Dhaka, Bangladesh (BBN)- The Japan International Cooperation Agency (JICA) on Saturday pulled out of the Padma bridge project two days after the government wrote to the World Bank (WB) withdrawing its request for funding.
The JICA was a co-financier of the $2.9 billion project of which the WB was the main financier.
Asian Development Bank (ADB) on Friday pulled out of the project as a co-financier while another co-financier, Islamic Development Bank (IDB), is yet give its decision about the funding.
“As a co-financier, we are unable to continue our commitment under the current framework,” JICA Dhaka office said in a statement.
The JICA’s statement came as the Washington-based development partner said the government had sent to a letter to it withdrawing its earlier request for the revival of the $1.2 billion funding, the World Bank had committed.
“Our policy is to require the highest standard of ethics. Acknowledging the progress of the investigation on the conspiracy of corruption of the project, we support the Government of Bangladesh (GOB)’s firm commitment to anti-corruption, and wish ACC to continue a full and fair investigation into the alleged corruption,” the JICA said.
“JICA continues to commit ourselves to assist development and good governance of the country and to deliver the result to the people through financial and technical cooperation,” it noted.
The JICA also said it is regrettable that they could not find the way to go forward under the current financial framework and our effort did not help to overcome the difficult situations, although we have been intensively consulting with GOB and the other co-financiers after WB canceled the loan last June.
JICA had committed $400 million for the country’s single largest infrastructure project in its history.
BBN/SSR/AD-02Feb13-7:30 pm (BST)