BBIN initiative and after

South Asian countries have been able to recognise the importance of regional transport connectivity in accelerating their respective competitiveness and economic growth because of improved political relations and commitment for strengthening regional cooperation.

The member countries of South Asian Association for Regional Cooperation (SAARC) in its 16th summit at Thimpu in 2010 declared 2010-20 as the decade of intra-regional connectivity within SAARC and acknowledged the need for development of transport infrastructure and transit facilities for promotion of trade among them.

The summit also agreed to expedite negotiations towards finalisation of transport facilitation agreements on seamless movement of motor vehicles and railway connectivity within the region. The agreements on regional connectivity between Bangladesh and India also reached in 2010 served as a stepping stone for establishing connectivity not only between the two countries, but also with Bhutan and Nepal.

The need for regional connectivity in South Asia is increasingly being reflected in the national transport policies of respective member countries. Bangladesh has put emphasis on regional connectivity in its latest 5-year plan, national land transport policy, road master plan and railway investment plan.

Bhutan has prioritised the construction of southern east-west highway to facilitate industrial development in the southern economic hubs with a view to integrating it more effectively with its primary markets in India.   

India has emphasised the need for strengthening both social and physical infrastructure to promote closer economic cooperation with its South Asian neighbours. It has also identified the necessity for improvement of connectivity with its north-eastern states taking Bangladesh on board.

Nepal, in its 12th Five Year Plan has highlighted the development of regional trade route for promotion of regional trade.  

In the backdrop of SAARC's failure in ensuring easy movement of vehicles among its member countries due to intransigence of a certain member country, Bangladesh, Bhutan, India and Nepal (BBIN) jointly signed a Motor Vehicle Agreement (MVA) in Thimphu on June 15, 2015 and formulated a six-month plan to implement the deal to allow seamless movement of cargo and passenger vehicles among these four countries. It would help open up the sub-region for investment, trade and people-to people contact that will have multiplier positives for the economic growth of the sub-region.

One year has passed since the signing of the MVA and the same has been ratified by parliaments of respective signatories except Bhutan. Hence, it could not take off within the given time frame. However, the recent ratification of the agreement by Bhutanese parliament has removed the barrier that stood on the way of the implementation process. Now, hopefully, respective countries would start doing the needful in taking care of all relevant factors without further delay.

Transforming transport routes into economic corridors would potentially accelerate intraregional trade within this South Asian sub-region by almost 60 per cent and with the rest of the world by over 30 per cent, according to experts. At present, intra-regional trade among these four countries is less than 5.0 per cent. When fully implemented, it would open up scopes and opportunities for greater people-to-people contact and trade under the BBIN initiative.

Many transportation experts believe that the timetable for implementation of the agreement by six months is too inadequate because existing infrastructure needs to be vastly improved which may take not months but years.

However, according to experts, certain conditions in the deal like certain restrictions on transportation of goods, requirement of language skill (Hindi, Nepalese and Bhutanese language) for drivers and installation of vehicle tracking system would cause impediment to smooth implementation of the deal.

Experts feel that implementation process could face problems in respect of infrastructural capacity, particularly, roads of the countries involved. Bangladesh alone will need around US$ 2.3 billion for road development. It would be imprudent for the country to spend such a huge amount of money unless the accrued benefits are substantial on a long term basis. Other countries, particularly - Nepal and Bhutan will also need to spend substantial amounts for refurbishing their roads and other attendant facilities.    

Another difficulty appears to be the easy availability of visas for travelling within the countries of the region. Unless obtaining visas are made easier for travellers, movement of goods and people will be hampered, thus putting the very objective of the deal in jeopardy.  

The writer is Secretary & CEO India-Bangladesh Chamber of Commerce and Industry. [email protected]