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Let BBIN MVA deliver the goods

Rahman Jahangir | Saturday, 29 August 2015


Bangladesh has given go-ahead to a historic move for four-nation road connectivity in South Asia. The cabinet on August 22 ratified 'The Motor Vehicles Agreement (MVA) for the Regulation of Passenger, Personal and Cargo Vehicular Traffic between Bangladesh, Bhutan, India and Nepal'. The deal will come into effect after its ratification by all the four countries.
Earlier on June 8, the cabinet approved the draft of the deal aimed at improving the connectivity between four countries of the region-Bangladesh, Bhutan, India and Nepal (BBIN). Later, the agreement was signed on June 15 this year at a meeting of the road transport ministers of the four countries held in Bhutanese capital of Thimpu. An agreement and proposal will have to be signed to make the deal effective and officials concerned of the four countries will sit in Dhaka on September 8-9 to finalise the deal and proposal.
So far so good. But will BBIN, as it is still named only after four countries, have a platform to guide it? Or will it lie in files of the communication ministries of the four countries? If the deal is inter-governmental in nature, it must be given a structural shape as other regional organisations have today.
Is MVA completely outside the jurisdiction of the South Asian Association for Regional Cooperation (SAARC) as one country, during the last SAARC summit  in Kathmandu, had disagreed on the road transport agreement. Will BBIN deal with road connectivity only and not maritime or railway connectivity? This has to be clarified as the main target is to promote people-to-people contacts and enhance trade and commerce among the four countries.        
In fact, BBIN deal on MVA appears to be one of three planned accords set to be given go-ahead in last year's SAARC summit. But due to intransigence of a single member-state, the three decisions could not be taken through a mandatory consensus. The three agreements were the Motor Vehicles Agreement for the Regulation of Passenger and Cargo Vehicular Traffic among SAARC member-states, SAARC Regional Railways Agreement and SAARC Framework Agreement for Energy Cooperation (Electricity).
Prime Minister Sheikh Hasina was aware of divergence of views among the eight SAARC members on the three burning issues. That was why she had sought, during the Kathmandu summit, active support from other countries for implementation of regional connectivity by putting aside their differences in a bid to increase intra-regional trade. Physical connectivity is important in ensuring overall peace, progress and stability across South Asia, she had said at the inaugural ceremony of the 18th Saarc Summit at City Hall in the Nepalese capital.
Hasina had spelt out her vision of connectivity in the region. She made it clear that Bangladesh approaches connectivity in a wider context as it believes in connecting ideas, knowledge, technology, culture, people, road-rail-air, movement of goods, services and investment. Along with the early signing of the Regional Motor Vehicles Agreement, she had pleaded for Regional Railways Agreement. She even urged all SAARC leaders to lend their support to advance implementation of the agreed regional outcomes on connectivity.
Now it is time for all the stakeholders to see whether tough terms of BBIN accord will frustrate all the benefits it has sought to reap for the four countries. One condition says: "No vehicle could take passengers and carry goods midway in any country". It in fact defeats the very purpose of such connectivity. If a passenger with necessary visa cannot land in any of the four countries or a businessman cannot drop his consignment there, what would MVA really offer in concrete terms? Bangladesh, Bhutan, India and Nepal should have elaborate discussions with experts on these vital issues before they move further. MVA will fall flat if it fails to create a win-win situation for all the four countries.
Four countries should also think about introducing a common and easy visa procedure like Schengen Visa as introduced in Europe with which one can travel easily from one country to another. If businesses do not get benefit of low-cost road transport, what really would MVA offer in terms of greater trade and commerce? Added to this is a host of non-tariff barriers for businessmen. These are the pertinent issues needed to be addressed before the historic move is translated into reality.
The BBIN accord also appears to have run counter to what Wencai Zhang, Vice President, Operations 1, the Asian Development Bank (ADB), said at the meeting of Ministers of Transport of Bangladesh, Bhutan, India, and Nepal on Regional Road Transport Connectivity in Thimphu, Bhutan on June 15, 2015
The top ADB official said, finalisation of the BBIN Motor Vehicle Agreement represents considerable efforts of South Asian countries to facilitate cross-border trade and travel. "It will allow passenger, personal, and cargo vehicles to cross international borders and traverse key trade routes in the participating countries. Once implemented, the agreement will reduce costly and time-consuming transshipment of people and goods at border crossings," he said.
The agreement may not live up to the expectations of all who were elated over the move. The ADB is supporting ongoing road connectivity projects in each of the four countries through the South Asia Subregional Economic Cooperation (SASEC) programme. These projects will upgrade and complete transport routes that broadly cover SAARC corridors. These will also include facilities to enhance cross-border activities, such as access roads, dry ports and land customs stations.
But if the MVA is found to be ineffective in meeting the people's aspirations, the  ADB and other development partners may stay away from huge investment needed for necessary infrastructures to facilitate the project's smooth operation. A total of 30 priority road projects costing over US$ 8 billion have been identified to fill and upgrade critical connections in BBIN area.
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