Padma Multipurpose Bridge

The construction of the Padma Bridge has fulfilled the dream of millions of people
in the southern part of Bangladesh. It will have a multiplier effect on the regional
and national economy of the country. The people of 21 districts of the southern
part of Bangladesh will be immensely benefitted in many ways. Thus, the socio-
economic emancipation of tens of thousands of people will be ensured. This book
argues that the construction of the Padma Bridge will remain as a blessing for the
people of Bangladesh in the long term which will play a catalytic role in bringing a
qualitative change in the everyday life of millions of people and to the national
economy. It will remain as a symbol of pride and confidence and an important
milestone in the history of Bangladesh’s progress and prosperity. This book further
argues that the Padma multipurpose bridge will be a game changer not only for
Bangladesh but also for the region of South Asia and beyond. It will remain as a
milestone in the context of regional connectivity, trade, and security. It is also
argued that the bridge has also enhanced Bangladesh’s image and prestige in the
world.

Introduction:
We will soon take initiatives for construction of the Padma
Bridge, a long-cherished desire and dream of the people of the
country’s South-Western region. I already talked to the Japanese
Government regarding this during my visit to the country. Insha-Allah, we will
succeed in construction of the Padma Bridge, too.-
Sheikh Hasina during the inaugural ceremony of Bangabandhu
Bridge on 23 June 1998 at Bhuapur, Tangail. [Original in
Bangla].
The above statement of Sheikh Hasina shows the firm determination and
commitment that she nurtured over the decades to fulfilling the dream of millions
of people in the South-Western part of Bangladesh. Finally, on 25 June 2022, the
dream came true through the inauguration of the Padma Bridge. In fact, the
construction of the Padma Bridge has shown the world that Bangladesh can
accomplish many daunting tasks. The Bridge will contribute to changing the fate of
more than 30 million people in 21 districts of the southern part of Bangladesh. The
implementation of the Bridge will make it easier to establish transport linkages
between this southern part of the country with the capital city and the rest of the

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country. In the words of Bangladesh Prime Minister, Sheikh Hasina, “The people
of the southern region or on the Padma River bank were always neglected. Poverty
is part of our lives. By the grace of Allah, that situation will not exist anymore as we
completed the Padma Bridge facing a huge challenge”.

Through multiplier effects, the Padma Bridge will impact the people of the country
in many ways. It is well-known fact that the development of communication and
transport infrastructure becomes indispensable for the development of any
country. And to expedite the overall political, economic and social development of
Bangladesh, establishing a coordinated and integrated development network
becomes necessary. In this context, the construction of the Padma Bridge will play
a catalytic role in the overall development of the country. In addition, the Bridge will
be imperative in attracting both domestic and foreign investments in this neglected
region and thus will contribute to the overall national economy. It will also contribute
to boost external trade through ports. The Padma Bridge will also enhance the
image and prestige of the country worldwide. Many believe that the construction
of the bridge will be a game changer in Bangladesh’s economy. Foreign diplomats
also defined Padma Bridge as a game changer for Bangladesh. For instance, after
visiting the Padma Bridge in March 2022, the Japanese Ambassador to
Bangladesh, Ito Naoki defined it as “another game changer for the inclusive and
sustainable development”.

Background:
The Padma Bridge has a tumultuous past. The events began working in 2009 after
hiring consultants. The Padma Bridge project has piqued the interest of
development partners and financiers. The World Bank proposed a loan of US$
1000 million, the ADB US$ 500 million, and JICA US$ 300 million. Following
discussions between the bridge division and lenders, the idea for a two-story
bridge similar to one found in Denmark was approved. It was estimated to cost
US$ 2.4 billion (about 16,970 crore taka). On the steel-based infrastructure, a four-
lane road will be erected, and a rail line will be built beneath the bridge. The debt
proposal was finalized by development partners. Papers were signed to distribute
US $1,200 million from the World Bank, US $615 million from the Asian
Development Bank, US $430 million from JICA, and US$ 140 million from the Inter-
American Development Bank. The bridge’s cost was estimated to be US$ 2,972
million, or Tk 20,507 crore, in 2010. The World Bank claimed in 2011 that evidence
of an anticipated corruption scheme had been discovered and that the proposed
loan had been denied.

