Dhaka, Bangladesh (BBN)- Asian Development Bank (ADB), a co-financer of the Padma bridge project, in a statement said on Monday it will be unable to release fund for the project due to joint nature of co-financing.
“ADB understands and respects the reasons that have led the World Bank (WB) to its decision. ADB and the World Bank follow similar policies, rules and procedures on governance and fiduciary oversight,” the ADB said in the statement.
On Friday, the WB decided to cancel its US$1.2 billion soft loan in support of the Padma Multipurpose Bridge project, effective immediately.
However, given the importance of the project to the country and the region, the ADB also deeply regrets that both parties were unable to reach a workable agreement to move the operation forward, it added.
The ADB also termed Padma as a landmark project for Bangladesh and the region and said, “The World Bank is the lead financier and arranger, working alongside the Asian Development Bank, Japan International Cooperation Agency and Islamic Development Bank.”
ADB has a longstanding relationship with the government of Bangladesh and its people and reiterates its commitment to their long term development needs, the statement added.
Under the credit assistance agreement ADB was confirmed to provide $ 615 million for construction of the Padma Bridge.
In a related development, Japan International Cooperation Agency (JICA), a co-financer of Padma Multipurpose Bridge Project, on Monday said it would take a decision on its involvement in the project after consultation with the Japanese government on funding deal.
The JICA was committed to funding $400 million for the Padma bridge project.
BBN/SSR/AD-02July12-5:46 pm (BST)
