Padma bridge with own funds, says Muhith

Finance Minister AMA Muhith on Saturday said Bangladesh plans to bridge the mighty Padma with its 'own resources' and Tk 68.52 billion will be allocated for the purpose in the forthcoming budget.

That would mean just under one-third of the project cost would be earmarked for the $2.9-billion prestigious project in the national budget.

“The framework for the project will be announced within a week,” Muhith told editors of national dailies and television channels during an interactive session.

He said the allocation would include a dollar component equivalent to Tk 608 million.

Bangladesh

withdrew the funding request

from the World Bank earlier this year for this project that aims to connect southern and southwestern districts of the country with the mainland.

The withdrawal came as the incumbent government ran out of patience with the World Bank's ambivalence over whether to fund the project or not apparently following surfacing of corruption charges in it.

China and Malaysia have already come up with concrete proposals to fund the project but Muhith has been maintaining all along that Bangladesh would try doing the project with its 'own resources'.

The Finance Minister shed light on different aspects of the forthcoming budget in the meeting.

He said the government had also allocated Tk 10.05 billion for the Padma project in the revised budget of the current fiscal.

Senior journalist Rahat Khan, Boishakhi television’s Editor-in-Chief and also the Chief Executive Officer Monjurul Ahsan Bulbul, bdnews24.com Editor-in-Chief Toufique Imrose Khalidi, Maasranga Television CEO Syed Fahim Munaem, among others, attended the views exchange meeting.

Amid uncertainty over financing of Bangladesh’s largest infrastructure project to date, the government also considered the Chinese and Malaysian proposals. China forwarded its proposal to the Prime Minister in February.

Malaysia said it would invest $2.3 billion in the project. They plan to recover the amount in 26 years in the form of toll charges. Malaysia will be taking 70 percent of the profit, which is $5.2 billion and Bangladesh will get the remaining 30 percent -- $2.19 billion.

On the other hand, a Chinese consortium led by Sphere Energy Creations Beijing Ltd (SECA) and backed by a government-owned bank, officially proposed to channel interest-free $1.95 billion to bridge the Padma with a payback period of 20 years.

The offer has estimated the cost of Bangladesh’s largest ever infrastructure project at $2.79 billion. According to their proposal, Bangladesh will have to source the rest of the money – roughly 30 percent of the total spending – and appoint a firm to supervise the construction work.

Bangladesh would require repaying $8.15 million a month for 20 years after an agreement is signed for the 6.15-kilometre multipurpose rail-road bridge.

The bridge is estimated to boost the nation’s economic growth by up to one percent a year.

Asked whether the Chinese proposal would be considered, Muhith said, “We are currently going ahead [with plans] to build the Padma bridge with our own funding. We are not thinking about other things now.”

bdnews24.com Editor-in-Chief Toufique Imrose Khalidi said there was not much hullabaloo even though for the metro rail project, JICA promised to provide almost double the World Bank’s promised $1.2-billion loan for the Padma bridge project.

Khalidi insisted the government should start the metro rail project soon.

The Finance Minister agreed with Khalidi with a smile.

“Although the JICA has given more money in the metro rail project, it is less discussed than the World Bank’s financing for the bridge project.”

The minister said the government had already signed an agreement with JICA over the project. “We will start the project as soon as possible.”

Over the slow pace of conversion of the Dhaka-Chittagong Highway to an four-lane one, Khalidi said, “It’s is very important to improve road communications between Dhaka and Chittagong for economic development. But this is really sad that there is not much progress on the conversion work though the scheme started in 2008.”

Muhith said the delay was caused by the problems faced in land acquisition. He said there were a number of mosques and madrasas on both sides of the road, which was slowing down the pace.

He said the pace of process also faced problems as it needed permissions from the Department of Environment.

On the budget for the next fiscal, the minister said the discussion over it had been started earlier this year.

He said he would talk to people representing various sectors of the society before finalising his budget draft.

The Finance Minister declined to comment when asked about the size of the budget, which would also be this government’s last one.

“I can say one thing though that the size [of the forthcoming budget] will not be much bigger than the revised 2012-13 budget,” Muhith said.

He said the next budget would prioritise social security, poverty alleviation, power and fuel sectors, and development of the railway sector.

He said budget for Tangail district would be announced for the first time in the new budget and added that if possible, another district would also get its budget.

Muhith claimed Bangladesh’s power sector saw improvements over the past years and claimed the country would be relieved of power crisis after 2017. He said the government had taken various measures for the development of the sector.

The minister said the government had undertaken a number of large-scale projects apart from those involving small power stations.

Monjurul Ahsan Bulbul said since it was the government’s last budget, it should also reflect as to what extent the government had been successful in fulfilling its electoral pledges or why the people should vote it to power again.

He also observed that the government was showing ‘flexible attitudes’ towards the scam involving the state-owned Sonali Bank.