$615m ADB loan for Padma Bridge

The government yesterday signed a $615 million loan agreement with Asian Development Bank (ADB) for the Padma Multipurpose Bridge project although some major issues are still to be taken care of. Secretary of Economic Relations Division M Musharraf Hossain Bhuiyan and ADB Country Director Thevakumar Kandiah signed the deal at the National Economic Council in the capital's Sher-e-Bangla Nagar. As per the loan agreement, Bangladesh will repay the $615 million in two categories. Of it, $539 million will be considered as Ordinary Capital Resources with one percent interest rate for the first eight years' grace period and 1.5 percent interest rate for the post-grace period of 32 years. And the rest, $76 million, is Asian Development Fund with one percent interest rate for 27 years including a grace-period of seven years. The government has earlier signed deals of $1.2 billion with the World Bank (WB), $400 million with Japan International Cooperation Agency (Jica) and $140 million with Islamic Development Bank (IDB) to arrange fund for the Padma bridge project. Although components like rehabilitation, resettlement and construction of approach roads of the mega project are making good progress, two most important components -- construction of the main bridge and river training -- are being delayed for various reasons. Evaluation reports by aspiring firms on the main bridge construction and river training have been sent to the WB five months ago and the bank is yet to give approval, said officials concerned. “We are expecting World Bank's approval by June,” said Communications Minister Syed Abul Hossain at a post-deal briefing. Without the WB concurrence, Bangladesh cannot float tender for the main bridge construction and river training. Speaking at the briefing, S Hafeed Rahman, director general of ADB's South Asian Department, said the Padma bridge will be a landmark achievement for Bangladesh. “The main challenge, however, lies ahead, that is ensuring successful and timely completion of the project.” ADB had earlier provided Bangladesh with $27.6 million for feasibility study and detailed design of the bridge. Prime Minister's economic adviser Moshiur Rahman, Communications Minister Syed Abul Hossain, ADB Vice President (Operations 1) Xiaoyu Zhao and representatives of the WB, IDB and Jica also spoke at the function. The country's longest 6.15 kilometre bridge, including 3.68km land-based approach viaducts on both sides of the river, will connect 19 south-western districts with the capital. The government has targeted to complete the bridge by 2015.