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The bridge’s construction was halted in October 2011 when the project’s principal
funder, WB, froze payments. The other lenders were quick to follow suit. On
September 21, 2011, the WB presented the first report to Finance Minister AMA
Muhith. According to the report, project director Rafiqul Islam was suspended on
October 9 and former Bridges Division secretary Mosharraf Hossain Bhuiyan was
transferred on October 13. On October 18, the ACC established an inquiry
committee. On the request of the WB, Canadian police began an inquiry into the
allegation. The RCMP searched SNC-Lavalin International Inc.’s Oakville office in
the fall of 2011 since this was the primary firm selected for the construction. The
ACC charged seven people, including Mosharraf Hossain Bhuiyan, with
“conspiracy for corruption in the Padma Bridge project” on December 17, 2012 on
the request of the World Bank. Former Communications Minister Syed Abul
Hossain and former State Minister Abul Hasan Chowdhury were named as
suspects by the ACC. SNC was served a 10-year ban in 2013 that prevented it
from bidding on any World Bank-financed development projects.
Meanwhile, the World Bank filed a complaint with the Royal Canadian Mounted
Police against SNC-Lavalin, a Canadian business firm. Following that, a lawsuit
was brought in Canada. The debt deal for Padma Bridge was canceled on June
28, 2012, by World Bank President Robert Zoellick. Then came the return of other
debt collectors and benefactors. Due to the World Bank's delay, Prime Minister
Sheikh Hasina rejected the loan on January 31, 2013, and announced that the
Padma Bridge would be built with Bangladesh’s own funding. This was a historic
move. In 2015, construction on the Padma Bridge began. The Padma Bridge's first
span was reached to place in 2016 and completed in 2017. On December 10,
2020, the final span was established.
However, if one looks historically, from May to October 1999, the Padma Bridge
project underwent its first pre-feasibility study. Padma bridge's pre-feasibility
research was carried out with local funds. On July 4, 2001, Prime Minister Sheikh
Hasina laid the foundation stone. On January 11, 2011, the project's anticipated
cost was estimated at Tk. 20,507 crores and the Donor-GoB ratio was modified to
79:21. In early 2011, the GoB signed financing agreements totaling US$2.3 billion
with four development partners (DP). On June 17, 2014, a significant step forward
in the building process was made with the selection of a construction contractor,
China Major Bridge Engineering Company Ltd. The Canadian police
were chastised by Justice Ian Nordheimer, who said: “Reduced to its essentials,
the information provided in the [wiretap applications] was nothing more than
speculation, gossip, and rumor.”.

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Economic Importance:
FDI and Internal Investment
Bangladesh's economic progress is symbolized by the bridge. The ability to build
a structure of this size reflects a country's economic strength and stability. It is, in
reality, the symbol of Bangladesh's new economic period. Because the long-term
impacts of economic policies will be seen over a period of time, economic activities
are performed or presented with structures. But, for the time being, this is proof of
the country's progress. This could be beneficial for attracting FDI from various parts
of the world. Besides, the improved transportation facility and internal investments
will also be on the surge.

Development in the Agricultural Sector

The southern part of the country lags behind the rest of the country. This region
produces agricultural items, but due to communication issues, the impoverished
farmer is unable to receive a fair price for their produce. This problem will be
resolved by the Padma Bridge. As a result, the Padma Bridge will play a role in
changing the fate of farmers in the southern region, resulting in increased
production. In addition, new industries will be set up around the bridge, which will
help keep the sector moving.All types of agricultural products will be able to move
quickly to the desired market and thus be sold not only in Dhaka but also in the
major cities. Khulna, Bagerhat, Jessore, Satkhira, Narail, Kushtia, Meherpur,
Chuadanga, Jhenaidah, and Magura in the Khulna division are projected to benefit
directly from the Padma Bridge. In the Barisal division, Barisal, Pirojpur, Bhola,
Patuakhali, Barguna, and Jhalkathi, while in the Dhaka division, Gopalganj,
Faridpur, Madaripur, Shariatpur, and Rajbari will get benefitted from agricultural
products smooth movement. The entire southwestern region’s agricultural
economy relies on the fish of Khulna and Bagerhat, the vegetables and flowers of
Jessore, and the rice of Barisal.
Jessore's Gadkhali flowers are exported to major cities, including Dhaka, as well
as to other countries. Again, the Jessore region supplies a substantial portion of
the country's vegetable market. The ports of Mongla in Khulna and Payra in
Patuakhali are open for business. As a result, heavy industries will emerge in the
future.
Tourism
The south has a plethora of tourist attractions that appeal to adventurers. Due to
the absence of transportation in the region, many tourist spots such as the
Sundarbans, Kuakata, and Shatgambuj Mosque (Masjid) did not receive enough

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attention from the tourists. It will now be accessible via the Padma Bridge. The
state will be able to make a handful of revenue by improving the infrastructure of
these tourist destinations.

