After the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA) has also pulled out of the Padma bridge project, two days after the government retracted its request for funding to the World Bank.
“As a co-financier, we are unable to continue our commitment under the current framework. Our policy requires the highest standard of ethics,” said a JICA Bangladesh office media release Saturday.
It said the Bangladesh government informed the JICA of their decision to withdraw the request for funding of the Padma project by the World Bank.
“It is regrettable that they could not find the way to go forward under the current financial framework and our efforts did not help overcome the difficult situations, although we have been intensively consulting with GoB and the other co-financiers after WB cancelled the loan last June.”
The JICA had committed $400 million of the $2.9billion project linking the south-west to northern and eastern regions of Bangladesh.
The World Bank was the major funder with $1.2 billion in loans while the ADB pledged to inject $610 million. Jeddah-based IDB also promised $140 million, while the rest would have come from Bangladesh government.
Dhaka’s decision to withdraw request to the World Bank came after a year-long tussle with the Washington-based lender over suspected corruption in the project.
An investigation is going on by the Anti-Corruption Commission, but an external panel of the Bank earlier said they were not ‘satisfied’ with the process.
The JICA, however, acknowledging the progress of probe into the corruption charge said: “We support GoB’s firm commitment against corruption, and wish ACC to continue a full and fair investigation into the alleged corruption.”
It further said, “JICA continues to commit ourselves to assist development and good governance in the country and to deliver results to the people through financial and technical cooperation.”
The World Bank on April 28, 2011, signed an agreement with the government for the construction of the 6.5-kilometre Padma Multipurpose Bridge project, but cancelled the deal on June 29, 2012, citing corruption concerns.
The Bank, however, announced its engagement anew in the project on Sept 20, 2012 with some conditions.
Finance Minister Abul Maal Abdul Muhith on Friday told bdnews24.com Bangladesh would go ahead with the biggest infrastructure project, “if necessary, with its own resource”.
“The Prime Minister has already said that we will implement the project with our own resource if necessary. We’ll now quickly start working towards that end,” he said.
Muhith, however, said that it would be easier for the government “if ADB, IDB and JICA continue to support us.”
“We will now move quickly. We had pledged in our election manifesto that we would bridge the mighty Padma. We will act accordingly,” he said.
Source: bdnews24.com