Bangladesh snubs World Bank loan for Padma Bridge project

[CaPtAiN_pLaNeT]

Bangladesh snubs World Bank

Bangladesh snubs World Bank - bdnews24.com

Staff Correspondent, bdnews24.com
Published: 2013-02-01 05:20:11.0 Updated: 2013-02-01 06:20:17.0

Bangladesh has told the World Bank that it is formally withdrawing its bid for loans to co-finance the $2.9 billion Padma Bridge project but will pursue the probe into the alleged corruption, the Bank said in a statement.


"The Government of Bangladesh yesterday informed the World Bank that it is withdrawing its request of World Bank financing for the Padma Bridge," said the statement released on Friday.

Asked by bdnews24.com on Friday morning, Finance Minister A M A Muhith confirmed the Dhaka decision and reaffirmed the Prime Minister’s statement that Bangladesh would go ahead with the biggest infrastructure project, if necessary, with its own resource.

"The letter to the World Bank confirms the authorities' intent to continue the investigation of alleged corruption related to the project,” the terse, two-paragraph statement from the Bank said.

“The World Bank has taken note of the Government's decision of not seeking renewed World Bank financing for the Padma Bridge, and it encourages the Anti-Corruption Commission to complete a full and fair investigation of the corruption allegations.”

The Bank was to lend a part of the requirement -- US $1.2 billion -- along with the Asian Development Bank, Japan’s JICA and Jeddah-based Islamic Development Bank.

Dhaka’s decision comes after a year-long tussle with the Washington-based Bank over alleged conspiracy to steal the project money, a significant part of which would come from the government’s own sources.

Muhith told bdnews24.com that the government had informed the other lenders too of its decision not to seek the World Bank loan for the project.

“I had told the World Bank earlier, ‘let me know your decision [by January]’. But I didn’t get any response. So [we] wrote letters to the World Bank, ADB and JICA yesterday (Jan 31).”

“We have told the World Bank that we are withdrawing the request to review your decision. We do not need you any more to finance this project,” Muhith told bdnews24.com on Friday morning.

“At the same time, we have requested the ADB, IDB and JICA to stay with us. I am confident they will continue to support us for this project.”

Asked what would be the fate of the project now, the minister said: “The Prime Minister has already said that we will implement the project with our own resource if necessary. We’ll now quickly start working towards that end.”

“It will be easier for us if ADB, IDB and JICA continue to support us as they have been all along,” Muhith said.

“We will now move quickly. We had pledged in our election manifesto that we would bridge the mighty Padma. We will act accordingly.”

Officials say the government decided to continue pursuing the WB fund because of its low interest costs and kept other commercial borrowing options on hold.

 

[idune]

No financing until 'certain conditions' are met: Kim

Published : Friday, 01 February 2013

FE Report

World Bank President Jim Yong Kim has ruled out the possibility of the Bank's financing the Padma Bridge project until 'certain conditions' are met.

The Bank also needs to be assured of credible investigation into alleged corruption by the Bangladesh authorities, he observed on Wednesday while speaking on anti-corruption at the Center for Strategic and International Studies (CSIS) in Washington DC.

His predecessor Robert Zoellick suspended the Bank's committed $1.20 billion loan for the Padma Bridge on the ground of alleged corruption in the bidding process.
The WB, however, agreed to reconsider the loan, putting some conditions including a credible probe into alleged corruption in the bidding process of the multi-billion dollar project.

The WB-constituted three-member panel of independent experts is now overseeing investigation by the ACC.

But when the ACC filed a case against seven persons excluding former Communications Minister Syed Abul Hossain from the list of accused, the WB's funding appeared to be uncertain. The external panel was unhappy over the investigation process during its last visit to Dhaka.

The latest observation by the WB president in Washington gives now a clear message about the Bank's unwillingness to re-engage itself with the project in view of the developments until now concerning the follow-up actions by the Anti-Corruption Commission (ACC), the watchdog body in Bangladesh.

The WB chief’s speech came a few days after Prime Minister Sheikh Hasina’s comment that the government would go for alternative financing for the Padma bridge project in the case of no WB decision by January this year.

Last week, Finance Minister AMA Muhith said he had sought an appointment with the WB Group President in February to get the latest position of the WB on the financing of the Padma Bridge project.

However, the Communication Minister later the same week stated that the chapter about the possible WB's re-engagement with the Padma Bridge project would be closed after the January 31, 2013 deadline, set by the government.

Prime Minister Sheikh Hasina told the parliament on Wednesday that the construction work of the Padma Bridge would begin during the current tenure of the government.

Meanwhile, Finance Minister Mr. Muhith is still awaiting an appointment with the WB president.

Kim in his speech last Wednesday in Washington said: "Should we shy away from high-risk interventions and forgo the potentially massive benefits to the poor or should we rather take a calculated risk, design appropriate safeguards and move forward with them? My answer is that we need to take risks for development results but we have to do so with our eyes open and try to mitigate those risks as much as we can."

The World Bank ramped up its enforcement measures under the tenure of Zoellick. The bank's enforcement unit, the Integrity Vice Presidency, sanctioned 83 entities in 2012 for fraud or corruption on bank projects, a 247 per cent increase from 2011. Kim lauded the work of the unit and its chief, Leonard McCarthy, on Wednesday.

