The situation has worsened to such an extent that Bangladesh is no longer asking for World Bank (WB) help to build the proposed $2.9 billion new bridge over the river Padma. Construction of the bridge would greatly strengthen communication and improve infrastructure between Dhaka and the Western areas of Bangladesh. With other funders like the ADB and the JICA also withdrawing, Bangladesh has approached India, China and Malaysia to help build the bridge, according to Dhaka-based media.

The WB was supposed to provide $1.2 billion, the Asian Development Bank $610 million, the JICA of Japan $400 million and the Islamic Development Bank, Jeddah, $140 million for the project. However, some time ago, WB authorities announced their pullout, following allegations of bribery in Bangladesh by a Canadian firm. Bangladesh appointed an inquiry commission to carry out a probe, but it also was accused of not doing its work properly! Despite such setbacks, Bangladesh managed to revive the project after agreeing to certain conditions, with WB help.

The ADB too, has been lately stressing the need to upgrade and strengthen the existing transport and logistical infrastructure in South Asia as a whole, which lags badly behind East Asia. This affects the general economic prospects of the region as a whole. The new bridge over the Padma would be a major step in the overall upgradation planned officially.

This time however, it is Bangladesh, which has informed the WB not to proceed with the loan, while indicating that the investigation into the alleged corruption would continue. Dhaka was withdrawing its earlier request for WB help. No specific reason for the Bangladeshi decision was given in the Dhaka-based media. However, there was a feeling in some quarters that some of the new conditions were not to Dhaka’s liking. There were indications that the country initially felt that other helping banks and agencies, like the ADB, would not opt out of the project.

But shortly afterwards, the ADB and the JICA too announced plans not to proceed with their loans.

The Prime Minister as well as other Ministers had indicated earlier that they had alternatives, as some countries were interested in participating in the construction of the bridge. Bangladesh had also signed a memorandum of understanding with Malaysia in this regard.

Mrs Hasina had also hinted that if necessary, Bangladesh would go ahead and build the bridge out of its own resources. Citizens had been asked to contribute whatever they could into two bank accounts opened for the purpose.

Now Minister for Communication Mr Obaidur Quader has indicated that India and China were also interested in the project apart from Malaysia. He expected to finalise arrangements within a month.

In case the project is carried out with help from major regional powers, and not the WB, etc, it would mark a new chapter in the overall economic development of South Asia as a whole.

According to observers, Ms Hasina’s problems with some Western countries, especially the US, had started with her spat with Nobel laureate Microfinance expert Dr Mohammed Yunus, over the control of the Grameen bank. The US and most European countries as well as international financial institutions, had announced their sympathy and support for Dr Yunus in clear, unambiguous terms.

Ms Hasina however saw such moves as an attempt to browbeat her politically on her home turf and did not relent. The present developments should be viewed against this backdrop of acrimony, the observers feel. (IPA Service)