It's official: World Bank is back

Dhaka, Sept 21 The World Bank has officially announced its return to the Padma bridge project where the lead financier is expected to pour in $ 1.2 billion, ending months of frantic negotiations amid uncertainty.
"The Bank has agreed that upon satisfactory implementation of the agreed measures by the government, and with the support of the Bank's governing bodies, the Bank will engage anew in the Padma Multipurpose Bridge," the multinational lending agency said on Thursday night in a statement issued from its headquarters in Washington.
Earlier, Bangladesh's Ambassador to the United States Akramul Qader told bdnews24.com in the evening , "The World Bank has decided to engage itself in Padma bridge project and informed other lending agencies including JICA, ADB about the decision."
Finance Minister AMA Muhith had said before that the World Bank and the government were making 'concessions' to get the project going.
The statement said before cancelling the loan agreement on Jun 29, the bank had previously shared 'credible evidence' of corruption with Bangladesh and asked the government to implement a series of measures for the bank to remain engaged with the project.
Those included sending all public officials suspected of involvement in the alleged corruption on leave until the investigation is completed; appointing a special inquiry and prosecution team within the Anti-Corruption Commission to handle the investigation; agreeing to provide full access to all investigative information to an external panel of internationally recognised experts; and agreeing to new implementation arrangements that gives the bank and co-financiers greater oversight of the project procurement processes.
The government had failed to fulfil the conditions earlier, the statement said.
After the cancellation, the government took actions necessary to fulfil the above measures and has now begun to address the evidence of corruption the bank came up with.
"The World Bank understands that all government employees and officials alleged to have been involved in corrupt acts in connection with the project have been put on leave from government service until an investigation is completed, and that a full and fair investigation is now underway."
The government agreed to a series of measures as a pre-requisite for any renewed implementation.
"These include new procurement arrangements with enhanced oversight, to ensure transparency and clean construction of the bridge; investigations proceeding in a full, fair and expeditious manner; and an independent External Panel to review the government's investigation and report their findings to the government and the World Bank."
The lending agency would remain vigilant to any signs of corruption in the Padma Bridge project, it said.
The government had struck a deal last this year with four international lenders – World Bank, Asian Development Bank, Japan International Cooperation Agency and the Islamic Development Bank – for building the bridge which was one of its major electoral pledges.
A design for the 6-km long two-storied bridge establishing rail and road communications with the southern region was finalised. The government also began taking over land for the $ 2.9 billion bridge.
Things began to go wrong after Canadian engineering firm SNC Lavalin Group was charged by Canadian police with corruption in the bidding process for getting a supervisor for the project. The World Bank last September suspended the loan agreement saying it was taking the charges seriously.
Eventually, the lender scrapped its fund claiming the government did not meet some of its conditions for the money to be available, including sending the officials linked to the alleged corruption and holding powerful positions on leave until the investigation was complete.
As a result, the promised $ 610 million from the Asian Development Bank, $ 400 million Japan International Cooperation Agency and $140 million from Islamic Development Bank also got stuck. However, the ADB and JICA extended their disbursement deadline twice at the government's request.
The government reacted angrily to the decision and refuted the allegations ever since they surfaced. Amidst all these, the Cabinet decided to go ahead with the project with domestic fund leaving out the World Bank. It also continued negotiations with Malaysia for money.
But Muhith continued pursuing the World Bank for reconciliation. .
As part of the process, former Communication Minister Syed Abul Hossain eventually resigned and Bridges Division Secretary Mosharraf Hossain Bhuiyan was sent on leave.
Sources in the government said the Prime Minister's Economic Affairs Advisor Dr Moshiur Rahman, who was the Integrity Advisor of the project, had been sent on leave, but Moshiur denied this.
In the meantime, Prime Minister's International Affairs Advisor Gawher Rizvi went to Washington and held talks with the World Bank officials at its headquarters. The bank's Bangladesh operations head Ellen Goldstein also jointed the discussion there.
There, an understanding was reached on the last of the four World Bank conditions – Moshiur's going on leave – paving way for the return of the lender.
When asked about Moshiur, Finance Minister Muhith said Thursday, "Moshiur Rahman will have no links with any economic matters of the government, including the Padma bridge."
He also observed that the bank's change of heart revived the nation's reputation that the graft allegations had stained.