Padma Bridge
Munima Sultana
The government is going to sign the last part of its credit deal of US$ 615 million with Asian Development Bank (ADB) today (Monday) for the country’s mega Padma Multipurpose Bridge Project.

With the ADB credit signing, the government will complete all formalities for a total of $ 2.40 billion funding from lending agencies for the construction of the 6.15-kilometre Padma Bridge, to be the country’s largest and world’s third largest bridge.

The Economic Relations Division earlier signed agreements with World Bank for $ 1.2 billion on April 28, with Japan International Cooperation Agency for $ 415 million on May 18 and with Islamic Development Bank for $ 140 million on May 24.

“We consider signing of the loan agreements for the Padma Bridge a great achievement of the people of the country as it is with their support that we have reached this stage,” Communication Minister Syed Abul Hossain told the FE on the eve of signing the last credit deal.

He said with the guidance of the Prime Minister, the communications ministry has earned success in ensuring finance for the $ 2.9 billion Padma Bridge project within two and a half years.

The Padma Multipurpose Bridge Project was the first project on which the present government took initiative soon after assuming power.

Meanwhile, ADB Vice-President Xiaoyu Zhao and Director General of ADB’s South Asia Department S Hafeez Rahman arrived in the country Sunday to witness the occasion to be held at the NEC conference room.

Finance Minister AMA Muhith and Economic Adviser to the Prime Minister Dr Moshiur Rahman will be present on the occasion.

The board of the Manila-based Asia-Pacific anti-poverty lender approved $ 615 million credit for the Padma Bridge construction project in November last. Of the ADB loan, $ 539 million credit will be mobilised from its hard-term lending wing – Ordinary Capital Resources (OCR), with a maturity period of 27 years, and a 7-year grace period. Its annual interest rate has been determined in accordance with ADB’s LIBOR (London Inter-Bank Offered Rate)-based lending facility.

Another $ 76 million loan from the lender’s concessionary wing – Asian Development Fund (ADF) – will be released providing 32-year repayment period, with an 8-year grace period carrying an annual interest of 1.0 per cent which will rise to 1.5 per cent for the rest of the term.

thefinancialexpress