Bangladesh Offers RM6 Billion Bridge Project To Malaysia

[CaPtAiN_pLaNeT]

October 25, 2011 12:43 PM

Bangladesh Offers RM6 Billion Bridge Project To Malaysia

BERNAMA - Bangladesh Offers RM6 Billion Bridge Project To Malaysia

KUALA LUMPUR, Oct 25 (Bernama) -- A Malaysian company has expressed interest in undertaking the RM6 billion Padma Multipurpose Bridge in Bangladesh, possibly through a joint venture with a foreign partner, said Malaysia's Special Envoy, Datuk Seri S Samy Vellu.

Without naming the company, Samy Vellu said he had preliminary discussions with the company recently, after Bangladesh Prime Minister Sheikh Hasina offered the single largest project to Malaysia.

"We are at present studying the feasibility report of the project prepared by consultants appointed by the Bangladesh government," the former Works Minister told reporters here today.

Samy Vellu, who last week concluded a four-day working visit to Bangladesh, which saw Kuala Lumpur signing a deal with Dhaka to implement RM10 billion worth of infrastructure projects, said a study would be undertaken to re-design the bridge to lower the construction cost which was agreed to by Sheikh Hasina.

"I had informed the (Bangladesh) Prime Minister that we need to relook the design. We propose to appoint a consultant to re-design the bridge," he added.

Samy Vellu was appointed the Special Envoy to India and South Asia with Ministerial rank last January.

He said the returns from the bridge investment would be derived from toll collection and did not discount the possibility of Malaysia signing a longer concession agreement with the Bangladesh authorities.

The Padma Bridge project is a priority project of the government of Sheikh Hasina to connect Bangladesh's southern region with the rest of the country. It is estimated that the bridge will add two percent to the country's gross domestic product (GDP).

It was reported that the Padma Bridge project ran into difficulty, when donor agencies led by the World Bank suspended funding for it because of alleged corruption, a charge the Bangladesh government rejected outright.

The 6.15km bridge with 3.68km of land-based approach viaducts on both sides of a river will connect 19 south-western districts and the capital, enhancing access to markets, improving services and accelerating growth.

The bridge will also reduce the distance to Dhaka by about 100km and halve travel times from most areas in the southwest.

Moreover, the bridge will enhance regional trade, by linking with the Asian Highway and Trans-Asian railway network systems. It will also connect the two major seaports in Bangladesh.

 

[idune]

Padma bridge is an far out venture that awami regime has dwindled. To get an idea how much corruption and Awami looting scheme involved see the following construction to compare:

Hangzhou Bay Bridge in China which streaches 36 km over ocean cost $1.7 billion. But Padma bridge will only be 5.5 km would cost 2.9 billion.

36km bridge over sea constructed with $1.7 billion
Hangzhou Bay Bridge


In 2010 alone Awami regime increased the cost by $500 billion.
Padma bridge cost rises by $500mln | | bdnews24.com

Awami regime used this vital national project as grand looting scheme. Corruption from PM to all the way down. That is why Awami regime instead of addressing corruption, going with even more corrupt practice where there will be no independent oversight. Not to mention such joint venture and subsequent cost recovery by jv partner may will burden people with unbareable cost for using the bridge. So the 2% GDP growth which is already overblown, will be next to nothing to add to GDP.

 

[InFn-0]

Padma bridge is an far out venture that awami regime has dwindled. To get an idea how much corruption and Awami looting scheme involved see the following construction to compare:

Hangzhou Bay Bridge in China which streaches 36 km over ocean cost $1.7 billion. But Padma bridge will only be 5.5 km would cost 2.9 billion.

36km bridge over sea constructed with $1.7 billion
Hangzhou Bay Bridge


In 2010 alone Awami regime increased the cost by $500 billion.
Padma bridge cost rises by $500mln | | bdnews24.com

Awami regime used this vital national project as grand looting scheme. Corruption from PM to all the way down. That is why Awami regime instead of addressing corruption, going with even more corrupt practice where there will be no independent oversight. Not to mention such joint venture and subsequent cost recovery by jv partner may will burden people with unbareable cost for using the bridge. So the 2% GDP growth which is already overblown, will be next to nothing to add to GDP.

How come the donor agencies like WB and IMF did nt say anything about it?

 

[idune]

How come the donor agencies like WB and IMF did nt say anything about it?

When World Bank main funding agency found out corruption by regime it asked for investigation. So did other funding agencies like ADB and Japan who stopped the funding. But Awami regime sensing it will get exposed if investigation carried out and do not want to carry any independent investigation. This Malaysian JV is just talk to mask regime corruption and failure. Even it takes place it will broden scope of corruption because there will be no independent oversight and cost will be so high to use the bridge that it will not bring much benefit to people. Not to mention people will be burdened with inflated debt.

WB halts Padma project funding
WB halts Padma project funding | | bdnews24.com

 

[InFn-0]

When World Bank main funding agency found out corruption by regime it asked for investigation. So did other funding agencies like ADB and Japan who stopped the funding. But Awami regime sensing it will get exposed if investigation carried out and do not want to carry any independent investigation. This Malaysian JV is just talk to mask regime corruption and failure. Even it takes place it will broden scope of corruption because there will be no independent oversight and cost will be so high to use the bridge that it will not bring much benefit to people. Not to mention people will be burdened with inflated debt.

WB halts Padma project funding
WB halts Padma project funding | | bdnews24.com

World Bank's problem with the govt was regarding bidding "chandabaji" by our glorious communication minister, but i have not read anything about the cost of the project. If you have any reading material on that subject I would really appreciate if you could share it.

 

[idune]

World Bank's problem with the govt was regarding bidding "chandabaji" by our glorious communication minister, but i have not read anything about the cost of the project. If you have any reading material on that subject I would really appreciate if you could share it.

