WB approves $1.2b for Padma Bridge
FE Report | Saturday, 26 February 2011
FE Report
The World Bank (WB) has approved US$ 1.2 billion, its largest IDA credit, for the world's third largest bridge project over river Padma. The project, when implemented, would ensure connectivity between the south-west region and the rest of country and benefit 30 million people. The approval was given during the multilateral lending agency's executive board meeting held in Washington Thursday. With the WB endorsement, the country's mega Padma multipurpose bridge project received confirmed approval of almost $2.0 billion from donors against its total estimated cost of Tk 2.9 billion. Asian Development Bank has already approved $615 million at its board meeting for the project while Islamic Development Bank completed signing of an agreement to provide $ 140 million it had earlier committed. Japan International Cooperation Agency (JICA) has also committed to provide $ 400 million for the project. A WB press release issued Friday said the credit from the International Development Association (IDA), the World Bank's concessional lending arm, has a 40-year maturity, including a 10-year grace period, while it carries a service charge of 0.75 per cent. Besides, the bank has also assured the government of providing an additional $ 300 million for the project if needed after the commencement of the construction work, officials said. World Bank's South Asia Vice-President Isabel Guerrero after the meeting said the construction of the bridge would fulfil the long-standing dream of the people of the south-west region. "We've been working closely with the Government of Bangladesh on a Governance and Accountability Action Plan that ensures strict supervision to prevent fraud or corruption and guarantees quality and transparency," she said. The 6.1 km long bridge will reduce greatly the travel time between Dhaka and south-west Bangladesh, enhancing the access of the people of the region to markets and services and accelerating growth in the country as a whole. 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 of Bangladesh. Given its size, complexity and expected impact on local communities, it includes state-of-the-art safeguards and accountability features. Transparency has been emphasised throughout every step of its preparation and design, the WB release added. WB Country Director for Bangladesh Ellen Goldstein appreciated the tremendous support of local people for the bridge and believed that it will have 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. "We have also begun identifying with the government a comprehensive development plan for the south-west region in order to maximise the benefits from the bridge." The Padma Bridge project will adhere fully to Bangladesh's Right to Information Act which will include information sharing through the project website, social media, newsletters, and broadcasts on radio and television, the press release said. 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. 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 World Bank (WB) has approved US$ 1.2 billion, its largest IDA credit, for the world's third largest bridge project over river Padma. The project, when implemented, would ensure connectivity between the south-west region and the rest of country and benefit 30 million people. The approval was given during the multilateral lending agency's executive board meeting held in Washington Thursday. With the WB endorsement, the country's mega Padma multipurpose bridge project received confirmed approval of almost $2.0 billion from donors against its total estimated cost of Tk 2.9 billion. Asian Development Bank has already approved $615 million at its board meeting for the project while Islamic Development Bank completed signing of an agreement to provide $ 140 million it had earlier committed. Japan International Cooperation Agency (JICA) has also committed to provide $ 400 million for the project. A WB press release issued Friday said the credit from the International Development Association (IDA), the World Bank's concessional lending arm, has a 40-year maturity, including a 10-year grace period, while it carries a service charge of 0.75 per cent. Besides, the bank has also assured the government of providing an additional $ 300 million for the project if needed after the commencement of the construction work, officials said. World Bank's South Asia Vice-President Isabel Guerrero after the meeting said the construction of the bridge would fulfil the long-standing dream of the people of the south-west region. "We've been working closely with the Government of Bangladesh on a Governance and Accountability Action Plan that ensures strict supervision to prevent fraud or corruption and guarantees quality and transparency," she said. The 6.1 km long bridge will reduce greatly the travel time between Dhaka and south-west Bangladesh, enhancing the access of the people of the region to markets and services and accelerating growth in the country as a whole. 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 of Bangladesh. Given its size, complexity and expected impact on local communities, it includes state-of-the-art safeguards and accountability features. Transparency has been emphasised throughout every step of its preparation and design, the WB release added. WB Country Director for Bangladesh Ellen Goldstein appreciated the tremendous support of local people for the bridge and believed that it will have 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. "We have also begun identifying with the government a comprehensive development plan for the south-west region in order to maximise the benefits from the bridge." The Padma Bridge project will adhere fully to Bangladesh's Right to Information Act which will include information sharing through the project website, social media, newsletters, and broadcasts on radio and television, the press release said. 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. 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.