WB suspends $1.2b pledged funding for Padma Bridge

FE Report The World Bank (WB) has suspended its pledged funding worth US$ 1.2 billion for Padma Bridge amid allegation of corruption in the bidding process of the country's longest multipurpose bridge, Finance Minister AMA Muhith said Monday. The government will also investigate the corruption allegations, he added. "The WB has temporarily suspended funding for Padma Bridge," Muhith told reporters at his secretariat office. He said the WB has officially lodged complaints with both the governments of Bangladesh and Canada about irregularities in the bidding process of the Padma Bridge. "We are yet to finalise the modality and terms of reference (TOR) for the proposed investigation," Muhith told the reporters, adding that a statement in this connection will soon be issued from the Ministry of Finance (MoF). "I will soon convene a press briefing on this particular issue," the finance minister said. Muhith refused to make any comment when asked about the involvement of a business house owned by an influential minister of the incumbent government in the alleged irregularities and corruption. Meanwhile, Ellen Goldstein, Country Director, World Bank Bangladesh responding to an e-mail query from this correspondent said Monday that WB will not proceed on disbursing pledged fund for Padma Bridge until the Bank is fully satisfied on the fraud and corruption front. 'The World Bank is committed to good governance and anti-corruption issues. As we have said from the outset, we will not proceed until we are fully satisfied on the fraud and corruption front,' reads the e-mail of Ellen Goldstein. 'This is in the interests of the people of Bangladesh. We can confirm that our Vice President for South Asia has recently visited Bangladesh where she met with the Prime Minister and raised concerns about investigations relating to the Padma Bridge project. Their dialogue is ongoing,' the mail of WB says further. The Finance Minister Sunday said that the WB wants the government to probe alleged irregularities in the appointment of a consultant for the Padma Bridge project. A senior official in the MoF said the WB in a letter to Muhith has recently requested him to take necessary actions relating to corruption allegations in the project's tendering process to get the pledged fund from the Bank. The estimated cost of the Padma Bridge project is US$ 2.9 billion. The WB Board approved $ 1.2 billion and committed to providing an extra $ 300 million later. Asian Development Bank, Islamic Development Bank and Japan are the other financiers of the Padma Bridge project. Earlier this year, the government sent a list of five pre-qualified bidders for the consultancy job to the WB for its approval. Of the five, the lowest bidder was a Canadian company, SNC-Lavalin Group Inc. The Canadian authorities are investigating corruption charges against SNC-Lavalin Group Inc following a WB request.