Employment Opportunities
The Mongla Special Economic Zone, Mongla EPZ, Payra Port, and Rooppur
developments will be completed soon, these projects will create a many job.
According to research, the Padma Bridge will employ around 1.2 percent of
Bangladesh's total labor force annually after it is completed. To put it another way,
in the next five years, around one million individuals, or two lakh people every year,
will have new job prospects. That number will triple in ten years.Poverty Reduction
Southwest accounted for 27 percent of the country’s area and a home to nearly a
quarter of its [Bangladesh’s] people. Because of remoteness and climate change,
the poverty rate in the region is 5 percent greater than the national average. If the
bridge enhances the region's communication and investment environment, the
region's poverty rate will drop by 1.01 percent every year. As a result, poverty will
drop by 0.84 percent across the country. According to BCIC, 500 to 1,000 new
industries will be established in the Barisal division alone during the next five years.

Funding the Bridge:

Padma Multipurpose Bridge is a multi-billion USD development project, costing an
estimated US$3.6 billion. It has faced numerous challenges. The financial burden,
on the other hand, was the most significant. In absence of external financing, the
government has built the Padma Bridge with domestic finances. The late Finance
Minister told parliament on February 4, 2013, that the current design would be
preserved. The minister assured the members of the Parliament that the
government would have to come up with the money in four years. His strategy was
to initially focus on obtaining US$1.8 billion in foreign cash from his own resources.
Furthermore, the bridge’s budgetary allocation needed to be dramatically adjusted
in the next three years.
Bangladesh’s export and remittance revenues were rising at the time when the
World Bank’s proposal was denied. The volume of foreign exchange reserves was
increasing on the one hand by leaps and bounds. The banking sector of
Bangladesh was able to provide this amount in foreign currency. This amount of
money cannot be spent in a single year. Bangladesh Bank can supply cash if the
government can provide money. Bangladesh Bank was able to provide US$1.4
billion for the Padma Bridge. There has been no stress in the foreign exchange
market as a result of this. Foreign exchange reserves, on the other hand, had

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increased. The Annual Development Program (ADP) received funding from the
government. The dollar was provided by the Agrani Bank. Bangladesh Bank
promised to provide the extra dollar to the Agrani Bank at any moment if it was
required.

Leading the National Economic Development of Bangladesh:

The quality of a country’s infrastructure determines its economic development and
competitiveness. The gross domestic product (GDP), employment, trade, and
human capital all have an impact on this. There are many evidences that
production and infrastructure are mutually beneficial. Bangladesh is a riverine
country, and the river serves as the primary mode of public transit and trade. In
terms of impacting the economy and GDP of the country, the Padma is one of the
most significant rivers. Recognizing this, Bangladesh has completed the
construction of the Padma Multipurpose Bridge over the Padma River, as well as
supporting infrastructure, all of which are essential for Bangladesh’s long-term
prosperity. This effort has far-reaching impacts on the whole country and
contributes to Bangladesh’s Southwest region’s socio-economic and industrial
growth. Furthermore, economic activities and sectors are intertwined, the
immediate consequences of the Padma Bridge for individual industries and
markets are likely to trigger a chain reaction of economic upheaval. The Padma
Multipurpose Bridge is the 122nd longest in the world. The 6.15-kilometer bridge
started construction in 2014, and it is scheduled to open to traffic on June 25, 2022.

