In the wake of the World Bank's (WB) cancellation of its contract with the Government of Bangladesh for $1.2 billion credit for the Padma Bridge, the government faces an acid-test which like any challenge in life can be converted into opportunity.

The World Bank has finally cancelled the assistance agreement for construction of the Padma Bridge. Our worst apprehension has come true. What has happened is really very unfortunate. It is doubly embarrassing because of the alleged reason for cancellation of the agreement. Padma Multipurpose Bridge is a key infrastructural installation which is required for an accelerated and balanced development of Bangladesh.

Cancellation of World Bank funding for the Padma bridge project over alleged corruption in it would have a negative impact on the global donors' perception of Bangladesh. And it would put to question credibility of the government's project implementation process, some economists said yesterday. Prof Wahiduddin Mahmud said, “The government must now come out with a clear, credible and transparent account of what has happened, just a blame game will not do.”

Transparency International Bangladesh (TIB) has termed the World Bank's cancellation of $1.2 billion credit for Padma bridge deeply regrettable, embarrassing and disappointing and urged the global lender to review its decision. It called upon the government to set up a special judicial committee with full powers, independence and technical support to investigate the allegations of corruption and ensure exemplary punishment to those found guilty, said a TIB press statement.

The World Bank's decision to cancel its loan for the Padma bridge was arbitrary, Mashiur Rahman, economic adviser to the prime minister, said yesterday. "The laws or the legal processes were not followed properly [in the cancellation]," he said in an interview with The Daily Star, hours after the WB scrapped its $1.2 billion loan on allegations of corruption in the $2.9 billion project.

The World Bank has cancelled its $1.2 billion credit for the Padma bridge project with immediate effect, saying it has proof of corruption conspiracy involving Bangladeshi officials, executives of a Canadian firm and individuals.

We all could feel what was coming -- cancellation of the Padma Bridge loan. But none of us probably sensed it could come in such a damning way with so much of economic and political ramifications. Bangladesh has never in its lifetime faced such a situation nor has the World Bank since its birth in 1944 cancelled a single infrastructure project of such size because of 'credible evidence corroborated by a variety of sources which points to a high-level corruption conspiracy'.

Leader of the Opposition Khaleda Zia held Prime Minister Sheikh Hasina and her family's "corruption" responsible for the World Bank's cancellation of Padma bridge funding. She made the allegation in Chittagong yesterday on the occasion of distributing relief among landslide and flood victims at Swadhinata Park under Chandgaon Police Station. The BNP chairperson said this government in its election manifesto had pledged to construct the bridge but its ministers opted for demanding commission before the work could start.

The Canadian company SNC-Lavalin had offered at least six influential Bangladeshis, including former communications minister Syed Abul Hossain, huge bribes to obtain the consultant's job in the Padma bridge project.

Qatar is keen to invest in Bangladesh's major projects, including Padma bridge construction, a power project, airport upgrade, river dredging and a manpower training institute.

The Anti-Corruption Commission has found no evidence of the World Bank's allegation of corruption in appointing the contractor of the proposed Padma Bridge project. "The graft allegation [by WB] hasn't been proved, based on the documentary and verbal evidence we have," ACC Chairman Ghulam Rahman told a press briefing at the commission yesterday.

THE Cabinet Committee on Economic Affairs headed by Finance Minister A.M.A. Muhith, decided in principle at a meeting on October 27 to build the 2nd bridge over the Padma River at Paturia-Goalondo under Public Private Partnership (PPP).

The Padma Bridge project holds an important niche in Bangladesh's infrastructural development plans. And so when questions arise about the alleged corruption that may have crept into its planning and implementation, it is a whole nation which is left worried. For two very fundamental reasons: one, the project aims at giving a boost to the economic basis of our society, a truth we cannot lose sight of, and, two, it is undoubtedly embarrassing when questions are raised about the integrity of those involved in its implementation. In light of the above and given the fact that the Canadian authorities are now investigating a Canada-based engineering firm on alleged corruption relating to consultancy work on the project, we welcome the move by the prime minister to order a probe into what has been happening with the Padma Bridge project.

Transparency International Bangladesh has no authority to investigate allegations of corruption in the communications ministry or any other government body, chairman of the Anti-Corruption Commission Ghulam Rahman said yesterday. His comments came a day after Communications Minister Syed Abul Hossain invited Bangladesh chapter of the international graft watchdog to probe if there is any corruption in his ministry. The minister's unusual move came amid allegations of corruption in the bidding process of the $2.9-billion Padma Bridge project.

The communications minister yesterday invited the Transparency International Bangladesh (TIB) to look into any irregularities in the activities of his ministry. The invitation was sent to TIB's office in the capital in a letter signed by Communications Minister Syed Abul Hossain. The latter gave assurance of “full cooperation” in the investigation.

Everywhere I go in Bangladesh, people tell me how happy they are that Padma Bridge will be built. Their happiness is understandable: the bridge will bring exceptional economic and social benefits for the people of Bangladesh, and is a critical link for the broader ambition of a trans-Asian Highway.

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.

Islamic Development Bank (IDB) will provide Bangladesh $140 million loan for construction of Padma Multipurpose Bridge. Finance Minister AMA Muhith and visiting IDB President Dr Ahmad Mohamed Ali signed the loan agreement at the finance ministry yesterday. Earlier, the World Bank signed a credit agreement for $1.2 billion and Japan for $450 million for the bridge project.

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.

World Bank (WB) President Robert B Zoellick has assured additional funding of $300 million for the construction of the proposed Padma Multipurpose Bridge