WB to raise aid by 20pc for next three yrs: Muhith
Wednesday, 5 August 2009
FE Report
The World Bank is going to increase aid to Bangladesh by 20 per cent to US$1.0 billion per annum for the next three years, said Finance Minister AMA Muhith Tuesday.
The multilateral lending agency gave $800 million in the last three years.
"Bangladesh's share in International Development Association (IDA) has been increased according to the criteria set by the IDA," he said after a meeting with the visiting World Bank vice president Isabel Guerrero, who arrived in the capital Monday on a five-day visit.
The Asian Development Bank has also increased its assistance by 33 per cent to $800 million per annum for the next three years.
The World Bank officials expressed their unwillingness to fund projects in roads and highways due to massive corruption, said the finance minister.
"I told them you are also responsible for the corruption as you have endorsed the projects," he said.
The WB should fund the roads and highway projects as it is important to develop the infrastructure of the country, he added.
"We are going to change the policies related to corruption to contain the social scourge," Mr Muhith said adding, "The rules for the construction of Padma Bridge will not be the same as that of the Jamuna (Bangabandhu) Bridge."
He said the government might go for reexamining the projects where corruption has been committed.
The minister said the country has weathered the impact of global recession and the economy is performing well during the recession period.
The WB is providing support in bringing change in the public procurement rules, he said.
"The change will be for small projects like Tk 2 million to Tk 10 million as we want new entrepreneurs to come forward," he said adding, "The PPR will not be changed for big projects."
The bank wants to provide support for Padma Bridge and through that it wants to help develop the southern region of the country, the minister said.
The multilateral lending agency wants to finance a project for developing Mongla Port and it also expressed its willingness to fund Gorai river project, he said.
"The World Bank will also assist in reclaiming clogged sea or river channels. But we have not submitted any project proposal to them as yet," the minister said.
About the power sector, he said the WB was engaged in several projects in the sector and it would assist the country in future.
Replying to another question the minister said the government will not declare the new pay scale in August.
"There are three reports - Pay Commission report, the Defence report and Secretaries Committees' report - and all the reports need to be analysed before declaring the pay scale," he said.
In the budget, the finance minister declared that the new pay scale would be effective from July 1 and the government has earmarked Tk 31 billion for the new pay scale.
WB interim country director Robert Floyd said they have discussed the entire gamut of economic cooperation with the finance minister.
"Climate change, water resources, social safety net, power, infrastructure, health and education are the sectors where the World Bank is willing to assist the country," he said.
The lending agency will help the government in social safety net programme to cushion the impact of the global recession, he added.
They also discussed information technology and rural development project, Mr Floyd said.
The World Bank is going to increase aid to Bangladesh by 20 per cent to US$1.0 billion per annum for the next three years, said Finance Minister AMA Muhith Tuesday.
The multilateral lending agency gave $800 million in the last three years.
"Bangladesh's share in International Development Association (IDA) has been increased according to the criteria set by the IDA," he said after a meeting with the visiting World Bank vice president Isabel Guerrero, who arrived in the capital Monday on a five-day visit.
The Asian Development Bank has also increased its assistance by 33 per cent to $800 million per annum for the next three years.
The World Bank officials expressed their unwillingness to fund projects in roads and highways due to massive corruption, said the finance minister.
"I told them you are also responsible for the corruption as you have endorsed the projects," he said.
The WB should fund the roads and highway projects as it is important to develop the infrastructure of the country, he added.
"We are going to change the policies related to corruption to contain the social scourge," Mr Muhith said adding, "The rules for the construction of Padma Bridge will not be the same as that of the Jamuna (Bangabandhu) Bridge."
He said the government might go for reexamining the projects where corruption has been committed.
The minister said the country has weathered the impact of global recession and the economy is performing well during the recession period.
The WB is providing support in bringing change in the public procurement rules, he said.
"The change will be for small projects like Tk 2 million to Tk 10 million as we want new entrepreneurs to come forward," he said adding, "The PPR will not be changed for big projects."
The bank wants to provide support for Padma Bridge and through that it wants to help develop the southern region of the country, the minister said.
The multilateral lending agency wants to finance a project for developing Mongla Port and it also expressed its willingness to fund Gorai river project, he said.
"The World Bank will also assist in reclaiming clogged sea or river channels. But we have not submitted any project proposal to them as yet," the minister said.
About the power sector, he said the WB was engaged in several projects in the sector and it would assist the country in future.
Replying to another question the minister said the government will not declare the new pay scale in August.
"There are three reports - Pay Commission report, the Defence report and Secretaries Committees' report - and all the reports need to be analysed before declaring the pay scale," he said.
In the budget, the finance minister declared that the new pay scale would be effective from July 1 and the government has earmarked Tk 31 billion for the new pay scale.
WB interim country director Robert Floyd said they have discussed the entire gamut of economic cooperation with the finance minister.
"Climate change, water resources, social safety net, power, infrastructure, health and education are the sectors where the World Bank is willing to assist the country," he said.
The lending agency will help the government in social safety net programme to cushion the impact of the global recession, he added.
They also discussed information technology and rural development project, Mr Floyd said.