The World Bank (WB) will provide $150 million to Bangladesh for developing infrastructure in the bordering areas of key land ports to increase regional connectivity and trade under the BBIN initiative.

An agreement is going to be signed today between Economic Relations Division (ERD) and the WB Dhaka office in this regard.   

Bangladesh will spend the fund to improve the infrastructure in the bordering areas as four nations — Bangladesh, Bhutan, India and Nepal (BBIN) — agreed for regional multimodal connectivity.

In April the World Bank approved $150 million financing to improve multimodal transport and trade logistics infrastructure and services, including modernisation of land ports.

“Bangladesh needs faster and higher quality growth to attain its vision of becoming a middle income country by 2021. The World Bank is supporting Bangladesh to overcome key bottlenecks to higher growth including addressing the huge infrastructure gap, and improving intra-regional connectivity and trade logistics,” said Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan, and Nepal.

To improve connectivity and trade with India, Bhutan, and Nepal, the Regional Connectivity Project 1 will invest in infrastructure, systems and procedures to modernise three key land ports at Bhomra, Sheola and Ramgarh and improve security at the Benapole land port.

Through the development of customs modernisation and ICT infrastructure, the project will reduce the average time needed to meet the regulatory requirements associated with trade activities, and clear traded goods at land ports.

In addition, the fund will benefit female traders and entrepreneurs through facilitating skill development programmes, improving logistics and transport services at key border points, and developing a simplified trade regime and clearance procedures.

The projects will be funded by the World Bank’s concessionary arm, International Development Association (IDA). The Regional Connectivity Project-1 will receive $150 million zero-interest IDA credits with a 38-year term, including a six-year grace period, and a service charge of 0.75 percent.

The development objective of the First Regional Connectivity Project for Bangladesh is to improve conditions for trade through improving connectivity, reducing logistics bottlenecks and supporting the adoption of modern approaches to border management and trade facilitation.

The project has three components—investment in infrastructure, systems and procedures to modernise key selected land ports essential for trade with India, Bhutan and Nepal— which will finance key development works at four land ports along the Southwest to Northeast Corridor that are key to facilitating regional trade and transit. It will also enhance coordination among trade sectors and economic empowerment of women through trade opportunities, integrating them into regional and global supply chains.

EA