World Bank cancel US$1.2bn Padma Bridge loan

A loan worth US$1.20billion for the Padma Multipurpose Bridge project has been cancelled by the World Bank (WB). The decision was said to have been taken as the Bank was not satisfied with the actions taken by the Bangladeshi government in regards to corruption allegations involving the bridge contract. A major engineering and construction company is alleged to have made improper payments to Bangladeshi government officials in order to secure the bridge contract. The World Bank loan, signed In April last y
July 6, 2012 Read time: 2 mins
RSSA loan worth US$1.20billion for the Padma Multipurpose Bridge project has been cancelled by the 2332 World Bank (WB).

The decision was said to have been taken as the Bank was not satisfied with the actions taken by the 1043 Bangladeshi Government in regards to corruption allegations involving the bridge contract. A major engineering and construction company is alleged to have made improper payments to Bangladeshi government officials in order to secure the bridge contract.

The World Bank loan, signed In April last year, was part of a funding package for construction of the US$2.9 billion bridge which, on completion, would have been be the country's longest.

Funding also was expected from the 943 Asian Development Bank, the 2416 Japan International Cooperation Agency and the 2417 Islamic Development Bank.

The bridge was intended to link the country's underdeveloped southwestern districts with Dhaka, the capital, benefiting 30 million people and boosting Bangladesh's economy by 1.2%, according to a forecast by the Asian Development Bank.
The World Bank first brought the corruption allegations in October last year.

Western world companies face tight legislation with regard to alleged improper payments, making the practice largely eradicated.

Related Content

  • US$683 million Bangladesh highway upgrade
    September 9, 2024
    US$683 million is being targeted for a key Bangladesh highway upgrade project.
    Read More
  • New bridge to connect Sri Lanka capital
    September 2, 2015
    Sri Lanka plans to construct a new bridge that will improve transport connections to capital Colombo. The six lane bridge will span the Kelani River. It will be built parallel to the existing Kelani Bridge (Japan Friendship Bridge) and help cut congestion on this important travel route. The project is expected to cost US$335.6 million. The bridge will feature an elevated approach road and the project also includes the construction of interchanges linking the Colombo-Katunayake Expressway (CKE), Baseline Roa
    Read More
  • Papua New Guinea is set for extensive road bridge work upgrades
    January 21, 2015
    Papua New Guinea is set to start road and bridge upgrades that could cost upwards of US$576 million. Work on bridges will be paid partly through agreements with the Australian Department of Foreign Affairs, amounting to around US$53 million, and the Asian Development Bank which is putting in nearly $32 million. The Australian Department of Foreign Affairs has also earmarked $101 million to upgrade of arterial roads to standard concrete in the port city of Lae, the capital of Morobe Province. Lae, the
    Read More
  • Corridor 10 project in Serbia may be delayed
    April 2, 2013
    A series of challenges are now facing the project to construct Serbia’s key Corridor 10 highway. The EU has asked the Serbian Government for details of the priority plan and deadlines for the completion of the Corridor 10 highway. At present three sections of Corridor 10 are at risk, due to delays and financing issues. These are the Ciflik-Pirot stretch, the Bancarevo tunnel and the Vladicin Han section. According to Serbian roads company Koridori Srbije, the construction schedule will be set by the end of
    Read More

Highlighted Content