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Malaysia tables final Padma deal

Posted by bangladesh

Amid whispers ruling out a return for the World Bank in Padma bridge project, Malaysia on Monday submitted to Bangladesh its final proposal on construction of the bridge.

Now bridging the mighty river with assistance from Malaysia requires only the government's consent.

S Samy Vellu, special envoy of the Malaysian government for South Asia, formally handed over a copy of the final proposal to Communication Minister Obaidul Quader at the Setu Bhaban in Dhaka.

The minister said: "A technical committee will scrutinise the proposal and put forward its recommendations to the highest decision-making body."

He said construction would begin within this fiscal year.

Quader declined to disclose the content of the agreement or when the government would take decision on the Malaysian proposal.

"It is a draft agreement and Bangladesh will negotiate on the terms and conditions included in the proposal," the minister said.

Quader said if there was any agreement, the bridge would be built under a build, own, operate and transfer (BOOT) basis and Malaysian Exim Bank will be the lead arranger.

Bangladesh is desperately looking for alternatives to bridge the river Padma after the World Bank refused to lend $1.2 billion in June.

The minister said: "Economic and public interests will be given priority while considering the proposal and agreement will be signed if it doesn't go against national interest."

On the scope of a settlement with the World Bank, Quader said; "You better ask this to the Finance Minister or ERD Secretary."

"The door is still open to any party as we can't say that dispute with World Bank is over."

The global lender in October last year suspended its pledged $1.2 billion fund for the $2.9 billion project to build the first bridge raising corruption allegation. The funds pledged by the other donors also remain suspended.

After the suspension of the World Bank funds, the Malaysian government expressed its interest in the construction of the bridge.

The governments of Bangladesh and Malaysia on Apr 10 signed a memorandum of understanding in Kuala Lumpur on cooperation in the construction of the Padma Bridge and associated facilities.

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