Padma Bridge Project
Padma Bridge is possible to build without World Bank MGT372.7
Prepared For: Shahid Hossain (ShH) North South University |
Prepared by: Name ID |
Date of submission: 4th April, 2013
EXECUTIVE SUMMARY
Padma Bridge is a long cherished dream for people of Bangladesh particularly for the southern part of this country. But recent incident with World Bank creates a belief in the mind of people that Padma Bridge is not possible to build without World Bank. But through our whole research we tried to show how Padma Bridge can be build without World Bank. The main potential source for building Padma Bridge is China. Proposal of China is really attractive comparing to other’s sources. A Chinese consortium, backed by a government-owned bank, has officially proposed to channel $1.95 billion to bridge the Padma without interest and a payback period of 20 years. Government of Bangladesh is seriously observing this proposal. As China has a huge experience to build longer bridge than Padma Bridge. Costing is also reasonable. Another positive thing is that China will not change the design which was done previously. Second option is Malaysia. They offered to invest US$2.3 billion to build the US$2.9 billion Padma Bridge. They would take back the return within 26 years on the toll collected from the bridge. Malaysia would receive 70 percent and Bangladesh government 30 percent of profit. There are many local sources by which padma bridge finance is possible. We estimated that 98825 cores taka is possible to gather from local sources such as reserve of foreign currency, National bank, pension fund, surcharge, insurance company, IPO, donation, more taxes on luxurious goods etc , although government has others
Prepared For: Shahid Hossain (ShH) North South University |
Prepared by: Name ID |
Date of submission: 4th April, 2013
EXECUTIVE SUMMARY
Padma Bridge is a long cherished dream for people of Bangladesh particularly for the southern part of this country. But recent incident with World Bank creates a belief in the mind of people that Padma Bridge is not possible to build without World Bank. But through our whole research we tried to show how Padma Bridge can be build without World Bank. The main potential source for building Padma Bridge is China. Proposal of China is really attractive comparing to other’s sources. A Chinese consortium, backed by a government-owned bank, has officially proposed to channel $1.95 billion to bridge the Padma without interest and a payback period of 20 years. Government of Bangladesh is seriously observing this proposal. As China has a huge experience to build longer bridge than Padma Bridge. Costing is also reasonable. Another positive thing is that China will not change the design which was done previously. Second option is Malaysia. They offered to invest US$2.3 billion to build the US$2.9 billion Padma Bridge. They would take back the return within 26 years on the toll collected from the bridge. Malaysia would receive 70 percent and Bangladesh government 30 percent of profit. There are many local sources by which padma bridge finance is possible. We estimated that 98825 cores taka is possible to gather from local sources such as reserve of foreign currency, National bank, pension fund, surcharge, insurance company, IPO, donation, more taxes on luxurious goods etc , although government has others
Bibliography: 1. China offers $1.95b to build Padma Bridge (2013, 12th March), The Financial Express, PP.1, Vol: 20. Retrieved from http://www.thefinancialexpress-bd.com/index.php?ref=MjBfMDNfMjJfMTNfMV8xXzE2NDA1NA== 2 3. Govt plans Tk 5,000cr allocation a yr for Padma (2013, 6th March), The Daily Prime News. Retrieved from http://www.dailyprimenews.com/print.php?id=7265 4 5. Harmachi, A. R (2013, 21th march), Chinese offer $1.95bn plan to bridge Padma, bdnews24.com. retrieved from http://d30fl32nd2baj9.cloudfront.net/media/2013/03/21/chinese-offer-1.95bn-plan-to-bridge-padma 6 7. Make padma bridge (2013, 19th February), Retrieved from http://make-a-padma-bridge.blogspot.com/2013/02/make-padma-bridge.html 8 13. Sovereign bonds on way to start off Padma bridge (2013, 1st April), The Daily Star. Retrieved from http://www.thedailystar.net/beta2/news/sovereign-bonds-on-way-to-start-off-padma-bridge/ 14