Govt to build it with 3 countries

A consortium comprised of Malaysia, China, India and Bangladesh would finance and construct the much-talked-about Padma bridge, according to the latest government stance.
Bangladesh Army and Bangladesh University of Engineering and Technology (Buet) would also contribute to the construction of approach roads and the protection of river banks under the supervision of the communications ministry, according to government plans.
Besides options would be kept open for other countries and donor agencies to take part in the consortium to finance and build the largest infrastructure project for Bangladesh.
Prime Minister Sheikh Hasina yesterday held a marathon meeting with Finance Minister AMA Muhith, Commu-nications Minister Obaidul Quader, her adviser Gowher Rizvi and a few secretaries to discuss the Padma bridge project.
Most of the participants in the meeting voiced for the Malaysian investment. Both Malaysia and China have already placed formal proposals to the government to finance the $ 2.9-billion project.
Early this month, China has proposed to bear around $ 2 billion for the project on build-operate-transfer (BOT) basis with Bangladesh having to pay no interest for 20 years. Based on the existing design, China has proposed to construct the bridge in three years.
However, the interest rate of the Chinese loan after the grace period could not be known yet.
On the other hand, Malaysia proposes to build the bridge in three years as well and operate it for 35 years to cover the capital and profit before transferring it to Bangladesh.
Malaysian prime minister's special envoy Dato Seri S Samy Vellu is scheduled to arrive in Dhaka today to discuss their investment. Highly-placed sources said ministers Muhith and Quader would begin formal negotiation with the Malaysian envoy tomorrow.
If everything went according to plan, Prime Minister Hasina would soon talk with the Malaysian premier to reach an agreement regarding the project, said sources.
Negotiations with Asian Development Bank (ADB), Japan International Cooperation Agency (Jica) and Islamic Development Bank (IDB) over the project implementation will also continue, added the sources.
The government was keen to construct the 6.15-kilometre bridge under BOT system so that it need not to finance the bridge, said sources, adding that Malaysia, which had earlier signed a memorandum of understanding with Bangladesh, had softened its terms and conditions in line with Bangladesh's proposal.
Another source said even if Malaysia opted for building the bridge, China would play a leading role in constructing it.
“We will go for the option that protects the country's interest the most,” Communications Minister Obaidul Quader told The Daily Star, adding that they were planning to form a consortium with different countries which would finance and construct different segments of the bridge.
He said the government might use for the Padma bridge project the $ 200 million grant from India's $ 1 billion credit.
“But nothing has been finalised yet. The Prime Minister will officially unveil the government's plans on March 2,” Quader added.
Sheikh Hasina is scheduled to unveil the construction plan of the bridge on March 2 at a rally in Madaripur. The very day she will visit the Jazira point of the Padma River in Shariatpur district, inaugurate the river-bank protection works and address a rally there.
Meanwhile, Finance Minister AMA Muhith has recently told parliament that the government would build the Padma bridge with domestic resources keeping the present design intact.
On February 1, the government sent a letter to the World Bank withdrawing the request for financing the Padma bridge project. On January, 23, Prime Minister Sheikh Hasina said the government would construct the Padma bridge with funds from alternative sources, if the World Bank by January did not give any decision on financing the project.
The WB on June 29, 2012 had cancelled its $ 1.2 billion funding in the project, saying it had proof of a "corruption conspiracy" in the project involving Bangladeshi officials, executives of a Canadian firm and some individuals.
The global lender maintained that it would finance the project if former communications minister Syed Abul Hossain was included in the list of accused in the case filed over the corruption conspiracy.
Meanwhile, the finance minister is scheduled to meet the WB president on February 27 to request him to invest the promised $ 1.2 billion in other infrastructure projects in Bangladesh.