementation. szkhan@dhaka.net
The government signed a hefty US$ 1.2 billion loan deal with the World Bank on constructing the Padma Bridge last week amid much enthusiasm. The largest ever loan agreement for the country and the first loan agreement under the $ 2.9 billion Padma multipurpose bridge project constitutes the ambitious project's highest part of expenditure that awaits implementation. The Padma Bridge, the world's third largest, will be constructed at Mawa and Jajira points across the river connecting nearly 30 million people in the country's southwest zone with the rest of the country. The main bridge structure would have a dual carriageway -- road traffic on the upper and rail on the lower level -- and have also provisions for future installation of a broad gauge rail-line as well as other facilities including gas, and telecommunication lines. It is expected to increase connectivity with other countries and establish missing links among the longest corridor under the Asian Highway network connecting Tokyo to Istanbul. Trade to and from Nepal would also directly benefit from the Bridge. World Bank managing director Ngozi Okonjo-Iweala, who was present at the venue of the signing ceremony, said the World Bank will not compromise on quality of the Padma Bridge. She reiterated zero corruption in implementing the 6.15-kilometre bridge. The World Bank has one very important condition, which is to have the bridge keep the highest standard of quality considering its expected longevity for 100 years. The loan agreement on behalf of International Development Association (IDA) credit allows a 40-year maturity with a 10-year grace period and 0.75 per cent interest. The multilateral lender is laying maximum emphasis on procurement, corruption-free work and transparency in implementing the Padma bridge project. Furthermore, the Padma Multipurpose Bridge Project will adhere fully to Bangladesh's 'Right to Information Act' and will include information sharing through the project website, social media, newsletters, and broadcasts on radio and television. Accountability will also be strengthened through third party monitoring by an independent panel of experts, community-based 'accountability meetings' to review social and resettlement action plans, and the appointment of an independent project integrity advisor reporting directly to the prime minister. Finance minister AMA Muhith, who was the guest of honour at the signing ceremony, said the government has taken up the responsibility to construct the multi-purpose bridge project maintaining quality and keeping it free from graft hoping to start the proposed bridge's work in October next by employing contractors. The Padma Bridge project is a big one and it is possible to be completed before the end of the present government's tenure, he told the media after the loan agreement signing. The government in order to ensure corruption-free implementation of the bridge project has already constituted a high-profile committee under the Prime Minister's Office and appointed the World Bank the coordinating agency for overseeing various works including tender, state of the art technology use and fair agreements. The government has also appointed Dr. Mashiur Rahman, adviser to the Prime Minister, 'Integrity Adviser' for overseeing the multi-billion-dollar project. Mr. Rahman would oversee the construction of the country's largest bridge across the Padma to check on possible graft and shoddy works and report to the Prime Minister directly on the works' implementation status. During negotiations with the government in January this year, the Washington-based lender asked the government to appoint an independent person as the 'Integrity Adviser' to ensure transparency and accountability of the multi-billion-dollar scheme. Indeed, the Padma multi-purpose bridge is considered not only an extremely important project for the country; it is also the World Bank's largest financial assistance to Bangladesh and the highest IDA credit. The World Bank's centre-point is to support the country in accelerating the economic growth of the southwest region and its potentiality to be the part of regional connectivity. Through retroactive financing, the World Bank has already financed $60 million for environmental and social actions to ensure that the lives of families in the construction zone are better. The development of resettlement sites is underway to protect the land, homes, livelihoods and community assets of local residents. The bridge is expected to reap far reaching economic and social benefits, including faster growth, new jobs, enhanced connectivity and trade within the country and in the broader region, and improved protection against river bank erosion and floods. Both the government and the World Bank have begun formulating a comprehensive development plan for the southwest region in order to maximise the benefits from the bridge. Additionally, the bridge will enhance regional trade and collaboration along the Asian highway No-1 and the Trans-Asian Railway Network systems. It will also connect the two major sea ports in Bangladesh and the river training work will help control river erosion and flooding locally which is a major cause of landlessness and extreme poverty in that area. Construction work of the Padma Bridge will begin at the end of this year if the World Bank gives its due concurrence and other formalities are completed timely. At least three years is needed to complete the bridge which means the Awami League government's dream to open it within its tenure may not materialise, according to a government official. In a further development, the government has decided to construct a second bridge over the Padma river in Paturia at an estimated cost of $1.9 billion with private initiative and without foreign assistance. The cabinet committee on economic affairs at a recent meeting approved in principle the proposal made by the communications ministry for constructing the bridge. The second bridge project would be implemented with private financing. The communications ministry is scheduled to take necessary steps for construction of the bridge soon. The second Padma Bridge would not be a multi-purpose one. The communications ministry would decide about when and how the tender would be floated. The Prime Minister has directed quick implementation of the project, according to reports. The communications ministry sought approval from the cabinet committee to start tender process for appointment of investors to construct the bridge on Build-Own-Transfer (BOT) or public-private partnership (PPP) basis. The ministry also wanted waiver from the obligations of following Bangladesh Private Sector Infrastructure Guidelines. If the government is to depend on development partners for building the bridge, it would have taken much more time. So the government opted for private initiative. Besides, the estimated cost for construction of ongoing first Padma Bridge at Mawa point is $2.4 billion, of which donors made commitment for providing $2.21 billion as assistance. Bangladesh Bridge Authority's (BBA) capacity building by filling up its substantial manpower gap has been caught in bureaucratic tangle and the authority's inability to hire people from the market is likely to make the implementation of its proposal mega projects difficult. The government must take pragmatic step soon to hire skilled and efficient people for the Padma bridge project for its proper implementation. szkhan@dhaka.net