Boosting the Regional Connectivity:

Connectivity has become a buzzword in the twenty-first century. It comprises not
only physical connectivity but also focuses on creating a good people-to-people
connection. Moreover, digital connectivity has become an integral part of
connectivity due to the improvement in the information and communication
technology (ICT) sector and not to mention the easy access to the internet.
Countries are investing so much time and money to improve both their internal and
external connectivity by taking different infrastructure development initiatives.
South Asia as a region has not been able to develop a good connectivity framework
among the seven South Asian countries. It is the least interconnected region in the
world. So, it is not surprising that the cost of trade between South Asian countries
is more than the cost of when a South Asian country trades with countries in Latin
America. This has hampered the overall regional development of South Asia. But
there is a ray of hope as countries are now coming together to overcome the hurdle
by taking unilateral, bilateral, and multilateral development initiatives to improve
the regional connectivity. We can clearly see that in terms of the Padma bridge
which is a unilateral initiative of Bangladesh. The bridge will not only enhance the

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internal connectivity of Bangladesh but also help improve the regional connectivity
of South Asia through its road and rail connectivity. The Bangladesh government
has set an example for other countries in South Asia by constructing the bridge
with its own money which will no doubt encourage other countries to come forward
in order to develop good regional connectivity by taking more projects like this.

Realizing Bangladesh's Vision 2041:

Bangladesh under the leadership of Sheikh Hasina moves ahead through vision
and planned actions in every sector. Vision 2041, which is an extension of vision
2021, has been enfolded by the government of Bangladesh and aims to carry the
country on the trajectory of development, as Bangabandhu dreamt of remolding
Bangladesh into Sonar Bangla (Golden Bengal). The government of Bangladesh
has already initiated the 2021-2041 Perspective Plan (PP2041). On February 5,
2014, the Prime Minister of Bangladesh, Sheikh Hasina, declared in the national
parliament that her government would revise its Vision 2021 as Vision 2041 by
updating several goals so that by the year 2041, Bangladesh can become a
“prosperous and developed place after crossing the status of a middle-income
country”. The mega projects in Bangladesh are contemplated to change
Bangladesh significantly. Of them, the Padma Bridge will have a great impact on
the future as well as the vision of 2041. It is not just a megaproject, but the Padma
Bridge is the symbol of Bangladesh’s courage and capacity, and it can be regarded
as the one step forward towards a developed Bangladesh.

Conclusions:
The construction of Padma Bridge by own funding has boosted Bangladesh’s
international image and prestige. It is now a source of national pride and
confidence. The inauguration of the Padma Bridge has fulfilled the dreams and
aspirations of millions of people in the country. It will work as a milestone towards
achieving economic emancipation. In fact, from an “international basket case”,
Bangladesh can now fund and construct one of the largest Bridges in the world
which might inspire other developing countries. It will not be wrong to claim that
Bangladesh will always be a wonder to the world. The founding father of the nation,
Bangabandhu Sheikh Mujibur Rahman literally started to rebuild the nation from
ashes and he successfully did it. This is the inspiration that the current Prime
Minister of Bangladesh, Sheikh Hasina received from her father which took
Bangladesh to a new height.

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The Padma Bridge connects 21 districts of the southern Bangladesh with the
capital city and the rest of the country. People and trucks will not have to wait longer
time like earlier to cross the mighty Padma River. Thus, the sufferings of the people
to cross the Padma River will be removed. The entire southern part of Bangladesh
will be benefitted socio-economically due to the connectivity facilitated by the
Bridge. In addition, employment generation through domestic and foreign
investment due to the seamless connectivity facilitated by the Padma Bridge will
contribute to poverty reduction. The Padma Bridge will create abundant
possibilities for the people of southern part of Bangladesh. Consequently, socio-
economic indicators are also expected to improve. In fact, this working paper
argues that there will be a multiplier effect of the Padma Bridge on the entire nation.
This bridge will remain as a critical milestone in the history of economic and social
prosperity of the country. In addition, the seamless transport connectivity will be
imperative to increase Bangladesh’s international trade volume with the
neighboring countries.
The bottom-line is that after 50 years of its independence, through the construction
of the Padma Bridge by domestic sources, Bangladesh has shown the world the
economic revival of the country on the one hand. On the other hand, it is also
revealed that people is the referent object of development in Bangladesh. In fact,
for a developing country like Bangladesh, funding mega-development projects
without the support of World Bank, IMF, ADB, JICA or any other development
partner, is not an easy task. By successfully completing the construction work of
Padma multi-purpose bridge, Bangladesh has become a source of inspiration to
many developing countries. The image of a ‘New Bangladesh’ has been created.
From an “international basket case”, Bangladesh is now a development miracle.
The construction of the Padma Bridge will make the world amazed.

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