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Padma Bridge Project

2 other financiers now opt to 'wait'

Jica, ADB decide to see how govt settles WB's graft allegations, reports private TV channel

Staff Correspondent
Following the World Bank's lead, the Asian Development Bank and Japan International Cooperation Agency (Jica) have “withheld'' funding for the Padma bridge project, reported Channel i last night.
Jica said it would wait for the outcome of the talks between the WB and Bangladesh government over corruption allegations involving the project.
The Daily Star, however, could not independently verify the report.
Talking to a Channel i reporter in Japan,
Ichiguchi Tomohide, director of Jica Bangladesh Desk, said, "Of course, our stance against corruption is quite stringent.”
The World Bank is handling the matter. But since Jica has not received enough information from the bank, it will wait and see, Ichiguchi said.
He said the Canadian police with the WB are probing the matter, and Jica is waiting for the WB and Bangladesh government to reach a settlement.
"We have just extended the deadline for effectuation of the loan agreement...We
have never suspended the project,” he told Channel i.
Meanwhile, World Bank Country Director Ellen Goldstein yesterday said the bank's integrity vice presidency has shared information on the Padma bridge project with the government as part of its “due diligence”.
“The World Bank Group works in challenging governance environments, while maintaining standards of integrity that allow most effective use of our resources,” Goldstein said after the launch ofWorld Development Report 2012 at the Westin hotel in the capital.
In Bangladesh, the World Bank is firmly committed to transparency in everything it does to ensure that Bangladeshis get the full development benefits of the bank's support, she said in a statement.
Her statement comes after publication of news reports on the WB integrity vice president handing over a letter and a probe report on the project to Finance Minister AMA Muhith in Washington.
On September 21, Leonard F McCarthy, integrity vice president of World Bank, handed over the letter to Muhith in Washington raising corruption allegations against Communications minister Syed Abul Hossain and his business firm Sahco.
The WB is coordinating the project's funding. It is also the biggest donor with a funding of $1.2 billion. The ADB is providing $600 million, Jica $400 million and IDB $140 million.