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Padma Bridge Loan Revival

Resignation ball in Mashiur’s court

PM not going to ask him to go; tells key ministers to convince WB

Staff Correspondent
With time running out, the prime minister yesterday asked the finance minister to convince the World Bank to renew its loan commitment for the Padma bridge without requiring her Economic Affairs Adviser Mashiur Rahman to resign.
After the cabinet meeting, Sheikh Hasina discussed the issue with some
senior ministers, including Finance Minister AMA Muhith, a highly placed government source told this paper.
A cabinet member has said Muhith has been explaining to the premier the need for Mashiur’s resignation as a last resort to get the $1.2 billion loan, which the WB cancelled
onjune29 over a" corruption conspiracy." But the PM directed Muhith to take
SEE PAGE 19 COL 5 FROM PAGE 1 initiatives to secure the funding based on the steps the government had already taken, the minister added, preferring not to be named.
The government must reach an agreement with the global lender in this regard within this week, as the loan effectuation date given by the project co-financiers ADB and Jica expires on August 30. The two donors extended the deadline four times.
The WB gave a "clear signal" that it would withdraw the loan cancellation if the government met three conditions, including removing Mashiur.
According to the minister who talked to The Daily Star yesterday, Hasina refuses to believe that any corruption happened in the $2.97 billion project. And that is why she is unwilling to exert pressure on Mashiur to step down.
Nevertheless, the premier might not have any reservations if Mashiur resigned voluntarily, the minister said, adding that he himself was of the view that the adviser
should go.
The finance minister's attempt to salvage the project might fall flat if Mashiur remained in the post, the minister noted.
Mashiur, also the integrity adviser of the Padma bridge project, was not available on the phone for comments yesterday. He told journalists on Sunday that he would step down if Hasina told him that he had failed to do his job faithfully.
A finance ministry official said it was unlikely that the WB would accept any proposal on financing the 6.15km bridge with Mashiur still in office.
Still, the Economic Relations Division will update the global lender on the latest position of the government.
Another minister on condition of anonymity told this correspondent that if the adviser was reluctant to resign, his going on leave might as well be acceptable to the WB.
Asked, Muhith declined to brief journalists on the latest
situation and said he would do so tomorrow.
MALAYSIAN PROPOSAL Meanwhile, Malaysia yesterday submitted a final proposal on financing the bridge project.
Dato Seri S Samy Velu, the Malaysian prime minister's special envoy to India and South Asia, handed over the proposal documents to Communications Minister Obaidul Quader at the Shetu Bhaban in the capital's Mohakhali.
"This is the final proposal of Malaysia for constructing the Padma bridge project," Obaidul told reporters after receiving the proposal.
He, however, declined to elaborate on the proposal.
The proposal now will go to a technical committee for assessment, the minister said, adding that government high-ups would make the final decision on it.
Malaysia had earlier submitted four proposals, which were reportedly incomplete and full of inconsistencies.