Bangladesh to back Bhutan for WB fund for river transit

Bangladesh will urge India to include Bhutan in the tri-nation team eligible for a World Bank fund to increase the navigability of a river transit route.

In April, Bangladesh and India decided to take assistance from the WB for the route, and the Washington-based multilateral lender agreed to provide the loan from its regional connectivity fund.

But, it added a condition that at least three countries jointly apply for the credit.

Bangladesh will make the recommendation for Bhutan at a four-day meeting scheduled to start in India today between the shipping secretaries of the two countries.

A 13-member team led by Shipping Secretary Shafique Alam Mehedi has already reached New Delhi.

The final decision regarding Bhutan will come up in the meeting, which will allow the country to take benefit from the river transit facility.

In the meeting, Bangladesh will also propose a charge of maximum of Tk 242.22 or $3.11 from India for each tonne of goods ferried through its river route. The exchange rate has been calculated at Tk 77.74 for $1.

The minimum fee structure would be Tk 192 a tonne, which is equivalent to $2.46, according to the proposal from Bangladesh.

The fee has three components: Tk 130 for the National Board of Revenue, Tk 10 for the Bangladesh Inland Water Transport Authority for facilitating smooth transit of goods, and Tk 1.024 a tonne per kilometre for the Road Transport and Highways Division for using its road network. It will cost Tk 52 to transport a tonne of goods from Ashuganj to Akhaura.

The standard operating procedure (SOP) of the coastal shipping agreement will also be signed.

Once the SOP is finalised, the two countries' ships will ply each other's coastal waters to transport cargo, a move that will slash transport costs by two-thirds. Bangladesh signed an agreement with India on the use of Chittagong and Mongla ports during Prime Minister Narendra Modi's visit to Bangladesh in June.

The meeting will discuss how the ports will be used, which routes will be taken for going to India, when the agreement will come into effect and what to be done for uplifting the two ports. Besides, the meeting will also discuss the issues related to the signing of an agreement to carry passengers and tourists via river routes.