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No financing until 'certain conditions' are met: Kim (WB Pres)

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No financing until 'certain conditions' are met: Kim (WB Pres)
Reply to queries of independent panel already given: ACC chief

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
 
According to ADB calculation Padma bridge would have increased Bangladesh GDP by 1.2% per year. Going by current GDP figure, Bangladesh lost 1.2% GDP boost for at least 4 years. Meaning $6.2 billion GDP loss ($1.56 billion GDP loss per year X 4 years). All because wholesale Awami League corruption and subsequently Awami League regime refusal to take legal action against its own corrupt minister, PM and her close relatives.

Bangladeshis has every right to recover this $6.2 billion GDP loss from Awami League by seizing properties of any and all Awami League leaders and their families.

Padma Bridge to boost GDP by 1.2pc: ADB

Source: http://www.defence.pk/forums/bangla...bridge-boost-gdp-1-2pc-adb.html#ixzz2Jfr67EHE

Asian Development Bank (ADB) has estimated that the rate of Bangladesh's gross domestic product (GDP) growth would increase by 1.2 per cent after completion of construction of the Padma Bridge, reports UNB.

The regional growth rate in the southwest region of the country will increase by 3.5 per cent due to the same reason, according to the bank.

Padma Bridge to boost GDP by 1.2pc: ADB
http://www.defence.pk/forums/bangladesh-defence/82084-padma-bridge-boost-gdp-1-2pc-adb.html
 
ADB also cancels Padma loan

Staff Reporter

The Asian Development Bank (ADB),a co-financer of the much-hyped Padma Multipurpose Bridge project, has withdrawn itself from the project.

ADB had pledged a $615 million loan for the bridge construction.

In a statement, the Manila-based multilateral lender said on Monday, "It understands and respects the reasons that have led World Bank to reach its decision. ADB and the World Bankfollow similar policies, rules and procedures on governance and fiduciary oversight."


"However, given the importance of the project to the country and the region, ADB also deeply regrets that both parties were unable to reach a workable agreement to move the operation forward," it added.

The global bank also termed Padma 'a landmark project for Bangladesh and the region' and said, "The World Bank is the lead financier and arranger, working alongside the Asian Development Bank, Japan International Cooperation Agency and Islamic Development Bank."

It also said the ADB had earlier been informed by the WB of its decision to withdraw its financing from the Padma bridge project.

ADB has a longstanding relationship with the government of Bangladesh and its people and reiterates its commitment to their long-term development needs, the statement added.

The World Bank (WB) on Friday cancelled a $1.2 billion credit for the 6.2-kilometre (4-mile) bridge project over the Padma River with immediate effect, saying it has proof of graft conspiracy involving Bangladeshi officials, executives of a Canadian firm SNC-Lavalin, and individuals.

Meanwhile, Japan International Cooperation Agency (JICA), a co-financer of Padma bridge project, in a statement on Monday said it would take decision on the project after having a discussion with the Japan government.

"The situation is very much regrettable in spite of the efforts between the government of Bangladesh andthe World Bank. We will consider our position to the project with the consultation with the Japanese government, referring to the other co-financers positions," the statement said.

JICA was committed to funding$400 million for the project.

The project's work has remained stalled since September last year amid corruption allegations that forced Bangladesh to further engage with the WB in settling the issue and also look for alternative sources of funding for the $2.9 billion project.

The proposed 6.2-kilometre bridge would connect the capital with the country's 16 south-western districts. The bridge is to have a highway and a railway line.

http://thenewnationbd.com/newsdetails.aspx?newsid=44414
 
Padma Bridge Project - JICA too pulls out

DHAKA: After the World Bank and the Asian Development Bank, Japan International Cooperation Agency (JICA) has decided to pull out of Padma Bridge project.

A statement from JICA’s Dhaka office confirmed this Saturday.

The statement said "As a co-financier, we are unable to continue our commitment under the current framework."

The statement went on to add, "It is regrettable that they could not find the way to go forward under the current financial framework and our effort did not help to overcome the difficult situations, although we have been intensively consulting with GOB and the other co-financiers after WB canceled the loan last June."

JICA had pledged US$400 million for Padma Bridge.

Another co-financier Islamic Development Bank is yet to finalise its decision on funding the project.

JICA too pulls out | National | Bangla Mail English Version
 

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