Padma Bridge to go public
Shakhawat Hossain | Wednesday, 20 August 2008
The communications ministry has decided to convert the Padma Multipurpose Bridge into a company and offload its shares to finance construction work involving $1.8 billion (180 crore), officials said Tuesday.
'The decision, first of its kind in the country's history, has been taken at a recent meeting of the ministry chaired by the communications adviser,' said a ministry official.
Converting the Padma Multipurpose Bridge (PMB) into a company and offloading its shares now require only the approval of the board of the newly-formed bridge division under the ministry.
The board meeting of the bridge division is scheduled to be held Thursday next.
It is expected to back the ministry decision that will usher in a new era in the country's capital market which lacks quality shares, said the official.
According to officials concerned, the share offloading will be one of the options to mobilise the local fund worth $650 million for paving the way for construction of the 6.01 km Mawa-Jajira bridge over the river Padma.
The communications ministry has already asked the bridge division to prepare a plan for offloading the company shares and getting it approved by the council of advisers.
The plan will also be included in the proposals on the amount of fund to be raised from the capital markets and the volume of shares to be offloaded, said the official.
Among other options, the communications ministry has already decided to securitise the Jamuna Multipurpose Bridge, divert funds from the annual development programme (ADP) and seek loans from the local private commercial banks.
Multilateral lending agencies have already assured loans worth $1.15 billion for the bridge, the scheduled construction work of which has been delayed by two years to 2010.
Asian Development Bank (ADB) that will provide the highest $350 million in credit will select a firm this month to complete the bridge design in the next couple of years.
World Bank (WB) and Islamic Development Bank will lend $300 million each and Japan Bank of International Corporation (JBIC) $200 million.
ADB and IDB will charge interest on the loans at the rate of 3.49 per cent while WB and JBIC have offered their loans at 0.01 per cent interest and 0.75 per cent service charge respectively.
The 25-metre wide, four-lane Padma Bridge having railway track is expected to take six years for construction 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 the acquisition for construction of the bridge.
'The decision, first of its kind in the country's history, has been taken at a recent meeting of the ministry chaired by the communications adviser,' said a ministry official.
Converting the Padma Multipurpose Bridge (PMB) into a company and offloading its shares now require only the approval of the board of the newly-formed bridge division under the ministry.
The board meeting of the bridge division is scheduled to be held Thursday next.
It is expected to back the ministry decision that will usher in a new era in the country's capital market which lacks quality shares, said the official.
According to officials concerned, the share offloading will be one of the options to mobilise the local fund worth $650 million for paving the way for construction of the 6.01 km Mawa-Jajira bridge over the river Padma.
The communications ministry has already asked the bridge division to prepare a plan for offloading the company shares and getting it approved by the council of advisers.
The plan will also be included in the proposals on the amount of fund to be raised from the capital markets and the volume of shares to be offloaded, said the official.
Among other options, the communications ministry has already decided to securitise the Jamuna Multipurpose Bridge, divert funds from the annual development programme (ADP) and seek loans from the local private commercial banks.
Multilateral lending agencies have already assured loans worth $1.15 billion for the bridge, the scheduled construction work of which has been delayed by two years to 2010.
Asian Development Bank (ADB) that will provide the highest $350 million in credit will select a firm this month to complete the bridge design in the next couple of years.
World Bank (WB) and Islamic Development Bank will lend $300 million each and Japan Bank of International Corporation (JBIC) $200 million.
ADB and IDB will charge interest on the loans at the rate of 3.49 per cent while WB and JBIC have offered their loans at 0.01 per cent interest and 0.75 per cent service charge respectively.
The 25-metre wide, four-lane Padma Bridge having railway track is expected to take six years for construction 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 the acquisition for construction of the bridge.