WB actively engaged in Padma deal revival process: Mozena
Bangladesh’s friendly countries trying to woo WB, he says
Dhaka, Aug 29 (UNB) – US Ambassador Dan W Mozena on Wednesday said the World Bank is actively engaged in the revival process of the much-talked-about Padma Bridge loan deal and his country and Bangladesh’s other friends are working in this regard.
The US envoy made the remarks while talking to reporters after a meeting with Finance Minister AMA Muhith at his secretariat office.
Mozena named the US, India and Japan on the list of the friendly countries which are working in favour of Bangladesh to reinstate the WB loan for the multibillion dollar bridge project.
“Bangladesh government and the World Bank are continuing its discussion to reach an understanding, we’re hopeful that there’ll be an understanding. The US wants that Padma Bridge will be constructed,” he said.
After the construction of the bridge, he mentioned, the GDP growth of Bangladesh will increase by more than one percent.
About his meeting with the Finance Minister, Mozena said they had a fruitful meeting and the Finance Minister knows the USA will help Bangladesh get the WB loan back.
Mentioning that the WB’s Padma Bridge credit deal cancellation decision frustrated his country, the ambassador said: “I’m very pleased to know the discussion is going on and hopeful there’ll be an outcome from this discussion.”
Muhith told the journalists that it would not be wise for him to make any statement at the moment. “I had earlier told you the discussion was going on and this is the crucial moment.“
Pointing at the USA envoy, the Finance Minister said they are helping Bangladesh get the WB loan back. “Japan, the USA and India are helping Bangladesh. And they’re the main…,” he said.
On the ADB and Jica’s extended timeline that expires on August 31, he said the government may seek further time extension. “If there’s any necessity I may request them, I don’t know, I don’t know.”
Muhith also said the response from different quarters is so far good enough.
Earlier, in the morning, Muhith at Shahjalal International Airport told reporters that the Prime Minister before going to the Nam summit in Tehran asked him to do whatever necessary for the restoration of the Padma bridge project loan.
He said the Prime Minister’s absence will not create any problem in taking any decision in this regard.
The Prime Minister went to Tehran on a four-day tour this morning to attend the Nam Summit.
Earlier, in the day, the US envoy met Industries Minister Dilip Barua at his Shilpa Bhaban office and discussed various issues, including the Padma Bridge funding.
Talking to reporters after the meeting, Mozena said his country and other friendly nations are working together so that the World Bank takes a positive decision on the Padma Bridge funding.
He said the economic growth of Bangladesh would increase by more than one percent if the Padma Bridge project is implemented.
Mozena said Bangladesh has become a hub of trade and commerce in the South and Southeast Asia due to its geographical location and hoped that the Padma Bridge will help gear up the economy.
Industries Secretary KH Masud Siddiqui was also present at the meeting held at Shilpa Bhaban.
In October last, the World Bank suspended its promised US$ 1.2 billion funding for the Padma bridge project following charges of corruption.
On August 22, Finance Minister AMA Muhith reiterated that discussions were on with the World Bank and told reporters something has to be done within 7-8 days regarding financing of the Padma Bridge project.
“Two other co financiers -- Jica and ADB -- earlier extended their loan effectiveness by a month till August 31 to have a final decision from the World Bank, and something has to be done by August 31,” he said while exchanging views with reporters at his secretariat office.
Background
Ecnec approved a project proposal worth Tk 10,000 crore back in 2007 to construct the country’s longest bridge. And since then the work for the project implementation began.
The past military-backed caretaker government initiated the design work of the project with financial assistance from the Asian Development Bank.
In January 2009, the present government decided to take forward the agenda and decided to appoint a consulting firm for the design work.
Engineering feasibility study was completed by the year-end. Then the government sought assistance for the project from the development partners and concluded loan agreements worth US$2.3 billion with four development partners (DP) in early 2011.
An agreement for UD$1.2 billion was signed with the World Bank on 28 April, 2011.
Loan agreements were also signed with Jica on 18 May for US$ 415 million, with the IDB on 24 May for US$ 140 million and with ADB on 6 June for US$ 615 million.
It was estimated at that time that the project would cost around US$ 2.90 billion (around Tk 20,000 crore as per the existing exchange rate).
The project's work has remained stalled since September last year amid corruption allegations that forced Bangladesh to further engage with the WB in settling the issue and also look for alternative sources of funding for the $2.9 billion project.
