FHM Huamyan Kabir

The Japan International Cooperation Agency (JICA)'s US$ 400 million loan effectuation deadline for the Padma Bridge project will expire tomorrow amid confusion over funding the World Bank, officials said Wednesday.

Ministry of Finance (MoF) officials said the JICA would activate its loan for Bangladesh's multi-billion-dollar Padma Bridge project only after getting green signal from the World Bank (WB).

"Since we do not know the outcome of the discussion at Washington between the Bangladesh delegation and World Bank officials, what will be the fate of the JICA loan is not clear yet," a senior MoF official told the FE.

"We have not yet requested JICA to extend the loan activation deadline further as we are waiting for news from Washington," he said adding they were hopeful of getting information from the global lender by today (Thursday).

The Prime Minister's International Affairs Adviser Gowher Rizvi is now in Washington to discuss with the global lender WB the issue of reviving its cancelled US$ 1.20 billion loan for the Padma Bridge.

Economic Relations Division (ERD) officials said they were yet to get any news from Washington or from the World Bank.

Earlier, JICA on August 31 extended its deadline for the fifth time offering Bangladesh government space to fulfil the WB's anti-graft measures for reviving the scrapped loan.

The US$ 615 million loan of another major co-financier Asian Development Bank (ADB) is still alive as it has extended the deadline for one month till September 30.

ERD officials said if the committed $400 million JICA loan is not activated by the stipulated deadline September 21 (Friday), it will stand scrapped automatically.

Last time, ADB and JICA have extended their loan activation deadlines asking the government to comply with the WB's conditions for receiving the scrapped loan.

"We still have another two days. We are hopeful of getting good news from the WB by tomorrow," a senior ERD official told the FE Wednesday.

He said since the PM's adviser Gowher Rizvi would inform the WB officials about the leave from office by 'accused' Dr Mashiur Rahman, the PM's Economic Adviser, we are hopeful of getting green signal from the global lender.

Government officials said that Dr Mashiur Rahman has applied for one month's leave to pave the way for reviving WB's $1.20 billion scarpped loan.

Meanwhile, Dr Mashiur Rahman Tuesday denied to clear his position about the leave petition.

The World Bank on June 29 scrapped its $1.20 billion loan for the $2.9 billion's worth Padma Bridge project alleging 'corruption conspiracy' in the bidding process of the project.

The Washington-based lender has also set four conditions for receiving its cancelled loan.

News: The Daily Financial Express/Bangladesh/20-Sep-12