January 13, 2011, Dhaka: The Government of Bangladesh and the World Bank successfully concluded negotiations on a US$1.2 billion concessional credit for the Padma Multipurpose Bridge Project on January 9, 2011. The largest project in Bangladesh, the Padma Multipurpose Bridge is expected to have a transformational effect on the nearly 30 million people living in the south west region, and accelerate growth in the country as a whole. To make construction of this mega-project possible, the World Bank enhanced its financial commitment more than threefold over the past year, making this the World Bank’s largest financing ever for a project in Bangladesh.
“Despite substantial improvement of connectivity, the south west region remains isolated in the absence of the Padma Bridge where the only means of transportation is ferry” said Arastoo Khan, Additional Secretary, Economic Relations Division, Government of Bangladesh, who led the Government negotiating team. “The Padma Bridge would connect the south west region to the rest of the country and help in reducing regional disparities.”
Work is already underway at the project site. Through retroactive financing, Government is taking on up to US$ 60 million in preparatory work now to be reimbursed from the World Bank financing. The retroactive financing is being used for environmental and social actions to ensure that families in the construction zone have land, homes, livelihoods and community assets for improved welfare.
“Given the importance and scope of this operation for Bangladesh, the World Bank wants to ensure the highest quality standards from start to finish of the bridge” said Ellen Goldstein, Country Director, World Bank Bangladesh. “To this end, we’ve worked with the authorities to agree on a Governance and Accountability Action Plan that aims at integrating good governance in project design, enhancing supervision to guarantee quality and ensuring oversight and transparency for greater accountability to the people of Bangladesh.”
To enhance transparency, the project will adhere fully to Bangladesh’s Right to Information Act, and implement a multifaceted communications strategy, including information sharing through the project website, newsletters and radio and television. Accountability will be strengthened through third party monitoring by an independent panel of experts, community-based ‘accountability meetings’ to review the social and resettlement action plans and appointment of an independent Project Integrity Advisor reporting directly to the Prime Minister.
As with other credits from the International Development Association (IDA), the World Bank’s concessionary arm, the financing for the Padma Multipurpose Bridge Project will have a 40 year maturity, including a 10-year grace period, with a service charge of 0.75 percent. The project will be submitted to the World Bank’s Board in late January, for discussion and final approval on February 24, 2011.
