BANGLADESH

Director General of South Asia Department of the Asian Development Bank (ADB) Juan Miranda has reasserted the bank's stance as a co-financer in the Padma bridge project and assured of continued support.

"Let me repeat that words that I want in your headline – this bridge will be built," he told journalists following a meeting with Finance Minister Abul Maal Abdul Muhith at the Secretariat on Thursday.

When asked whether the Manila-based bank would remain on-board for the project, Miranda reassured: "ADB is as of today and as of tomorrow, ADB is a co-financier in this project."

To another query whether the ADB would extend the loan effectuation date, he again said, "This bridge will be built."

The Director General came to Dhaka on Tuesday night on a two-day official trip.

The genesis and further

The Padma bridge project has been in the throes of uncertainty ever since the lead financier, World Bank, cancelled its loan agreement of $1.2 billion for the mega project on June 29 saying it had "credible evidence" of a high-level corruption conspiracy among Bangladeshi government officials.

On July 31, the ADB and the Japan International Cooperation Agency (JICA), who were to provide major chunks of the remaining funds needed for the $2.9 billion project, extended their loan effectuation deadline to Aug 31.

The Asian lender has pledged to provide $610 million, while the JICA would contribute $400 million to the project, and the Jeddah-based Islamic Development Bank is committed to another $140 million.

Ever since the World bank pulled itself out of the project, the government has been stating that the bridge would be built with own fund, if need be, but the Finance Minister has been trying to persuade the World Bank to return.

On Aug 28, Muhith reiterated his hopes about the global lender getting on board again to finance the ambitious project. "Still, I have time until Aug 31. Don't get frustrated. So far nothing has happened to get frustrated."

Muhith made the observation as newspapers in the last two days had reported that the lending agency would not release the promised fund since all the conditions it had laid down were not fulfilled. It was rumoured that Prime Minister's Economic Affairs Advisor Mashiur Rahman is going to resign as per the bank's demand, but no such evidence is available to date.

After the Washington-based agency raised allegations of corruption last year, it gave the government some conditions for checking corruption in the project. As those remained unmet, it pulled out of Bangladesh's largest infrastructure project.

In the wake of controversy over the allegation of corruption, former Communications Minister Syed Abul Hossain resigned in July last year and former Bridges Division Secretary Mosharraf Hossain was sent on leave.

Loan deadline extension to be urged

When journalists approached to the finance minister on Thursday and asked for his comment, he said, "You got the message."

The minister said he would not talk with the press on holidays. Friday and Saturday are holiday in Bangladesh.

"I am busy preparing my tax return. I will not talk during the holidays," he said.

However, on Wednesday, the minister, responding to queries by journalists about whether the government would appeal the project's co-financers to extend their Aug 31 deadline, said that they 'might'.

Officials of the ministry's Economic Relations Department said that the government was indeed drafting a letter for the ADB urging an extension.

Prime Minister's Economic Affairs Advisor Dr Mashiur Rahman on Sunday said he would have no problems stepping down if the Prime Minister wanted and it removed complications regarding the World Bank financing of the Padma bridge project.

He made the comment amid whispers that he had resigned to meet one of the global lender's conditions for getting back on board for the ambitious scheme.

"If my resignation resolves the complexity over the $ 2.9 billion loan, then why once, I will resign ten times if needed," Mashiur, also the project's integrity advisor, told journalists in front of his official Hare Road residence.

"But if there are any accusations, then the proofs behind them have to be presented and I will have to be given the scope to defend myself."

He skirted a direct reply when asked if he had resigned already. Mashiur said the government should come up with a statement on the matter first and then he might give his reactions. The Finance Minister will speak for the government, he insisted.

Finance Minister AMA Muhith did not appear for journalists to take questions on the issue, neither did he go to his office. Around 3:15pm, his Assistant Personal Secretary A S M Rashed told journalists that the Minister will not be talking with them on the issue just yet.

However, a well-placed source has confirmed bdnews24.com he met with Prime Minister Sheikh Hasina around noon.

bdnews24.com's Senior Correspondent Reazul Bashar said that the car carrying the advisor when he left his residence around 5:15pm had the flag of Bangladesh on it, a clear sign that he was still in office.

The Washington-based lender had given a number of conditions for the government to fulfil after raising graft allegations and suspended the fund for the project in September last year after Canadian authorities launched investigation against SNC-Lavalin, a firm shortlisted as consultant of the project.

On June 30, it cancelled its promised loan of $1.2 billion for the country's biggest-ever infrastructure project claiming that the government did not implement their requisites.

After the deal was scrapped, Information Communications and Technology Minister Syed Abul Hossain, who was the Communication Minister when the allegations were raised, resigned and former Bridges Secretary Mosharraf Hossain was sent on leave.

After Eid, rumours swirled that the advisor would also be following similar steps and a number of dailies ran stories on the issue on Saturday.

