Padma Bridge / SNC-Lavalin corruption case
Risk Mechanism
A high-level bribery scheme involving public officials, company executives, and private intermediaries compromised approval-stage integrity and undermined lender confidence before implementation. The resulting withdrawal of external finance forced a change in the project’s funding structure.
Case Summary
The World Bank stated that it had credible evidence of a high-level corruption conspiracy involving Bangladeshi officials, SNC-Lavalin executives, and private intermediaries in connection with the Padma Bridge Project. After the government did not take the corrective actions sought by lenders, the Bank cancelled its $1.2 billion credit, disrupting the original financing plan and requiring a different funding structure.
Risk Lesson
This case shows how corruption concerns during appraisal and planning can undermine lender confidence before implementation and trigger the withdrawal of external finance. It also highlights warning signs such as senior-level involvement, intermediary-driven influence over approvals, weak corrective action in response to lender concerns, and approval-stage governance failures that ultimately altered the project’s funding structure.
Reference
External Panel of Experts. (2013). Final report of the External Panel of Experts: Re: The Padma Multipurpose Bridge Project. Available from: https://archive.thedailystar.net/beta2/wp-content/uploads/2013/06/Padma_Bridge_External_Expert_Panel_Final_Report.pdf