The Asian Development Bank (ADB) will provide US$143 million worth of policy-based loan to improve the cross-border trade handling environment in the land ports of Bangladesh.
Economic Relations Division (ERD) Secretary Fatima Yasmin and Country Director of ADB Mr. Edimon Ginting signed the loan agreement virtually on Wednesday, according to a statement issued on Thursday.
The loan is expected to help develop the facilities at Akhaura, Sonamasjid and Tamabil land customs stations (LCSs).
The loan includes a $90 million policy-based loan to support reforms in areas like customs legal frameworks in compliance with the international standards, cargo clearance processes, and capacities of the National Board of Revenue (NBR) and the Ministry of Commerce.
To complement the policy reforms, a $53 million project loan will be provided to construct integrated land customs stations and land ports of NBR and the Bangladesh Land Port Authority (BLPA) at Akhaura, Sonamasjid, and Tamabil border crossing points (BCPs).
Facilities and equipment for customs clearance and cargo transshipment operations will also be installed.
Mr Ginting said: "Aligning with Bangladesh's policies and strategies, ADB is helping enhance export diversification and competitiveness for accelerating growth with industrialisation and trade, and expanding sub-regional trade and commerce."
"ADB assistance will help increase the volume of imported and exported cargoes at the Akhaura, Sonamasjid, and Tamabil border crossing points (BCPs) by 50 per cent by 2027, while reducing average customs clearance and cargo transshipment time by 50 per cent."
The e-payment at the three BCPs will be implemented, with their capacity increased to handle 520,000 tonnes per year of international transit cargoes, and central customs laboratory, customs warehouse, and customs regional training academy will be designed, Mr. Ginting added.
Bangladesh has been carrying out trade facilitation reforms to enhance export diversification and competitiveness by improving the quality of exports, signing bilateral trade and investment cooperation agreements, and promoting trade through better coordination among border agencies and private stakeholders.
The South Asia Sub-regional Economic Cooperation Integrated Trade Facilitation (SASEC) Sector Development Program (SDP) will reform trade policies and improve the cross-border trade facilities at Akhaura, Sonamasjid, and Tamabil BCPs.
It will also increase connectivity among SASEC countries by facilitating trade through Bangladesh as a sub-regional hub.
The SDP will help Bangladesh diversify its export destinations to countries within the sub-region and shift away from readymade garments to a more diversified export basket.
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