Muhith seeks ADB aid for Padma bridge

Finance Minister AMA Muhith today sought additional budgetary support, including funds for the Padma bridge project, from Asian Development Bank (ADB) to implement the government’s pre-election pledges.

“I requested them to increase their support to Bangladesh to implement the commitment made through the election manifesto of the government,” he told reporters, replying to a question, following a meeting with visiting ADB Vice-President Xiaoyu Zhao at his office.

Zhao, who arrived here last night on a two-day visit, reviewed the implementation progress of the ADB-assisted projects in Bangladesh and also shared with the finance minister the need for raising ADB’s general capital in view of the increased demand for financial assistance from the bank.

“We’ll continue our cooperation to Bangladesh as the country has a bright future,” he told reporters.

The finance minister said the increased general capital of the international development bank would enhance its capacity to lend more money to the borrowers like Bangladesh. “Increasing capital of the bank would be helpful for us,” he added.

As ADB mobilises funds from outside with its high rating of 'AAA' to lend among its member countries, there is a need to balance the capital adequacy against the lending target. If there were capital shortfall, their credit rating would be downgraded.

Replying to another question, the finance minister said the government would get a concrete idea about the expenditure for the construction of Padma Bridge after completion of the detailed design. “Then the government would try to mobilise resources for the bridge.”

Earlier, the World Bank had estimated that the bridge would cost at around US$ 1.8 billion.

According to Economic Relations Division officials, Bangladesh has so far received funding commitment from ADB (US$ 600 million), World Bank (US$ 300 million) and JBIC (US$ 300 million).

ADB also assured the government to increase their assistance in this regard, if necessary, while Islamic Development Bank (IDB) gave positive response to a Bangladesh request, they said.

The Manila-based development bank is dedicated to reducing poverty in Asia and the Pacific region, including Bangladesh, through pro-poor sustainable economic growth, social development and good governance.

Over the last two years, ADB credit to Bangladesh increased to US$ 2 billion, which is 50 percent higher than the corresponding period of previous years.

The ADB loan approval increased by 113 percent and disbursement increased by 60 percent during the last two years due to efficient implementation of the ADB-supported projects.

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