Sunday, May 6, 2012

Muhith still hopeful of WB fund

Dhaka, May 06 (sunnews24.com) — Finance minister Abul Maal Abdul Muhith still hopeful that the Padma bridge would be constructed with funding from the World Bank and other international lenders. 

However he said it would take time until June this year to resolve the complications created due to World Bank's decision to suspend funding for the project alleging corruption. 

Muhith earlier announced that the work of the Padma bridge project would start in November this year. 

And Bangladesh signed a memorandum of understanding with Malaysia over the project last month. 

But on Sunday, the finance minister in an interview with bdnews24.com reiterated his hope on his return from Manila, capital of Philippines, after attending the annual meeting of the Asian Development Bank. 

Muhith said he had meetings with ADB president and Japanese finance minister. 

"In both the meetings, I explained our position. I told them that there was no corruption in Padma bridge project. The World Bank's allegations are imaginary," said Muhith. 

ADB was supposed to provide $ 610 million and Japan $ 140 million for the $ 2.9 billion Padma bridge project. But the highest $ 1.2 billion was pledged by WB for the 6.15-km-long bridge, Bangladesh's biggest infrastructure project. 

"They offered to take initiative to resolve the issue. I am hopeful that it would be resolved this time and would be positive for us. But I don't think any decision would come before June," Muhith said. 

On a question what would happen to the negotiation with Malaysia while he was pursuing the case with the WB, Muhith said, "Right now, we are negotiating with everyone… We will continue to talk to them… We will not stop any of the negotiations." 

"I said earlier that we have only signed MOU with Malaysia, nothing else. If we get any better option we will take that," the finance minister added. 

Bangladeshi experts said that the country would have to pay only 1 percent interest if the finance comes from international lenders like WB and there would be a grace period of 10 years. 

On the other hand, if the bridge is constructed with funding from Malaysia the interest rate would be over 6 percent and the repayment period would start from the first year of construction. 

Muhith travelled to Manila on Wednesday to attend the ADB meeting held between May 3 and 5. The minister returned on Saturday night. 

The finance minister said, "Although ADB's annual meeting is a forum to discuss policy matters, I raised the issue of Padma bridge and briefed the top ADB officials the situation." 

Muhith said he explained them the importance of the project and that Bangladesh wanted to start as early as possible. "But the imaginary corruption allegation by the World Bank are holding us back," he added. 

An investigation by the Bangladesh's Anti-Corruption Commission into the WB allegation did not find any evidence of anomalies in pre-qualification bidding in the project. 

However, WB said they would wait for the result of investigation being run by Canada before taking a decision. WB suspended an unit of a Canadian company for alleged corruption related to this project. 

On a question whether ADB and Japan would finance the project if WB decided to withdraw from 
funding, Muhith said, "The negotiation is yet to reach that stage. They all want to fund the project and want to take a combine decision." 

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