The Asian Development Bank (ADB) and the Government of Bangladesh on Tuesday signed a €277.88 million ($300 million) loan agreement to help upgrade the Dhaka-Northwest international trade corridor in Bangladesh.
Road travel accounts for 70 percent of all passenger traffic and 60 percent of freight in Bangladesh, as traffic grows at a rate of 8 percent a year, said the regional development bank.
Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), and Edimon Ginting, Country Director, ADB, signed the loan agreement on behalf of Bangladesh and ADB, respectively, at a ceremony at ERD in Dhaka.
The assistance forms the third tranche of $1.2 billion multitranche ADB loans for the Second South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project.
“This project supports Bangladesh’s commitment to modernize the road transport system and improve subregional connectivity and trade,” said ADB Country Director Edimon Ginting.
He said it will help reduce vehicle operating cost, travel time, vehicle emissions, accidents, and congestion along the Dhaka-Northwest road corridor.
“The project will also help accelerate economic development of the area along the corridor and facilitate subregional trade with Bhutan, Nepal, and India,” Ginting added.
The project will contribute to achieving Bangladesh’s goal of an efficient and modern transport system by four-laning the 190 km section from Elenga through Hatikumrul to Rangpur.
It will improve road safety and adopt gender-responsive features by including footbridges, footpaths, and two dedicated lanes for slow-moving traffic to make women’s travel safer as studies show that women particularly use the route on foot or slow-moving vehicles such as rickshaws.
Road operation and management in the Roads and Highway Department will also be strengthened. Climate-resilient design features will be adopted for constructing the road.
ADB has been supporting Bangladesh in improving the Dhaka-Northwest road corridor since the approval of the landmark Jamuna Bridge Project in 1994.
The 70 km Joydeypur-Elenga section of the road was improved under the SASEC Road Connectivity Project approved in 2012.
It also improved the operational efficiency of Burimari and Benapole land ports, which provide gateways to Bhutan and India, respectively.
Transport infrastructure is the centerpiece of the ADB-supported SASEC program, which promotes regional prosperity.
As of February 2023, SASEC member countries signed and implemented 79 ADB-financed projects with a regional dimension worth more than $18.41 billion, including 46 projects worth $13.17 billion in the transport sector.