Muhith on Saturday told bdnews24.com at his Minto Road residence that the barriers to an understanding with the World Bank are being removed one by one. He also expressed hopes of reaching a resolution within a week.

The advisor time and again ducked questions from the media crew on Sunday about the gossips that he had stood down.

Mashiur went on to compare his predicament with a character of Franz Kafka's well-known novel 'The Trial': "The author showed a person on trial, but without saying what crime he had committed."

He also referred to James Frazer's comparative study of mythology and religion, The Golden Bough, and pointed out, "When people in ancient Greece started working on any establishment, they would put human blood in its foundation. When they were not getting any human blood, they started using chicken blood."

"When even that became scarce, they started building on the shadow of chickens. A business revolving around the shadow started afterwards."

At this stage, journalists asked whether the government was not giving him the scope to explain himself. Mashiur said, "If you want to blame anyone, he should be given the chance to defend himself."

The World Bank was to fund $ 1.2billion for the six-kilometre bridge that was estimated to cost $ 2.9billion. Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) were supposed to fund most of the remaining budget.

Even though, the World Bank cancelled their funding, ADB and JICA extended the deadline for their deals to Aug 31. So the government will have to reach a resolution with WB before that.

Communications Minister Obaidul Quader said on Sunday Malaysia will submit a final proposal on the Padma bridge project in three weeks.

After meeting Malaysia's Special Envoy to South Asia on Infrastructure S Samy Vellu, Quader told reporters, "The Malaysian delegation has placed the concession agreement of the [Padma bridge] project on the costs during and afterwards the construction and how it will be returned."

He would not be drawn on the specifics of the concession agreement before the final proposal is in.

"There are some strategic problems if I talk about it," Quader added.

The meeting between the Communications Minister and a seven-strong Malaysian delegation, led by Vellu, began around 11:45am and ran for an hour.

The envoy also met Finance Minister Abul Maal Abdul Muhith on Sunday noon on the proposal submitted on Jun 28 to build the Padma bridge.

But the Finance Minister declined to say anything about their meeting. He told reporters, "I won't say anything. The Communications Minister will say what is necessary."

Quader said the final proposal will be screened. "The evaluation committee headed by Dr Jamilur Reza Chowdhury will examine Malaysia's final proposal. Then it will be sent to the law ministry for vetting. The Cabinet will take the final decision about the proposal after that."

Though he did not say anything clearly about what the Malaysians proposed, the minister said the final proposal will be a 'win-win' one for both countries.

Asked whether the government has abandoned the idea of building the bridge with its own funding, Quader said, "The government has ditched the Cabinet's decision. But why would we say no if anybody wants to help?"

He also said the possibility of establishing a consortium, led by Bangladesh, to build the Padma bridge cannot be ruled out.

Asked whether the Malaysian envoy said anything about beginning the bridge's construction, Quader told reporters, "They want to begin the work within this year."

Earlier, Quader had told reporters that he will take iftar with the Malaysian envoy and have a second meeting with them at 3pm Monday.

Dhaka had contacted Kuala Lumpur to construct the 6.15-kilometre long Padma bridge, which would connect the capital with 16 districts of backward south-western region, after the Bangladesh government ran into a dispute with the World Bank.

The global lender in Jun 29 pulled out of the $2.9 billion project raising corruption allegations, throwing funds pledged by the other donors into uncertainty.

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

On May 28, a delegation of the Malaysian government, led by Samy Vellu, had submitted a proposal to the Communications Minister to build the country's largest infrastructure.

Meanwhile, Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) extended their loan deal for the project by a month last Wednesday after the government had written to the three other donors including Islamic Development Bank (IDB) to keep the funds available.

Of the proposed $2.9 billion project, the World Bank had agreed to provide $1.2 billion and ADB pledged $610 million. The Jeddah-based IDB is to provide $140 million and JICA said it would contribute $400 million in the project.

On Jul 1, Muhith in a press conference refuted the corruption charges the World Bank had levelled against the government in cancelling its loan and urged the global lender to review its decision.

All major roads and highways of Bangladesh would be expanded to four lanes within the next 20 years, so says a Communications Ministry master plan.

A copy of the 'Road Master Plan' was officially handed over to Communications Minister Obaidul Quader on Tuesday, Roads Division Secretary M A N Siddique told bdnews24.com adding that this is the first long-term plan of this kind.

The plan also suggests building a number of new bridges and puts more emphasis on the maintenance of the existing roads, instead of the prevalent practice of prioritising construction of new roads.

"The plan has been made taking into account 20-year projections of population, traffic and demand for roads," the Secretary added.

The Roads and Highways Department will implement the plan under the supervision of the Communications Ministry and funding from the Asian Development Bank (ADB).

The plan would soon be put up on the Communications Ministry website.