The proposed 6.2-kilometre (3.8 miles) bridge over the Padma River will connect the capital with the country's 16 south-western districts. The bridge is to have a highway and a railway line.
The US envoy made the remarks while talking to reporters after a meeting with Finance Minister AMA Muhith at his secretariat office.
Mozena named the US, India and Japan on the list of the friendly countries which are working in favour of Bangladesh to reinstate the WB loan for the multibillion dollar bridge project.
“Bangladesh government and the World Bank are continuing its discussion to reach an understanding, we’re hopeful that there’ll be an understanding. The US wants that Padma Bridge will be constructed,” he said.
After the construction of the bridge, he mentioned, the GDP growth of Bangladesh will increase by more than one percent.
About his meeting with the Finance Minister, Mozena said they had a fruitful meeting and the Finance Minister knows the USA will help Bangladesh get the WB loan back.
Mentioning that the WB’s Padma Bridge credit deal cancellation decision frustrated his country, the ambassador said: “I’m very pleased to know the discussion is going on and hopeful there’ll be an outcome from this discussion.”
Muhith told the journalists that it would not be wise for him to make any statement at the moment. “I had earlier told you the discussion was going on and this is the crucial moment.“
Pointing at the USA envoy, the Finance Minister said they are helping Bangladesh get the WB loan back. “Japan, the USA and India are helping Bangladesh. And they’re the main…,” he said.
On the ADB and Jica’s extended timeline that expires on August 31, he said the government may seek further time extension. “If there’s any necessity I may request them, I don’t know, I don’t know.”
Muhith also said the response from different quarters is so far good enough.
Earlier, in the morning, Muhith at Shahjalal International Airport told reporters that the Prime Minister before going to the Nam summit in Tehran asked him to do whatever necessary for the restoration of the Padma bridge project loan.
He said the Prime Minister’s absence will not create any problem in taking any decision in this regard.
The Prime Minister went to Tehran on a four-day tour this morning to attend the Nam Summit.
Earlier, in the day, the US envoy met Industries Minister Dilip Barua at his Shilpa Bhaban office and discussed various issues, including the Padma Bridge funding.
Talking to reporters after the meeting, Mozena said his country and other friendly nations are working together so that the World Bank takes a positive decision on the Padma Bridge funding.
He said the economic growth of Bangladesh would increase by more than one percent if the Padma Bridge project is implemented.
Mozena said Bangladesh has become a hub of trade and commerce in the South and Southeast Asia due to its geographical location and hoped that the Padma Bridge will help gear up the economy.
Industries Secretary KH Masud Siddiqui was also present at the meeting held at Shilpa Bhaban.
In October last, the World Bank suspended its promised US$ 1.2 billion funding for the Padma bridge project following charges of corruption.
On August 22, Finance Minister AMA Muhith reiterated that discussions were on with the World Bank and told reporters something has to be done within 7-8 days regarding financing of the Padma Bridge project.
“Two other co financiers -- Jica and ADB -- earlier extended their loan effectiveness by a month till August 31 to have a final decision from the World Bank, and something has to be done by August 31,” he said while exchanging views with reporters at his secretariat office.
Background
Ecnec approved a project proposal worth Tk 10,000 crore back in 2007 to construct the country’s longest bridge. And since then the work for the project implementation began.
The past military-backed caretaker government initiated the design work of the project with financial assistance from the Asian Development Bank.
In January 2009, the present government decided to take forward the agenda and decided to appoint a consulting firm for the design work.
Engineering feasibility study was completed by the year-end. Then the government sought assistance for the project from the development partners and concluded loan agreements worth US$2.3 billion with four development partners (DP) in early 2011.
An agreement for UD$1.2 billion was signed with the World Bank on 28 April, 2011.
Loan agreements were also signed with Jica on 18 May for US$ 415 million, with the IDB on 24 May for US$ 140 million and with ADB on 6 June for US$ 615 million.
It was estimated at that time that the project would cost around US$ 2.90 billion (around Tk 20,000 crore as per the existing exchange rate).
The project's work has remained stalled since September last year amid corruption allegations that forced Bangladesh to further engage with the WB in settling the issue and also look for alternative sources of funding for the $2.9 billion project.
The proposed 6.2-kilometre (3.8 miles) bridge over the Padma River will connect the capital with the country's 16 south-western districts. The bridge is to have a highway and a railway line.
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