Bangladesh snubs World Bank

Bangladesh has told the World Bank that it is formally withdrawing its bid for loans to co-finance the $2.9 billion Padma Bridge project but will pursue the probe into the alleged corruption, the Bank said in a statement.

 

"The Government of Bangladesh yesterday informed the World Bank that it is withdrawing its request of World Bank financing for the Padma Bridge," said the statement released on Friday.

Asked by bdnews24.com on Friday morning, Finance Minister A M A Muhith confirmed the Dhaka decision and reaffirmed the Prime Minister’s statement that Bangladesh would go ahead with the biggest infrastructure project, if necessary, with its own resource.

"The letter to the World Bank confirms the authorities' intent to continue the investigation of alleged corruption related to the project,” the terse, two-paragraph statement from the Bank said.

“The World Bank has taken note of the Government's decision of not seeking renewed World Bank financing for the Padma Bridge, and it encourages the Anti-Corruption Commission to complete a full and fair investigation of the corruption allegations.”

The Bank was to lend a part of the requirement -- US $1.2 billion -- along with the Asian Development Bank, Japan’s JICA and Jeddah-based Islamic Development Bank.

Dhaka’s decision comes after a year-long tussle with the Washington-based Bank over alleged conspiracy to steal the project money, a significant part of which would come from the government’s own sources.

Muhith told bdnews24.com that the government had informed the other lenders too of its decision not to seek the World Bank loan for the project.

“I had told the World Bank earlier, ‘let me know your decision [by January]’. But I didn’t get any response. So [we] wrote letters to the World Bank, ADB and JICA yesterday (Jan 31).”

“We have told the World Bank that we are withdrawing the request to review your decision. We do not need you any more to finance this project,” Muhith told bdnews24.com on Friday morning.

“At the same time, we have requested the ADB, IDB and JICA to stay with us. I am confident they will continue to support us for this project.”

Asked what would be the fate of the project now, the minister said: “The Prime Minister has already said that we will implement the project with our own resource if necessary. We’ll now quickly start working towards that end.”

“It will be easier for us if ADB, IDB and JICA continue to support us as they have been all along,” Muhith said.

“We will now move quickly. We had pledged in our election manifesto that we would bridge the mighty Padma. We will act accordingly.”
Officials say the government decided to continue pursuing the WB fund because of its low interest costs and kept other commercial borrowing options on hold.

 updateallnews