Bangladesh and Malaysia have signed a MoU to build the country’s longest bridge over the river Padma at a cost of US $2.9 billion (TK 23.4 thousand crore).
The Padma Multipurpose Bridge will be built as a government-to-government cooperation project. Malaysian Prime Minister Datuk Seri Najib Tun Razak witnessed the signing ceremony in Kuala Lumpur on Tuesday.
Malaysia’s special envoy to India and South Asia, Datuk Seri S.Samy Vellu, signed on behalf of the Malaysian government while communication minister Obaidul Quader signed on behalf of Bangladesh.
At the signing ceremony, Najib spoke over the telephone with Bangladesh Prime Minister Sheikh Hasina about the US $2.9-billion bridge project, Malaysian news agency Bernama reports.
“I spoke with the Prime Minister of Bangladesh just now. She was proud that we could sign the MoU, as this project is very historical and meaningful, and upon realisation, insallah (God willing), will take the relations between Malaysia and Bangladesh to a higher level,” he told reporters after the signing ceremony.
“Now we will deal with the IDB (Islamic Development Bank) and ADB (Asian Development Bank) on the financing aspect [of the project]. After we have identified the contractors, there will be a ground-breaking ceremony and I hope to be present at the site together with the Prime Minister of Bangladesh.
“The financing will be finalised with the institutions concerned at preferential interest rates,” the Malaysian prime minister said.
He said they would put in motion a process to choose the best contractors based on their capabilities and capacity.
“It’s being worked out. After this MoU, we will work out the details and inform the press,” he added.
Under the MoU, the Malaysian government will form a consortium of Malaysian companies to implement the project on a build, operate, own and transfer basis.
The construction of the Padma Multipurpose Bridge, to be carried out entirely by a Malaysian consortium, is scheduled to begin this year and is expected to be completed in 54 months.
The bridge will connect the south-western region to the rest of Bangladesh, stimulating economic growth by facilitating inter-regional and cross-river transport of passengers and freight, and transmission of natural gas, telecommunications and electricity in a cost-effective manner.
It may be mentioned that the government had signed loan agreements with the World Bank for $1.2 billion, ADB for $615 million, Jica $400 million and IDB for $140 million to construct the 6.15-kilometre bridge but, in October last year, the lead lender World Bank suspended its funding for the project on charges of corruption.
Later, Kuala Lumpur proposed to fund the project and an MoU was supposed to be signed in this regard. But the Bangladesh government did not strike the deal since it would have been contrary to the agreements with the existing donors.
The Malaysian Cabinet has recently approved the Padma Bridge investment proposal.
The MoU is intended to encourage exchanges, cooperation, knowledge and technology transfer, and partnership between the two countries and to enhance the excellence and competitiveness of businesses, particularly in the field of construction of infrastructures in the two countries, according to a communication ministry press release issued in Dhaka on Tuesday. The main objective of the MoU is to cooperate in the planning, development, finance, construction, management, administration and maintenance of infrastructure works on the basis of equity and mutual benefit on mutually agreed terms and conditions, it said pointing out that initially both the Governments will take necessary steps to encourage and promote financial and technical co-operation for the purposes of the Padma Multipurpose Bridge (PMB) Project.
“Under the MoU, public or private sector agency, firm, or company of Malaysia with the relevant expertise and authority, with sufficient experience as agreed by the parties will invest or arrange or mobilize for a sum equal to at least the estimated Project cost as agreed with the GoB and at least USD 2.30 billion (USD Two billion three hundred million) or the estimated Project Cost whichever is the higher, for Implementing the PMB Project” the press release said.
On the basis of this MoU, designated Authority of Malaysia will prepare and submit the technical and financial bid Proposal of the PMB Project for negotiating the construction of the PMB Project on a BOOT basis. This MoU has come into force from today and will remain in force for a period of nine (9) months, it added.
-With The Independent input
