A Jamuna River-based economic corridor meant for boosting Bangladesh's economy seems in the offing as the World Bank (WB) agrees to assist the country in implementing the project, which has regional dimensions.
Economic Relations Division (ERD) officials said Friday the WB would help Bangladesh improve the Jamuna-river communications system aimed at enhancing the economic activities in the adjacent areas.
"The World Bank has assured us of providing US$150 million worth of loan for the development works," said a senior ERD official about the basin-based development project, which, incidentally, comes into limelight after China's recent affirmation of engagement in Teesta basin-management scheme.
"We are negotiating with the WB for the loan. We have sought the financial support from the WB's concessional window-IDA. We hope the loan will be confirmed shortly," he added.
Earlier, the WB had assured of providing the funds from its hard-term 'Scale-up facility' fund.
The Jamuna River is one of the important riverine corridors of Bangladesh as it is a trans-border waterway system connecting the Bay of Bengal.
It is the lower stream of the Brahmaputra River, which originates in Tibet as Yarlung Tsangpo, before flowing into India and then southwest into Bangladesh.
It is a potential route to conduct billions of dollars worth of business among nations in the South Asian region, to which the global economic focus is shifting.
According to the ERD, three government agencies-the Shipping Ministry, Bangladesh Water Development Board (BWDB), and Financial Institutions Division (FID)-will implement the Jamuna River Economic Corridor (JREC) project.
Under the proposed project, the Bangladesh Inland Water Transport Authority (BIWTA) under the Shipping Ministry will ensure navigability of the river that connects Bangladesh's eastern and north-northwestern parts.
The BWDB will reconstruct the embankment for checking river erosion and for smooth water flow in the mighty river.
Getting support from the WB, the FID will work to ensure financial solutions for the community protection and macro-level insurance facilities.
Another ERD official said: "The government wants to revive the riverine communications in Bangladesh. The Jamuna River Economic Corridor project will be one of the steps to upgrade the water-way communications."
He said the FID with the help of the central bank and some commercial banks would work to protect the rural communities involved with the economic activities adjacent to the Jamuna basin.
Besides, BIWTA and BWDB will ensure the navigability and protect the river from perennial erosion to facilitate the economic activities, the ERD official said.
"We are hopeful of the loan confirmation within this year. After the final negotiations, we will sign a loan deal to get the financial aid from the WB," he adds.
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