Padma bridge tender in February

The government is expected to float an international tender for construction of Padma Multipurpose Bridge next February as a high-powered coordination meeting yesterday finalised a revised estimated cost of US$ 2.4 billion for the 6.15 km bridge.
The cost almost entirely will be financed by the country’s development partners, which has gone up by one billion dollar from the initial estimate of US$ 1.4 billion.
The Economic Relations Division (ERD) informed the meeting that the donors agreed to provide $2.25 billion of the total construction cost of $2.4 billion. The remaining amount will come from the government coffer. The donors recently increased their earlier funding commitment by about 101 percent.
After the meeting the finance minister AMA Muhith, who chaired the inter-ministerial meeting at the Finance Ministry told journalists, “Now there is no shortfall in funding for the Padma Bridge construction. So we will hold a coordination meeting with the lead donor next month, and invite tenders in February.”
Initially the total construction cost had been estimated at $1.4 billion, which was re-estimated at $2.4 billion after the final study, Muhith said.
The World Bank (WB) made a commitment to provide $1.2 billion, increasing its earlier commitment of $460 million. ERD officials said the full amount of the WB funding will be in soft loan.
The Asian Development Bank (ADB) committed to provide $550 million increasing its earlier commitment of $300 million. Five hundred million of the ADB money will come as commercial loan and the remaining will be in soft loan.
Japan also raised its commitment to $300 million in soft loan from its earlier pledge of $200 million. Japan Debt Cancellation Fund (JDCF) will channel an additional $41.48 million as grant to the project from Bangladesh’s debt owed to that country.
Islamic Development Bank will give $130 million, and Abu Dhabi Development Fund will provide $31.40 million as loans.
Yesterday’s meeting also discussed who will work as the lead donor. The finance minister said the lead donor will be selected in consultation with the prime minister.
Muhith said no doubt the highest fund provider is likely to be the lead donor. However, in selecting the lead donor, its relations with other development partners and the government, and its technical capacity will also be taken into consideration.
The selected lead donor will have to post a high-powered official in Dhaka for prompt decisions.
The finance minister told the reporters, during the first year of the present government’s tenure the Padma Bridge project has seen much progress, which was not seen during any past government’s tenure.
For quick construction of the bridge some experts have to be appointed and some vehicles have to be purchased, the minister added.
Planning Minister AK Khandker, Communications Minister Syed Abul Hossain, Prime Minister’s Economic Affairs Adviser Dr Moshiur Rahman, and other high officials were also present at the meeting.
Syed Abul Hossain said, “The Padma Bridge project took off after we assumed power, and it will be completed within the tenure of this government. When the bridge is built 1.2 percent will be added to our national GDP.”

Image Courtesy: The Daily Star