Padma Bridge bond awaits review today

The proposals on fund mobilisation from internal sources, including releasing Tk 4200 crore bond, for Padma Bridge construction will be placed at the cabinet body meeting today.

Of the estimated cost of around $2.39 billion, development partners have so far pledged $1.17 billion fund for the bridge, the target of which completion is 2013, according to the communications ministry.

The committee on economic affairs will review the three proposals with regard to the bond to meet the fund deficit internally, which include among others offloading shares on the basis of 51:49 public-private partnership.

Another proposal is issuance of bond for a four-year term with a target of collecting Tk 1500 crore in the first year, Tk 1000 crore in the second year, Tk 1000 crore in the third year and Tk 700 crore in the fourth and last year.

The other proposal is to issue a five-year term bond with a goal to collect Tk 500 crore each in first and the fifth years and Tk 1000 crore in each of the second, third and fourth years. The rest Tk 200 crore may be collected through issuing securities on toll collection at Bangabandhu Bridge.

Among the lenders, World Bank pledged $460 million, Asian Development Bank $300 million, Japan International Cooperation Agency (JICA) $ 200 million, Islamic Development Bank $ 130 million, Abu Dhabi Fund $ 31.40 million and JDCF $43.48 million.

The government will provide $631 million through budgetary allocation in the next few years to purchase land for the bridge site. Of this amount, $148 million has already been allocated in a period from fiscal 2008-09 to the current fiscal.

The Daily Star

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