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The Asian Development Bank (ADB) today approved a US$1.78 billion Multitranche Financing Facility (MFF) to improve mobility, road safety, and regional trade along the Dhaka-Sylhet trade corridor in Bangladesh.
The Dhaka-Sylhet corridor, once completed, will support a new trade route that connects Chattogram port with India’s northeastern states through the three land ports of Akhaura, Sheola and Tamabil and from there to Bhutan and Myanmar.
The corridor is also the centerpiece of the government’s planned Northeast Bangladesh Economic Corridor, which aims to promote key industries in the area, such as energy generation and production of construction materials and to better integrate them with the rest of the economy in the country, said an ADB press release here today.
“Bangladesh’s export-driven economic growth has shown its unique potential and opportunity of becoming a regional transport and trade hub. To sustain this growth, the country’s transport infrastructure needs to be improved,” said Satomi Sakaguchi, ADB’s transport specialist for South Asia.
“The project road is the main part of Road Corridor No. 5 under the South Asia Sub-regional Economic Cooperation (SASEC) programme. Its improvement will reduce logistics costs, increase competitiveness and help expand regional trade with neighboring South Asian countries as well as providing safe accessibility to the community members,” Satomi added.
The ADB specialist also said by doing so, the investment project will contribute to the government’s goal of achieving inclusive growth and sustainable development.
The SASEC Dhaka–Sylhet Corridor Road Investment Project will be delivered in four tranches.
The US$400 million first tranche of the MFF will help finance the initial works of the major contracts for the widening of about 210 kilometers (km) of National Highway No- 2 along the Dhaka-Sylhet corridor from a two-lane to a four-lane road with slow-moving vehicular traffic lanes.
It will include 60-km of footpath, 26 footbridges, and 13 overpasses. Its design will have features responsive to the needs of the elderly, women, children and the differently abled as well as disaster and climate risks.
The government will fund US$911 million of the total project cost of US$2.69 billion. Apart from the MFF, ADB will also provide a one million US dollars technical assistance grant from its Technical Assistance Special Fund and an additional US$2 million grant from the Japan Fund for Poverty Reduction, financed by the Government of Japan, to support capacity building of the Roads and Highways Department on road safety and maintenance, climate change, and gender equality and social inclusion.
Transport and trade facilitation are among the priorities of SASEC members, which since 2001, have invested more than US$14.3 billion in projects in the region, including 43 transport projects worth US$11.4 billion.
(BSS)
