Manila: The Asian Development Bank (ADB) is providing $198 million,
with an additional $60 million from partner organizations, to fund a partial
upgrade of one of Bangladesh’s most critical regional transport corridors
together with two land ports, giving a shot in the arm to connectivity and
trade across South Asia.
“Upgrading this
important section of the Dhaka-Chittagong-Northwest transport corridor will
give a big lift to both domestic and subregional trade, as well as encouraging
more domestic and foreign investment,” said Juan Miranda, Director General of
ADB’s South Asia Department. “The project is an integral part of the South Asia
Subregional Economic Cooperation (SASEC) program’s push to improve
infrastructure and promote economic cooperation in one of the world’s poorest
and most densely populated areas.”
The SASEC Road
Connectivity Project will expand and improve a 70 kilometer section of the
Dhaka-Northwest corridor ― the second busiest arterial route in the country.
The narrow two-lane
road currently suffers from serious congestion and high accident rates.
Expanding the route to four lanes will help ease bottlenecks, reduce crashes,
and provide the nearly seven million people living in the area with new
business opportunities and better access to markets, schools and other social
services.
The initiative will
also upgrade land ports at Benapole and Burimari, which handle the bulk of
goods transported between Bangladesh and India. These upgrades will boost trade
volumes, improve traffic flows and reduce the loss of perishable goods.
Studies show
upgrading regional transport corridors in Bangladesh will support the movement
of about 18 million tons of freight in Bhutan, India and Nepal, boosting
intra-regional trade across South Asia.
The SASEC program is
an initiative of Bangladesh, Bhutan, India, and Nepal to build closer links
that will spur growth and development across the sub-region. Its work covers
activities in many sectors including transport, trade, energy, the private
sector, tourism and the environment. ADB provides the program with a variety of
support, including project financing, technical assistance, and advice.
As a public-private
partnership initiative, a five-year performance-based contract to maintain the
road will be included in works contracts, which also target up to 50% of the
jobs provided for women. The project also includes a technical assistance grant
of $1.5 million equivalent, financed from the Japan Fund for Poverty Reduction,
to modernize and improve the Roads and Highways Department.
The project will be
carried out over five years with an estimated completion date of December 2017.
The OPEC Fund for International Development and the Abu Dhabi Fund for
Development will each provide cofinancing loans of $30 million.