The World Bank has approved $1.03 billion of funding to help to improve regional trade relations in Bangladesh and Nepal by reducing transport costs and transit time using the regional corridors.
A press release was issued in this regard on June 28 stating, “Around $753.45 million of the approved money will be used in Bangladesh to upgrade the 43 kilometres the two-lane Sylhet-Charkai-Sheola roads to a climate-resilient four-lane road a part of the Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) project, connecting the Sheola Land Port with the Dhaka-Sylhet Highway."
This will reduce the travel time by 30 per cent. The project will support digital systems, infrastructure, and more streamlined processes at Benapole, Bhomra, and Burimari land ports. These three land ports handle approximately 80 per cent of land-based trade for Bangladesh.
The project will also support the modernisation of the Chattogram customs house which handles 90 per cent of all imports and exports of Bangladesh, the release read.
“The trade between Bangladesh, Bhutan, India, and Nepal grew six times from 2015 to 2019, however, the unexplored potential of regional trade for Bangladesh is estimated at 93 per cent,” said Mercy Tembon, World Bank country director for Bangladesh and Bhutan.
On the other hand, some $275 million will be used in Nepal for upgrading 69-kilometre two-lane of Butwal—Gorusinghe—Chanauta roads and the East-West Highway to a climate-resilient four-lane highway under the ACCESS Project. This is expected to reduce travel time by 30 per cent. It will ensure better access to the western seaports of India.
This is the phase one of the programme which will help to replace lengthy manual and paper-based processes with a digitalised automated one for Bangladesh and Nepal.
In the second phase, Bhutan will be included in the programme.
The program will also help to improve the selected corridors and upgrade the key land ports and custom infrastructure as well.
