WB Padma bridge fund committed to other projects

Visiting World Bank president Jim Yong Kim on Monday dismissed the possibility of reengagement in the Padma Bridge project saying they would not fund the construction of the bridge at this point.
‘We were talking about the Padma Bridge, but we are not funding in it at this point’, he told reporters after a meeting with finance minister AMA Muhith at the secretariat.
The government of Bangladesh is constructing the bridge on own funding after the Washington-based multilateral lending agency can celled US$ 1.2 billion loan in 2012 citing conspiracies of corruption in the tendering process for the bridge’s construction.
Kim, who arrived in the capital on Sunday, said the bank preferred continuing discussions on finding the bridge project, but Bangladesh government already began works on it.
Muhith said tainted relation between the two sides over funding of the bridge was resolved through the intervention of Kim.
‘Now our relation is very good,’ he said, adding that almost entire fund earmarked for the Padma Bridge by WB was already committed to others projects in Bangladesh.
Muhith hoped that the bank would provide higher amount of concessional loans in the next three years.
Bangladesh received US$ 24 billion loan on less than one per cent interest rate from the WB over the last 45 years.
Bangladesh is the largest recipient of the WB concessional loans meant for the low income countries.
Kim said the bank was now looking aggressively for increasing its 
funding to support Bangladesh’s economic growth that is closing to seven per cent. 
The bank did not have a chance to discuss on more funding in Bangladesh earlier, he said.
He hoped that they would find the ways in the next two days to increase the bank’s funding in Bangladesh.
Earlier, Kim announced that an additional US$ 1 billion fund would be given to Bangladesh for improving childcare in the country.
The fund will be disbursed in the next two years, he said.
The WB president also said they were taking steps to increase the financial assistance for the low income countries. 
He hoped that Bangladesh would be a beneficiary of the steps.
Economic relations division officials attending the meeting said Bangladesh would be eligible for receiving US$ 5 billion from the WB in next three years on less than one per cent interest.
They pointed out that the WB took initiative to raise funds from the money market and give it to the low income countries. 
They said WB might raise US$ 24 billion and 
discussions were now on to give 50 per cent of the amount to be raised to Bangladesh. 

News Courtesy: www.newagebd.net