Cost rises to $2.9b for design change; Muhith terms talks with WB fruitful; donors firm on graft issues
Construction of the Padma Bridge will start in March next year instead of this year, and the cost will be $2.9 billion instead of the earlier projection of $2.4 billion, said Finance Minister AMA Muhith yesterday.
The construction cost increased due to changes in the design, and some other factors, he said.
Speaking at a media briefing returning from a month-long visit to the US, leading a delegation, the finance minister said they had fruitful discussion with the World Bank about the Padma Bridge project.
He also said although there were some differences of opinion with the WB on the bridge, those were resolved.
The WB indicated that it will provide $1.5 billion instead of its earlier commitment of $1.2 billion.
Prime Minister’s Adviser on Economic Affairs Mashiur Rahman told the briefing that the WB gave Bangladesh a clear signal regarding corruption, saying it will engage a separate agency to probe any irregularity occurring in big projects financed by it.
All donors including the WB decided if any company is debarred by any donor for corruption, it will no longer qualify for any donor funded project, he said.
The briefing was held at the finance ministry where the finance minister also presented in detail the outcome of the delegation’s visit to the west.
Muhith said the WB is very sensitive about corruption. It recently introduced a separate wing to monitor integrity. If it receives any allegation against any company, it will investigate that.
He added, the policy will be applied to all countries receiving WB fund.
On September 15 a delegation led by Finance Minister Muhith went to the US. The finance minister returned yesterday, although some members of the team had returned earlier.
The delegation attended different programmes in the US including the annual meeting of the WB and IMF. The Bangladesh delegation held bilateral meetings with top officials of various agencies including the WB president.
They also met the Indian finance minister, and the Chinese vice-minister to discuss bilateral issues.
Another development is that the Islamic Development Bank (IDB) already provided $140 million for the Padma Bridge.
The finance minister said the WB and IMF will give $1 billion each as budget support. He said a great achievement is that the amount is condition-free. Only the reform programmes outlined by the government in this fiscal year’s budget must be implemented.
Mashiur said China for the first time waived some loans taken by Bangladesh till 2008. He however did not elaborate on the matter.
Economic Relations Division Secretary Musharraf Hossain Bhuiyan said the amount of Chinese loan to be waived is $120 million.
India demanded that Bangladesh waives transit fees on river routes. Asked about that, Mashiur spoke in favour of the demand, but the National Board of Revenue (NBR) opposed it.
Mashiur said him and NBR are working for the same government. He added, according to the river protocols, Indian ships have been using Bangladesh river routes for a long time.
However, there have been hindrances, and some new obstacles have also arisen.
Mashiur cited the restrictions imposed by the shipping ministry, and NBR and said the ships will ply the same routes as they did before signing of the India-Bangladesh joint communiqué.
On the imposition of tax by the NBR, he said the decision will be taken after a review that is going on now.
