WB funds for Padma bridge unlikely

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Saturday, 28 January 2012

Author / Source : JAGARAN CHAKMA

DHAKA, JAN 27: The World Bank (WB) is unlikely to provide funds for construction of the Padma multipurpose bridge as it has decided not to extend the time of credit agreement. As per the agreement between the government and the WB, the date of credit effectiveness ended on Friday. Economic Relations Division (ERD) sources said the government asked the WB to extend the time by at least three months.
However, the bank did not show any inclination to extend the time period till Friday. Iqbal Mahmood, ERD senior secretary, said that till Friday, the authorities had not received any message about extending the date of credit activation.
He also said they did not correspond with the WB in this connection. He further said they will not ask the WB to extend the date of activation of credit agreement without the government’s nod.
When asked, the WB country director, Ellen Goldstein, without giving any direct answer to the question said on Thursday: "Canadian law enforcement agencies are currently undertaking an investigation into fraud and corruption in the Padma Bridge project. As part of its essential due diligence, the WB needs to await further results from that investigation before deciding whether to proceed with its USD 1.2 billion investment.
To expedite the investigation, we’ve urged the Bangladeshi anti-corruption authorities to work closely with the Canadian government."
Last October, the bank suspended a USD 1.2 billion loan to the government for the USD 2.9 billion mega project. The Anti-Corruption Commission (ACC) is currently investigating charges of corruption in the Padma bridge project.
Tension between the government and the global lending agency came into the open after the WB made allegations of corruption against the then communications minister, Syed Abul Hossain.