Officials say the World Bank wanted certain conditions to be met before it could revive the loan, including the removal of some Bangladeshi officials linked with the project.
Speaking at a meeting the council's Conservative leader Stephen Parnaby said the work would still go ahead but they would "re-phase the scheme", with the removal of the cobbles left until the end of the project, "to allow further discussions with stakeholders to take place".
Perhaps a project they could all work together on is the removal of the thousands of "Yes On 8" and "No On 8" signs that are stuck into lawns of California neighborhoods.