Dhaka: The Asian Development Bank (ADB) and the Government of Bangladesh today signed a US$204 million loan agreement to help upgrade the Dhaka-Northwest international trade corridor. Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, country director of ADB, signed the loan agreement on behalf of Bangladesh and ADB, respectively, at a ceremony held at the ERD in the city, according to a press release.
According to Bangladesh Sangbad Sangstha, the assistance marks the fourth tranche of the $1.2 billion multitranche ADB loans for the Second South Asia Subregional Economic Cooperation (SASEC) Dhaka-Northwest Corridor Road Project. "This project supports Bangladesh's commitment to modernize the road transport system and improve subregional connectivity and trade," stated Country Director Hoe Yun Jeong. He further noted that the project would accelerate economic development along the corridor and enhance subregional trade with Bhutan, Nepal, and India. Additionally, the project aims to reduce vehicle operating costs, travel time, vehicle emissions, accidents, and congestion along the Dhaka-Northwest road corridor.
The project will contribute to achieving Bangladesh's goal of an efficient and modern transport system by four-laning the 190-km section from Elenga through Hatikumrul to Rangpur. It plans to improve road safety and implement gender-responsive features, including footbridges, footpaths, and two dedicated lanes for slow-moving traffic. These features aim to make women's travel safer, as studies indicate that women frequently use the route on foot or via slow-moving vehicles such as rickshaws.
The initiative will also strengthen road operation and management within the Roads and Highway Department and incorporate climate-resilient design features for constructing the road. ADB has been aiding Bangladesh in enhancing the Dhaka-Northwest road corridor since the approval of the landmark Jamuna Bridge Project in 1994. Previously, the 70-kilometer Joydeypur-Elenga section of the road was improved under the SASEC Road Connectivity Project approved in 2012.
Additionally, the project has improved the operational efficiency of the Burimari and Benapole land ports, which serve as gateways to Bhutan and India, respectively. Transport infrastructure remains central to the ADB-supported SASEC program, which aims to promote regional prosperity. In Bangladesh, road travel accounts for 70 percent of all passenger traffic and 60 percent of freight, with traffic growing at a rate of 8 percent annually.