By TON Research Desk

On Wednesday, the World Bank approved the funding to help national trade in Nepal and Bangladesh. Nepal, Bangladesh would get $1 billion to increase regional trade and connectivity. The Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) Programme Phase 1 will help the respective governments to remove the key obstacles to regional trade physical and paper-based trade processes, insufficient conveyance, trade substructure, preventive trade and transport rules and procedures.

The Phase 1 programme will substitute long manual and paper-based trade procedures with digitized mechanical solutions in Bangladesh and Nepal. The computerization will enable faster border crossing times and install electronic tracking of truck entry and exit, electronic queuing, smart parking, and CCTV cameras.

The programme will also help advance designated road passages and will also elevate key land harbors and custom infrastructure while safeguarding a green and climate-resilient construction. This will help the incorporation of landlocked Nepal and Bhutan with the neighboring countries of Bangladesh. The regional trade suggests huge unexploited prospective for the countries of South Asia.

Nowadays, regional trade accounts for only five percent of South Asia’s total trade, while in East Asia it accounts for 50 percent according to the World Bank Vice President for South Asia. South Asia economic will grow significantly and create opportunities for millions of people by increasing regional trade and connectivity.

The $753.45 million financing for the Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) Project in Bangladesh will promote the 43km section of the two-lane Sylhet-Charkai-Sheola to a climate-resilient four-lane road, connecting the Sheola Land Port with the Dhaka-Sylhet Highway. This will cut down travel time by 30 percent.

The project will upkeep digital systems, infrastructure, and will streamline processes at Benapole, Bhomra, and Burimari land ports, the three largest land ports in Bangladesh handling approximately 80 percent of land-based trade. It will also support the modernization of the Chattogram customs house which handles 90 percent of all import/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 percent 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.”

The $275 million ACCESS Project in Nepal will upgrade the 69km two-lane section of Butwal-Gorusinghe-Chanauta road along the East-West Highway to a climate-resilient four-lane highway, with a focus on ensuring better road safety. This is expected to reduce travel time by 30 percent, thus providing better access to India’s western seaports.

The project will make at least three market areas along the highway with devoted areas for women businesspersons and dealers to safeguard the women and will benefit from the enhanced economic opportunities.

The market areas will prepared with separate washrooms for women, free Wi-Fi, and digital bulletin boards with timely trade and market information. It will also support capacity building to enhance trade and customs processes at Birgunj and Bhairahawa border points. The project will also help advance Nepal’s preparedness and subsequent implementation of the Motor Vehicle Agreement (MVA).

According to World Bank Nepal has huge unused possible for regional trade and exports. Low regional trade is often a result of the high cost of connectivity. The project will help solve Nepal’s economic potential through improved trade connection both between the provinces as well as regionally among Nepal and other states to support a green, strong, and inclusive development.

It is highly critical to ensure trade growth, long-term sustainability and resilience of investments, while minimizing actual degradation on the environment, wildlife and ecosystems along with Nepal’s road network, which carries 90 percent of passengers and goods movement,” said World Bank Task Team Leader of the Nepal Project and co-Task Team Leader of the Programme. “The project will adopt and implement an innovative green and resilient highway corridor concept in Nepal, based on a landscape-level development approach.”

In the second phase, the programme will include Bhutan. A key focus of the Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) programme is to support solutions that will most efficiently decrease times at trade gateways, which will reduce trade prices. This will result more border collaboration and management between countries and will finish the corporeal review of goods, as it tantamount to simplifying procedures and practices.