Padma bridge with own fund

Finance Minister AMA Muhith yesterday said the government will construct the Padma bridge with its own resources and form a steering committee for the project's implementation. Hours before leaving for Washington to meet the World Bank president, Muhith told journalists at his residence that a foreign currency account with $1.8 billion will be opened to pay the international bidders. Muhith also hinted that the government may not accept Malaysia's fresh proposal for financing the bridge due to a big difference between the estimated cost in the proposal and the government estimate. “We will construct the bridge with our own resources,” said the finance minister. The government said several times that the project would be implemented with its own resources, but initiatives were also taken to get funds from other sources, said the minister. He said Bangladesh has not yet received any proposal from China. However, a private Chinese firm gave the government a proposal for constructing the bridge. Muhith said a decision on Malaysia's proposal will be made by this month. There have been differences of opinion between Malaysia and Bangladesh over the project's financing. Initially, Malaysia said $2.9 billion would be required to complete the project but now it says $3.8 billion will be needed to build the bridge, he said. “Apart from it, there are even bigger differences which I will disclose after the government makes its decision on the proposal.” The minister said the government will resume the project's work from where it stopped in September 2011. Of the five pre-qualified bidders, one will be dropped for being blacklisted and the remaining four will be offered the job of the bridge's construction. Muhith said some people doubt whether the pre-qualified bidders will take the job if the project is implemented with the government's own resources. A foreign currency account will be opened to dispel the doubt. “There is no doubt about the availability of funds”. He said the country's image abroad will be brightened if the bridge is constructed with the government's own resources. The World Bank and other donors will be informed about the process of the project's implementation, said the minister. Asked whether the government will ask any donor to participate in the project, Muhith said the government would welcome investments from any development partner. But they have to join the project by August, as the bidders will be awarded contracts by that time. On the project's financing, Muhith said the size of the country's annual budget is around Tk 2 lakh crore and it will not be difficult to set aside Tk 5,000 crore a year for the next five years. Muhith said he will hold talks with WB President Jim Yong Kim in Washington on February 27 to strengthen the country's relations with the WB, Bangladesh's largest development partner, following the snags over the Padma bridge funding.