Loan agreement signing today

The government signs US $ 1.2 billion loan agreement with the World Bank today (Thursday) for mega Padma multipurpose bridge project aiming at improving the country’s connectivity with economically backward southwest region.

The world’s third largest 6.15 kilometre-long Padma bridge will be constructed at Mawa and Jajira points connecting nearly 30 million people in the southwest region with the rest of the country.

The first and the highest loan agreement ceremony of the multi donor Padma bridge project will be held at a ferry “Badsha Shaheed Barkat at the Mawa point of Munshiganj district.

Economic Relations Department Secretary Mosharraf Hossain Bhuiyan and World Bank (WB) Country Director Ellen Goldstein will sign the loan deal on behalf of Bangladesh government and Washington-based multi lateral agency.

Officials said a project agreement will also be signed between Bangladesh Bridge Authority, the executing agency of the $ 2.9 billion project, and WB to finalise terms of conditions of the project on the same occasion.

Finance Minister Abul Mal Abdul Muhith, Planning Minister AK Khandaker, Communications Minister Syed Abul Hossain and visiting World Bank Managing Director N’ Gozi Okonjo Iweala will witness the gala event.

The World Bank approved US$ 1.2 billion concessional credit from its International Development Association (IDA) to Bangladesh for Padma Multipurpose Bridge Project on February 24.

The IDA loan will have 40-year maturity, including a 10-year grace period and a service charge of 0.75 per cent.