Padma Bridge Financing
Table of Contents
INTRODUCTION2
BACKGROUND OF THE STUDY3
2.1 Necessity of Padma Bridge3
2.2 About Padma River4
2.3 Project Area5
2.5 Environmental Impact5
2.6 Socio-Economic Impact6
INITIAL FINANCING OPTION OF PADMA BRIDGE7
3.1 Investment and Financing Plans7
3.2 Funding Arrangement8
ALTERNATIVE OPTIONS FOR PADMA BRIDGE FINANCING11
4.1 Fund collection through ADP 12
4.2 Fund Collection through Bond16
4.3 Private Fund Collection18
COST AND BENEFITS ANALYSIS OF DONOR FUND19
COST AND BENEFITS ANALYSIS OF OWN FUND 21
OBSERVATION AND FINDINGS23
Conclusion25
1. INTRODUCTION
The Padma Multipurpose Bridge Project aims to remove the last major physical barrier in the road connection between Dhaka and the Southwest and South Central regions of Bangladesh, home to about one quarter of the Bangladesh population. Currently there is a rather unreliable ferry connection over the Padma River with limited capacity and long waiting times. Ferry services are sometimes interrupted for days during fog and high floods. A number of the ferryboats are obsolete; they are often overloaded and there are frequent accidents, some resulting in considerable loss of life.
The construction of the Padma Bridge will replace the unreliable and unsafe ferry connection with a reliable and safe fixed river crossing. The bridge will shorten the distance from the Southwest to Dhaka by 100 km and travelling time will be considerably reduced. When completed a reliable highway connection will be established between Dhaka and the land port of Benapole, the seaport of Mongla and the district capitals of Khulna and Barisal. The provisions for a railway line on the Padma Bridge will make it possible to construct a new railway connection between Dhaka and the Southwest within the framework of the Trans Asian Railway network. Padma Bridge will also include options for major utility connections to the Southwest including gas, power transmission, and communication lines. The Padma Bridge
INTRODUCTION2
BACKGROUND OF THE STUDY3
2.1 Necessity of Padma Bridge3
2.2 About Padma River4
2.3 Project Area5
2.5 Environmental Impact5
2.6 Socio-Economic Impact6
INITIAL FINANCING OPTION OF PADMA BRIDGE7
3.1 Investment and Financing Plans7
3.2 Funding Arrangement8
ALTERNATIVE OPTIONS FOR PADMA BRIDGE FINANCING11
4.1 Fund collection through ADP 12
4.2 Fund Collection through Bond16
4.3 Private Fund Collection18
COST AND BENEFITS ANALYSIS OF DONOR FUND19
COST AND BENEFITS ANALYSIS OF OWN FUND 21
OBSERVATION AND FINDINGS23
Conclusion25
1. INTRODUCTION
The Padma Multipurpose Bridge Project aims to remove the last major physical barrier in the road connection between Dhaka and the Southwest and South Central regions of Bangladesh, home to about one quarter of the Bangladesh population. Currently there is a rather unreliable ferry connection over the Padma River with limited capacity and long waiting times. Ferry services are sometimes interrupted for days during fog and high floods. A number of the ferryboats are obsolete; they are often overloaded and there are frequent accidents, some resulting in considerable loss of life.
The construction of the Padma Bridge will replace the unreliable and unsafe ferry connection with a reliable and safe fixed river crossing. The bridge will shorten the distance from the Southwest to Dhaka by 100 km and travelling time will be considerably reduced. When completed a reliable highway connection will be established between Dhaka and the land port of Benapole, the seaport of Mongla and the district capitals of Khulna and Barisal. The provisions for a railway line on the Padma Bridge will make it possible to construct a new railway connection between Dhaka and the Southwest within the framework of the Trans Asian Railway network. Padma Bridge will also include options for major utility connections to the Southwest including gas, power transmission, and communication lines. The Padma Bridge
References: 1-An Investigating Report on Padma Bridge (06 February, 2013).Retrieved from the lawyers & jurists website:http://www.lawyersnjurists.com/articles-reports-journals/others-articles-reports journals/investigating-report-padma-bridge/ 2-Project Cost as per RDPP (30 July, 2012).Retrieved from Bangladesh Bridge Authority: http://www.bba.gov.bd/index.php/projects/padma-bridge 3-Padma Bridge Financing. Retrieved from Wikipedia:http://en.wikipedia.org/wiki/Padma_Bridge 4-Confusion about Padma Bridge financing (12 February, 2013). Retrieved from the Financial Express: http://www.thefinancialexpressbd.com/ 5-PADMA BRIDGE FUNDING (4February, 2013). ). Retrieved from the Bangladesh Budget watch: http://bangladeshbudgetwatch.wordpress.com/2009/09/09/padma-bridge-funding-moves-taken-to-raise-tk-60b-from-bonds-surcharge/ 6-Padma Bridge: Dream Vs Reality (6, August, 2012). Retrieved from the Daily Star: http://www.thedailystar.net/forum/2012/August/padma.htm 7-Self financing Padma Bridge (8 August). Retrieved from the Daily Star: http://www.thedailystar.net/forum/2012/August/self.htm 8-Weigh the finances for Padma Bridge (21, September 2012). Retrieved from the New Age: http://newagebd.com/supliment.php?sid=127&id=932 9-Financial Analysis (Padma a multipurpose project) by ADB. (2010). 10-Environmental and Social Impact Assessment (6 September 2010) by Bangladesh Bridge Authority.