In post #2 I have post information how 35km bridge cost only $1.7 billion which was constructed over sea. But Awami regime inflated the padma bridge cost to 2.9 billion, that 5.6 km bridge.
You need to read from the link to understand the scale of cost corruption.

 

[Roybot]

No alternative Padma bridge finance: Hasina | | bdnews24.com

 

[idune]

Padma Bridge: AL’s Achilles heels

Faruque Ahmed

Corruption scandals which overshadowed the award of the 2-G spectrum contracts for mobile phones in India have changed the country’s political landscape to a large extent. It has not only brought big troubles to the Congress-led UPA government to rock its foundation.
The Union telecommunication minister A Raja is now in prison, so also is the UPA coalition partner DMP party’s boss Korunanidhi’s daughter Kanomizi MP in connection with contract deal. Raja has been charged with causing a loss of $39 billion revenue to the government from a framed up contract deal in which he gave the award to nine favourites while wiping out other prospective bidders on technical grounds.
Full Story Faruque Ahmed


Corruption scandals which overshadowed the award of the 2-G spectrum contracts for mobile phones in India have changed the country’s political landscape to a large extent. It has not only brought big troubles to the Congress-led UPA government to rock its foundation.
The Union telecommunication minister A Raja is now in prison, so also is the UPA coalition partner DMP party’s boss Korunanidhi’s daughter Kanomizi MP in connection with contract deal. Raja has been charged with causing a loss of $39 billion revenue to the government from a framed up contract deal in which he gave the award to nine favourites while wiping out other prospective bidders on technical grounds. Even the Indian Supreme Court called upon Prime Minister Dr Manmohan Singh to explain his alleged inaction in protecting the national interest while his cabinet minister resorted to foul contract bidding.

Dr Singh had to appear before the court and explain his position and this is how a reluctant UPA government was forced to take action against its cabinet minister ultimately finding a place for him in prison. In Parliament, the major opposition BJP raised the issue seriously, disrupting many sessions and boycotting others to force the government to take some action. Central Bureau of Investigation raided the house of the minister and seized immense wealth including several crore rupees in cash and huge illegal gold stock.

Bangladesh scene
Many critics in Bangladesh in the past few weeks were trying to establish a parallel with the 2-G spectrum contract award with the Padma Bridge project scam in which the major donor to the bridge the World Bank (WB) has reportedly raised the allegation of corruption against the communications minister and asking for his removal.

They said despite clear charges from the WB there is no action by the Anti-Corruption Commission, no raid on the house or business of concerned persons and business firm and no parliamentary debate is taking place either as the major Opposition is boycotting it continuously for the last two years.

Chairman of the Anti-Corruption Commission, Gulam Rahman last week said there are some allegations; it does not prove that corruption has taken place. This is how corruption is being exonerated here, critics say.

BNP chairperson Begum Khaleda Zia said such corruption is now overshadowing the government from the top. Party secretary general Mirza Fakhrul Islam said the government is sheltering corruption instead of punishing it.

The WB allegations which led to recent suspension of its $1.2 billion loan to the Padma Bridge project was reinforced by positive finding of the Canadian police probe into the alleged involvement of the Communications Minister’s private firm SAHCO in awarding a contract to SNC Lavalin, a Canadian firm to work as supervisor of the Padma Bridge project. But the government appears to have taken a policy to ignore all these allegations.

Critics here believe, like the UPA government in India, the grand coalition government of Awami League in Bangladesh is also trying to outmanoeuvre the allegation to save the face of the government from the blame of corruption.

Although the WB has handed over the evidence of communication minister Syed Abul Hossain’s nature of indulgence how he was trying to persuade parties through his private firm to pay money to get names in their firms in the short list of contractors, the government has already cancelled out it as a notional case.

Surprise
Moreover, to divert people’s attention from the allegations of corruptions the Prime Minister last week told a public meeting that the WB letter has actually referred to two corruption cases against the communications minister of the former BNP government. The letter has complained against Barrister Nazmul Huda, it is not against Syed Abul Hossain, as the Prime Minister’s disclosure said. This is how the corruption charge against the government has taken a trading off stance between the present and the past communication minister to the surprise of many.
In fact the World Bank is speaking about present scandal, while the Prime Minister is passing the buck. Meanwhile, the Finance Minister has also made an effort to salvage the government image saying no corruption has so far taken place. So also the communications minister keeps on saying. But the question is: Why has the WB suspended the loan? Why other lead donors like ADB and JICA have also declined to release fund until the corruption charges were cleared and a transparency mechanism is put in place to save the $2.9 billion bridge from any more corruption.
The opposition BNP and other parties have in the first place become struck by the nature of the scandal in a project that the government has announced as a major political agenda to win the next election. The corruption in the bridge project thus made people taken aback how the government is trying to make huge money from a sensitive project risking its execution. Corruption has taken over the bridge and it may also ultimately lose the election game, they said.

Fear of brutal reprisal
But the opposition is failing to mount a bigger movement on the issue on fear of brutal reprisal on leaders and its activists. Democracy is not as free here as in India. Moreover, the emergence of a nationwide anti-corruption movement is not in sight.
There is no Anna Hazare here in the making as in India where the government was compelled to accept the anti-corruption crusader’s demands.

Abrupt halt
Moreover the fate of the anti-corruption movement which was started in August by professional groups and made several gatherings at Shaheed Minar in the city protesting against the communication minister’s massive grafts has come to an abrupt halt on alleged threats from the government.
So there is hardly any chance of accountability of the communications minister and the government as a whole although their corruption scandal has put the mega bridge project to a halt. Analysts see they look forward now how the WB is taking the issue of cleaning corruption from high government places before it resumes funding the bridge project.

Holiday