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Padma Bridge Fund

No surcharge this fiscal year

Says Muhith

Staff Correspondent
No surcharge will be imposed in any sector in the current fiscal year for raising funds for the Padma bridge project, Finance Minister AMA Muhith said yesterday.
The government has been considering slapping surcharge for raising funds for the project upon the World Bank's cancellation of its funding over corruption allegations in the project.
Muhith was briefing reporters FROM PAGE 1
yesterday after a meeting with telecom operators and ministry officials al his secretariatoffice.
The minister said Jica President Akihiko Tanaka and the newWB President Jim Yong Kim met on Wednesday night in Washington and discussed the issue of reviewing the Bank's cancellation of its $1.2 billion funding for die project.
“But the meeting's outcome is yet to be known as it was held late last night [ Wednesday night].”
Later in the afternoon, Kei Toyama, Jica senior representative in Dhaka, held a meeting with Muhith at the latter's office.
As Tovama came out of the meeting, journalists wanted to know from him the outcome of the Washington meeting. Toyama told journalists, “Nothing to give you yet.”
Muhith said the government is still considering four alternative sources of funds
for the project.
If the first option — the revival of the loan agreement with the WB -- works, the government won't have to consider the other options, said Muhith.
But if the WB does not change its decision, the government will finalise loan deals with other development partners, including Japan International Cooperation Agency (Jica), Islamic Development Bank (IDB) and Asian Development Bank (ADB).
“The third option is to go for Public Private Partnership and sign a deal with Malaysia for getting funds. If the first two options don't work, we will finalise the loan deal with Malaysia to build the bridge under PPP initiative,” Muhith said.
The fourth and final option is to construct the bridge with own resources, he said.
"I am hopeful that the World Bank will reconsider its decision because
Bangladesh has already fulfilled the Bank’s two [remaining] conditions.”
To fulfil the global lender's conditions, the Anti-Corruption Commission had formed a committee to probe the corruption allegations against former communications minister Syed Abul Hossain and a government official, said Muhith.
The government official, who was allegedly involved in corruption, had already gone on leave, he said.
“Abul is a patriot. He has resigned voluntarily to keep his dignity. He made our task easier.”
Muhith said, “Our decision is to start the project's initial work within this year.”
He said the Economic Relations Division had not sent any letter to the WB to reconsider its loan cancellation, but different newspapers published that the ERD sent a letter to the lending agency for reviewing its decision. “The World Bank has been saying that they have credible evidence [of corruption in the project], but it is not credible to us.” The WB must prove who committed the corruption, he said.
The government has decided to open two bank accounts -- one foreign and one local currency account -- to collect money from people for the bridge project, Muhith said.
People are free to deposit money directly to the accounts. If anybody wishes to donate a big amount through a cheque, the person can seek time from the prime minister for handing over the cheque to her.
But nobody is allowed to deposit undisclosed money with the bank accounts, he said.
The government agency concerned will inform people about the bank accounts through newspaper advertisements, and Bangladesh Bridge Authority will manage the accounts, said the minister.
The WB on June 29 cancelled its $1.2 billion project funding that it had kept suspended since last September on allegations that ex-communication minister Abul and some public officials were involved in corruption in selecting the Canadian company SNC-Lavalin for the bridge's supervisory work.
Muhith yesterday clarified his July 24 comment on Abul's resignation.
Talking to some journalists at his secretariat office on July 24, Muhith said, "Abul is in town”.
The minister meant that the journalists could contact Abul to enquire him about his resignation, as he was in the capital.
But different newspapers and electronic media misquoted Muhith as saying, "Abul is down.”
Muhith clarified it in yesterday's press briefing, and said, “I meant Abul is in town.”