ADB submits proposal on economic analysis of Bangladesh-India transit
Wednesday, 14 April 2010
Nazmul Ahsan
The Asian Development Bank (ADB) has submitted to the government a comprehensive proposal to make an economic analysis of transit between Bangladesh and India for approval, official sources said.
The Bank submitted last week the modalities for conducting the analysis to the Economic Relations Division (ERD) last, which had earlier sought assistance from the former in this respect, they added.
Initially, the ADB will identify transport corridors, estimate traffic flows, project the benefit of trade creation and identify infrastructure projects that would be needed to cope with the additional traffic flows under a proposed arrangement of Indo-Bangla transit, the ADB said in its proposal.
Besides, the study will estimate the cost to construct the developing gateways -land, seaport, storage facilities and customs check posts along the transit routes between the two countries.
The ADB will analyse the data on trade between the two countries through major land ports during the last 15 years. It will also make projections for the next 20 to 30 years under a transit regime between the two neighboring countries, the proposal said further.
In addition, the Bank will examine both road and rail corridors for the transit purpose. The transport links include road/rail link to Benapole and onward to Kolkata and infrastructure costs to upgrade facilities at Chittagong port to handle additional trade.
The study will project low, middle and fast growth scenario of trade under a transit agreement between the two countries, said the Bank.
'The study will in fact represent a pre-feasibility analysis which generates benefits in value terms.' The proposal of ADB said.
Officials in the ERD said they are more or less convinced about the ADB proposal. They said they had already asked the Tariff Commission to finalise all relevant issues and clauses for the analysis to be made by the ADB.
A source in the Tariff Commission said they would soon hold a discussion with ADB officials to fine tune their proposal.
The Asian Development Bank (ADB) has submitted to the government a comprehensive proposal to make an economic analysis of transit between Bangladesh and India for approval, official sources said.
The Bank submitted last week the modalities for conducting the analysis to the Economic Relations Division (ERD) last, which had earlier sought assistance from the former in this respect, they added.
Initially, the ADB will identify transport corridors, estimate traffic flows, project the benefit of trade creation and identify infrastructure projects that would be needed to cope with the additional traffic flows under a proposed arrangement of Indo-Bangla transit, the ADB said in its proposal.
Besides, the study will estimate the cost to construct the developing gateways -land, seaport, storage facilities and customs check posts along the transit routes between the two countries.
The ADB will analyse the data on trade between the two countries through major land ports during the last 15 years. It will also make projections for the next 20 to 30 years under a transit regime between the two neighboring countries, the proposal said further.
In addition, the Bank will examine both road and rail corridors for the transit purpose. The transport links include road/rail link to Benapole and onward to Kolkata and infrastructure costs to upgrade facilities at Chittagong port to handle additional trade.
The study will project low, middle and fast growth scenario of trade under a transit agreement between the two countries, said the Bank.
'The study will in fact represent a pre-feasibility analysis which generates benefits in value terms.' The proposal of ADB said.
Officials in the ERD said they are more or less convinced about the ADB proposal. They said they had already asked the Tariff Commission to finalise all relevant issues and clauses for the analysis to be made by the ADB.
A source in the Tariff Commission said they would soon hold a discussion with ADB officials to fine tune their proposal.