WB clears $1b funding to improve regional trade in Bangladesh, Nepal

The World Bank has approved a $1.03 billion financing to help improve regional trade in Bangladesh and Nepal by reducing trade and transport costs and transit time along the regional corridors.

Of the amount, $753.45 million has been approved for the Accelerating Transport and Trade Connectivity in Eastern South Asia Project Phase I in Bangladesh for upgrading a 43-kilometre section of the two-lane Sylhet-Charkai-Sheola road to a climate-resilient four-lane one, connecting the Sheola Land Port with the Dhaka-Sylhet Highway, said a World Bank press release.

The up-gradation of the road will cut down travel time by 30 per cent.

The project will also support digital systems, infrastructure, and streamlining processes at Benapole, Bhomra, and Burimari land ports, the three largest land ports in Bangladesh handling approximately 80 per cent of land-based trade.

The project will also support modernising the Chattogram Customs House which handles 90 per cent of all import and export declarations in Bangladesh.

“While the trade between Bangladesh, Bhutan, India, and Nepal grew six times from 2015 to 2019, the unexploited potential for regional trade is estimated at 93 per cent for Bangladesh,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan.

“The project will help Bangladesh improve regional trade and transport and automation of processes will build resilience to crises like the Covid-19 pandemic,” added Tembon.

On the other hand, $275 million will go to ACCESS Project in Nepal for upgrading a 69-kilometre two-lane section of Butwal–Gorusinghe–Chanauta road along the East-West Highway to a climate-resilient four-lane one, with a focus on ensuring better road safety. This is expected to reduce travel time by 30 per cent, thus providing better access to India’s western seaports.

The ACCESS Phase I programme will help replace lengthy manual and paper-based trade processes with digitised automated solutions in Bangladesh and Nepal. In the second phase, the program will include Bhutan.

The automation will enable faster border crossing times and install electronic tracking of truck entry and exit, electronic queuing, smart parking, and CCTV cameras. The program will also help improve selected road corridors and upgrade key land ports and custom infrastructure while ensuring a green and climate-resilient construction. This will help the integration of landlocked Bhutan and Nepal with the gateway countries of Bangladesh and India.