Kim also highlighted the International Corruption Hunters Alliance, a global network of anti-corruption enforcers launched by the World Bank in 2010.

Meanwhile, Chairman of the Anti Corruption Commission (ACC) Ghulam Rahman told the FE Thursday the ACC had have already sent its reply to several queries of the WB panel.

In its reply, the commission has clarified its position over the issue, he added.

The WB-panel appointed independent panel of external experts is officially engaged to oversee ACC's probe into the alleged corruption plot to ensure a transparent, complete and comprehensive investigation into the bribe conspiracy.

"So, I don't want to make any comment on the speech of the WB head," he said.

Financial Express :: Financial Newspaper of Bangladesh

 

[monitor]

Grape are sour

 

[animelive]

Its best if the work on bridge doesn't start while this government reigns. Th height of corruption would be enourmous

 

[Luffy 500]

"Bangladesh snubs World Bank", what a epic awami headline? This is the extent of propaganda twist and shameless yellow journalism that awami propaganda outlets like BDnews24 do, even is its not worth the readers time. Blind sell out fagots with 0 journalistic ethics.It would have been more prudent if the OP @CaPtAiN_pLaNeT tried to use a little bit of his rational thinking ability before posting this crap titled news, if he didn't want to do some awami dalali i.e.

 

[scholseys]

Let me get this straight, last year Padma bridge withdrew the loan for the bridge and put the deal under investigation. They sent a team investigating the corruption, then Hasina comes out giving a deadline on the 23rd of January, 2013. Then snubs WB. What a masterstroke by BAL

Then finance minister says that we can't build the bridge within this tenure of the government, then home minister comes out saying we are starting it by this tenure with the help of India, Malaysia

 

[PlanetSoldier]

hasina 500 it kinse bridge er kaj shuru korar jonno...all the best for bal thug association ...gaye mane na hasina morol!!

 

[scholseys]

When will world bank release the details of the corruption?

 

[p3avi8tor69]

The WB has details of the corruption, which is probably why the A.L. wants this thing to die and find other sources for funding, even, if it meant making the country pay more so that they can protect their skin.

 

[CaPtAiN_pLaNeT]

ADB backs off Padma

ADB backs off Padma - bdnews24.com

Staff Correspondent, bdnews24.com
Published: 2013-02-01 17:35:46.0 Updated: 2013-02-01 17:50:20.0

Belying Bangladesh’s hopes of funding the bridge over the Padma, after it decided to no more seek credit from The World Bank, the Asian Development Bank has said it would not co-finance the project.

“The World Bank is the main financier of the Project and ADB a co-financier, alongside Japan International Cooperation Agency and Islamic Development Bank. Given this cofinancing arrangement, a discontinuation of funding by the World Bank means ADB is also unable to proceed with the transaction,” the Manila-based bank announced in a statement on Friday.

The World Bank committed $1.2 billion in loans, the ADB $610 million, Jeddah-based IDB $140 million and the JICA $400 million with the rest coming from Bangladesh government.

It further said on its website: “ADB has just been informed by the Government of Bangladesh of its decision to disengage from World Bank financing of the Padma Multipurpose Bridge Project, as they think they are stuck on the project almost indefinitely because of the investigation about the conspiracy of corruption. “

The ADB said it remained ‘hopeful that such an important project will be built’ but insisted that the Anti-Corruption Commission continue ‘a full and fair investigation’ into inquiries into suspected corruption.

Bangladesh had told the World Bank on Thursday that it was formally retracting its request for loans for the $2.9 billion project.

"The Government of Bangladesh yesterday informed the World Bank that it is withdrawing its request of World Bank financing for the Padma Bridge," the Bank said in a statement released on Friday.

Finance Minister AMA Muhith had hoped that ADB along with IDB and JICA will continue to “support us as they have been all along”.

“We have requested the ADB, IDB and JICA to stay with us. I am confident they will continue to support us on this project.”

 

[Spring Onion]

La Hassina wa la bharati corruption shines

 

[Skallagrim]

Unfortunate, but we deserved it anyway. BNP thieves would be lucky if they come to power.

 

[Luffy 500]

JICA goes the ADB way


After the ADB, the Japan International Cooperation Agency (JICA) has also pulled out of the Padma bridge project, two days after the government retracted its request for funding to the World Bank.


“As a co-financier, we are unable to continue our commitment under the current framework. Our policy requires the highest standard of ethics,” said a JICA Bangladesh office media release Saturday.

It said the Bangladesh government informed the JICA of their decision to withdraw the request for funding of the Padma project by the World Bank.

“It is regrettable that they could not find the way to go forward under the current financial framework and our efforts did not help overcome the difficult situations, although we have been intensively consulting with GoB and the other co-financiers after WB cancelled the loan last June.”
JICA goes the ADB way - bdnews24.com

 

[Luffy 500]

hasina 500 it kinse bridge er kaj shuru korar jonno...all the best for bal thug association ...gaye mane na hasina morol!!

U can be damn sure that before the end of this BAL tenure, a foundation stone of Padma bridge will be erected spending some cr of Taka which will be dubbed as "BAL goes solo in Padma bridge project". It will then be inflated as a great success of BAL regime arguing people to vote for it again offcourse accompanied by praises from Budhijibis and awami dalals. Don't be surprised if Captain planet fall for that as well.

 

[scholseys]

adb and jica have left