Bridge Authority repays 3rd and 4th installments of loan taken for Padma Bridge construction

Bangladesh Bridge Authority has repaid the 3rd and 4th installments of the loan taken for Padma Bridge, the country's largest infrastructure project built with its own funding.

In the presence of Prime Minister Sheikh Hasina, Secretary of the Bridge Division and Executive Director of Bangladesh Bridge Authority Md Manjur Hossain formally paid Tk316,02,69,093 to the senior secretary of the Finance Division at 10am on Monday.

Road Transport and Bridges Minister Obaidul Quader, members of the Cabinet, cabinet secretary, prime minister's principal secretary, senior secretaries/secretaries and journalists from electronic and print media were present during the event.

The Government of Bangladesh self-funded the construction of the Padma Bridge and a total of Tk32,605.52 crore was spent on it.

Almost the entire amount of the construction cost was given as a loan to the Bangladesh Bridge Authority by the Finance Division.

On 26 July 2022, Bangladesh Bridge Authority signed a revised loan agreement with the government's finance division, according to which the loan will be paid in 35 years at a 1% interest rate. According to the loan repayment schedule, the interest will be paid in four installments every fiscal year, totalling 140 installments.

Besides, for the detailed design of the bridge, a total of Tk1,74,53,000 Special Drawing Right (SDR) loan has been taken from the Asian Development Bank for a period of 15 years, under two loan agreements, at 2% interest.

A total of Tk28,099,330 SDR, including interest and principal, will be paid in four installments in a year in 60 installments. Note that as of 5 April 2023, a total of Tk3,169,097,050 has been paid for the 1st and 2nd installments. A total of Tk63,293,366,142 was disbursed in the first year.

Following the agreement, the debt repayment of the bridge has started from the fiscal year 2022-23 and the Bangladesh Bridge Authority will get time till the fiscal year 2056-57 to repay the debt.

It is to be noted that since the inauguration of the bridge on 25 June 2022 till 18 June 2023, a total of Tk7,797,587,000 has been collected as toll.