World Bank Suspends Loan to Bangladesh

Posted October 10th, 2011 at 11:05 am (UTC-5)
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The World Bank has suspended a $1.2 billion loan to Bangladesh for a bridge while the government investigates alleged corruption in the bidding process.

Bangladesh Finance Minister A.M.A Muhith said Monday the bank had “temporarily halted” funding.

The money was to be used to build the country’s longest river bridge, connecting the country’s northwest to the capital Dhaka and Chittagong port. Construction of the $2.9 billion bridge over the Padma River was expected to begin before the end of this year.

The 6.15-kilometer bridge, designed to carry a highway and rail line, is expected to transform the country’s isolated south.