Bangladesh today signed a Memorandum of Understanding with Malaysia for co-operation in construction of the multipurpose 2.9 billion US dollar Padma Bridge project. Bangladesh's Communication Minister Obaidul Quader and Malaysian special envoy to India and South Asia on infrastructure Dato' Seri S. Samy Vellu signed the memorandum of understanding at a special ceremony in Kuala Lumpur which was witnessed by Malaysian Prime Minister Dato' Sri Mohammed Najib bin Tun Abdul Razak. Following the signing of the agreement, the Malaysian Prime Minister spoke to Bangladesh Prime Minister Sheikh Hasina over telephone during which the two leaders renewed their commitment to work closer for further strengthening of bilateral cooperation. Both the Prime Ministers termed the signing of the MoU as a historic and landmark development in boosting relations between the two countries.

According to the provisions of the MoU titled, "Co-operation on Padma Multipurpose Bridge and other Infrastructure Project" any public or private sector agency, firm or company of Malaysia with the relevant expertise and authority and sufficient experience will arrange, mobilize and invest at least US$ 2.30 billion to construct the 2.9 billion US dollar bridge.The MOU between Bangladesh and Malaysia on the Padma Bridge project has been signed amidst the decision of the World Bank to suspend its loan of US$ 1.2 billion for the 2.9 billion dollar project. The World Bank's decision was taken in October last year amidst the backdrop of allegations of irregularities in the bidding process for the bridge project. Based on its investigations the World Bank has blacklisted a subsidiary unit of the Canada based company SNC Lavalin from bidding for any projects of the organization. However with the World Bank having still not clarified whether it will resume its funding for the project, the Bangladesh government has moved forward in signing an MOU with the Malaysian government for building the bridge through a consortium of companies. The 6.1 kilometre long multipurpose bridge which will be the longest Bridge in Bangladesh when completed, is expected to transform the economy of south west Bangladesh by facilitating multi modal connectivity with the rest of the country.