ADB to gauge potential of northeast economic corridor

Asian Development Bank (ADB) is conducting a study on the potential of establishing an economic corridor in the northeastern region of Bangladesh linking India, Bhutan and Nepal.

Economic corridors are integrated networks of infrastructure within a geographical area designed to stimulate economic development.

“The economic corridor will not only improve transport gateways and connectivity within Bangladesh…,” said Soon Chan Hong, senior economist (South Asia department) at the ADB Dhaka office, yesterday. 

“…but also has the potential to enhance the country’s role as land bridge between South Asia via India and Southeast Asia via Myanmar,” he said.

Hong shared this through a presentation at a consultation workshop on the corridor jointly organised by ADB and Bangladesh Investment Development Authority (Bida) at Pan Pacific Sonargaon Dhaka. 

According to the findings of the ADB, the main route for transportation, having extensions to key gateways such as the Mongla, Payra and Benapole ports, would form a grid network.

It will not only increase intra-regional trade and investment but also play a pivotal role in integrating economies across the region, Hong noted. 

The ADB had earlier shared a study on a similar corridor on the southwest, stating that the region could contribute to economic growth, with industrial output of up to $148 billion by target industries and 25 million corridor-induced employment by 2050.

Addressing the programme, Planning Minister MA Mannan said the government would undertake necessary projects to utilise the northeastern trade potential.

“We will emphasise connectivity over air, road, rail and river and urge the line ministries to implement the project,” he said, adding that the ADB was ready to provide funds for the corridor development.

Salman F Rahman, the prime minister’s private industry and investment adviser, said the government has already realised the region’s trade potential with India’s northeastern states.

He said the government has undertaken a plan to establish 100 economic zones around the country and aid the movement of their produce by utlising the corridor’s trade potential. He also appreciated the ADB’s assistance.  

Manmohan Parkash, country director of the ADB, highlighted the region’s resources and strategic location. 

He stressed the need for developing a comprehensive plan for the region for coordinated and holistic development of industry and infrastructure. 

“The study will identify promising industries in the region and propose infrastructure and urban services needs for planned industrial development, offering solutions for inclusive and regionally balanced high economic growth,” said Parkash.

Abul Kalam Azad, principal coordinator of SDG affairs at the Prime Minister’s Office, said river connectivity through the Brahmaputra, Meghna and Padma along with that through air and road could reap the corridor’s trade potential.

Sirazul Islam, executive chairman of Bida, and M Aminul Islam, the immediate past one, also spoke at the programme.