Dhaka, Bangladesh (BBN) – The Asian Development Bank (ADB) and the Bangladesh government on Monday signed loan agreements for $615 million towards construction of the Padma Multipurpose Bridge to help accelerate growth and reduce poverty.
M Musharraf Hossain Bhuiyan, Secretary, Economic Relations Division (ERD) and Thevakumar Kandiah, Country Director of ADB’s Bangladesh Resident Mission, signed the loan agreements on behalf of Bangladesh and ADB respectively, at a ceremony at Sher-e-Bangla Nagar, Dhaka.
A.M.A Muhith, Minister for Finance; Mashiur Rahman, Adviser to the Prime Minister for Economic Affairs; Syed Abul Hossain, Minister for Communications; Xiaoyu Zhao, ADB Vice- President (Operations 1); and S. Hafeez Rahman, Director General of ADB’s South Asia Department, were present.
The 6.1 kilometer Padma Bridge will help transform the lives of 30 million people in southwest Bangladesh by linking the less developed southwest of the country, to northern and eastern regions, while enhancing access to markets and services.
ADB is providing over 21 percent of the total investment cost of nearly $2.92 billion for the bridge. In addition to ADB, the World Bank (WB), the Japan International Cooperation Agency (JICA) and the Islamic Development Bank (IsDB) are also contributing as cofinanciers.
Earlier, ADB provided $27.6 million to prepare the design and engineering documents for the construction of the bridge and approach roads.
The southwest has some of the highest poverty rates in Bangladesh and the absence of a bridge across the Padma River – formed by the confluence of the Ganges and Jamuna rivers – has left it relatively isolated.
Currently, passengers and freight are transported across the five-km wide Padma River on ferries and other smaller vessels, which lack capacity and are frequently suspended during floods, fog and poor weather.
Bridges in other regions, such as the one built with ADB,JICA and WB support across the Jamuna River linking the northwest to the east, have been major growth and poverty reduction drivers for the country. Similar benefits in the southwest region are expected from the Padma Bridge project.
The bridge will consist of a two-level span with a four lane highway on top, and a lower deck carrying a single track railway. Twelve km of approach roads, along with toll plazas and service areas will also be built, while dredging and river bank protection will also be carried out.
The Bangladesh Bridge Authority is the executing agency for the project, which is due for completion in December 2015.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members — 48 from the region. In 2010, ADB approvals, including, cofinancing, totaled $17.51 billion. In addition, ADB’s ongoing Trade Finance Program supported $2.8 billion in trade.
BBN/SSR/AD-06June11-8:40 pm (BST)
