The government has undertaken a project for the up-gradation of land ports, custom houses and bordering highways between Bangladesh and India to boost regional connectivity.
According to an estimation, some $900 million will be required to implement the Bangladesh, Bhutan, India, Nepal (BBIN): Regional Transport and Trade Facilitation Program - Bangladesh Phase-1 Project. The World Bank is keen to invest $750 million.
A virtual wrap-up meeting was held on Thursday afternoon in this regard where the World Bank agreed to assist in improving port efficiency and also work on customs modernization, trade facilitation and upgrading regional-connectivity infrastructures.
Abdul Baki, additional secretary (wing chief of World bank wing) of the Economic Relation Division (ERD) presided over the meeting.
“The World Bank has agreed to invest in the Regional Transport and Trade Facilitation Program. They have already asked for a development project proposal (DPP) immediately so that they can finalize the loan by the current fiscal year,” he said.
According to the ERD, four government agencies will execute and complete the project by 2024. They have been working to develop a DPP since last year to implement the project.
The implementing agencies are Bangladesh Land Port Authority (BLPA), Bangladesh Ministry of Commerce – WTO cell, National Board of Revenue (NBR) and Road and Highways Department (RHD).
“As far as I know, the progress of drafting the DPP is very slow. We will now knock them to prepare the DPP quickly as the World Bank plans to finalize the fund by this fiscal year,” Abdul Baki added.
The BBIN is a regional transport initiative where a motor-vehicle agreement (MVA) was signed for developing a sub-regional protocol for a cost-effective, efficient and seamless multimodal transport system linking four South Asian nations.
The deal was signed in June 2015 in Thimphu, Bhutan to facilitate the cross-border movement of passenger and cargo vehicles.
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Later, three of the countries ratified the agreement while Bhutan backpedaled, citing environmental concerns of the tourist-haven Himalayan country.
After the pullout of Bhutan, the BBIN move slowed and struggled for years as it has yet to be functional after nearly seven years of the deal.
However, India, Bangladesh and Nepal decided to sign an MoU which was finalized at a meeting held in New Delhi on March 7-8 this year. Bhutan participated in the meeting as an observer.
“It was decided in the meeting that we will prepare a protocol immediately to operate private vehicles and commercial transports among the countries,” said Md Anisur Rahman, joint secretary (connectivity wing) of the Road Transport and Highways Division.
Four components of the project
The World Bank will provide the $750 million in loan in four components under the Bangladesh Phase-1.
Under the project, three land ports – Benapole, Burimari and Bhomra – will be upgraded by the BLPA spending $250 million.
The World Bank is expected to lend $170 million for upgrading the customs houses in seaports and land ports, and conducting reforms and modernizing the country's tariff and trade policies. It will provide $300 million worth of loans for upgrading a highway that would improve cross-border trade and business.
The RHD will upgrade the Sylhet-Charkhai-Sheola-Sutarkandi Highway which will connect the Asian Highway 1 and 2. The highways will be a part of the Bangladesh-China-India-Myanmar (BICM) road corridor.
Bangladesh will also get $16 million worth of funds from the World Bank to enhance the reforms in trade policy, tariff policy, National Trade and Transport Facilitation Action Plan.
