Selection of lead donor left to PM
Tuesday, 22 December 2009
FE Report
Prime Minister Sheikh Hasina will select a lead donor for bank-rolling the Padma bridge project in a day or two, as four top policymakers failed to come up with a name, officials said.
Finance Minister AMA Muhith and his three senior colleagues at a close-door meeting Monday failed to pick the lead-donor of the country's US$2.40 million infrastructure project.
After the meeting Mr Muhith said they would request the Prime Minister to select the lead donor for coordinating the multi-donor bank-rolling of the project.
Planning Minister AK Khandokar, Economic Adviser Dr Mashiur Rahman, Communications Minister Syed Abul Hossain, secretaries and high officials of related ministries discussed the proposed funding at the meeting presided over by Mr Muhith.
Mr Muhith said the government would float tender by February next year to select contractors for the construction of the 6.15 kilometres long road-cum-rail bridge over the river Padma.
The World Bank will provide $1.20 billion, Asian Development Bank $550 million, Japan government $300 million, Islamic Development Bank $130 million and UAE's Abu Dhabi Fund $30 million, Mr. Muhith said.
"Though the project cost has enhanced, the government will not require investing more as the four donors will lend over two billion dollars for the project," he told reporters.
Economic Relations Division (ERD) officials said anti-poverty lenders, the World Bank and the Asian Development Bank (ADB), are in the race for the honour after they assured the government of financing US$1.75 billion for the project.
One of the participants at the meeting told the FE that in order to pick a lead donor all funding conditionalities were discussed at length.
"But opinions of discussants differed on selecting a lead donor from the two major competitors WB and ADB, as both have contributed to the project," he said.
The finance ministry would send a note to the Prime Minister Tuesday seeking her opinion, the official said.
"One of the two multi-lateral lenders will be selected as the lead-donor for the project. We need to make the selection quickly to coordinate multi-donor lending of the project and execute other necessary ground works," an ERD official said.
The lead-donor will be responsible for channeling funds and act as a go-between the donors and the government on issues such as final design of the project, tendering and procurement.
The government had appointed Auckland-based firm Maunsell-Aecom for designing and estimating the cost of the bridge.
The Manila-based ADB, which had provided nearly $27million for designing the multipurpose bridge, committed early this month $550 million more- $250 million over its earlier assurance.
The World Bank assured the ERD last week of raising financial support to $1.20 billion from its earlier pledge of $460 million for building the rail-cum-road bridge.
"After selection of the lead-donor, mobilisation of funds from the donors and other project activities will proceed," the official added.
The Awami League government has made Padma Bridge one of its top priorities and wants to finish the project by 2013, a year before its five-year tenure ends.
Prime Minister Sheikh Hasina will select a lead donor for bank-rolling the Padma bridge project in a day or two, as four top policymakers failed to come up with a name, officials said.
Finance Minister AMA Muhith and his three senior colleagues at a close-door meeting Monday failed to pick the lead-donor of the country's US$2.40 million infrastructure project.
After the meeting Mr Muhith said they would request the Prime Minister to select the lead donor for coordinating the multi-donor bank-rolling of the project.
Planning Minister AK Khandokar, Economic Adviser Dr Mashiur Rahman, Communications Minister Syed Abul Hossain, secretaries and high officials of related ministries discussed the proposed funding at the meeting presided over by Mr Muhith.
Mr Muhith said the government would float tender by February next year to select contractors for the construction of the 6.15 kilometres long road-cum-rail bridge over the river Padma.
The World Bank will provide $1.20 billion, Asian Development Bank $550 million, Japan government $300 million, Islamic Development Bank $130 million and UAE's Abu Dhabi Fund $30 million, Mr. Muhith said.
"Though the project cost has enhanced, the government will not require investing more as the four donors will lend over two billion dollars for the project," he told reporters.
Economic Relations Division (ERD) officials said anti-poverty lenders, the World Bank and the Asian Development Bank (ADB), are in the race for the honour after they assured the government of financing US$1.75 billion for the project.
One of the participants at the meeting told the FE that in order to pick a lead donor all funding conditionalities were discussed at length.
"But opinions of discussants differed on selecting a lead donor from the two major competitors WB and ADB, as both have contributed to the project," he said.
The finance ministry would send a note to the Prime Minister Tuesday seeking her opinion, the official said.
"One of the two multi-lateral lenders will be selected as the lead-donor for the project. We need to make the selection quickly to coordinate multi-donor lending of the project and execute other necessary ground works," an ERD official said.
The lead-donor will be responsible for channeling funds and act as a go-between the donors and the government on issues such as final design of the project, tendering and procurement.
The government had appointed Auckland-based firm Maunsell-Aecom for designing and estimating the cost of the bridge.
The Manila-based ADB, which had provided nearly $27million for designing the multipurpose bridge, committed early this month $550 million more- $250 million over its earlier assurance.
The World Bank assured the ERD last week of raising financial support to $1.20 billion from its earlier pledge of $460 million for building the rail-cum-road bridge.
"After selection of the lead-donor, mobilisation of funds from the donors and other project activities will proceed," the official added.
The Awami League government has made Padma Bridge one of its top priorities and wants to finish the project by 2013, a year before its five-year tenure ends.