The Asian Development Bank (ADB) has approved USD$1.2 billion for the second phase upgrade of the Dhaka-Northwest international trade corridor in Bangladesh, according to an ADB press release issued today.

“Bangladesh has good prospects of becoming a regional trade hub, if the country’s transport infrastructure can be improved to bring down transport costs and make the sector more competitive,” said Dong Kyu Lee, Unit Head of Project Administration in ADB’s South Asia Department.

“To further these aims, the project is expected to significantly boost trade and prosperity along the trade corridor route, the second busiest artery in the country,” he said.

The ADB funding will support to the corridor by improving the 190-km section from Elenga through Hatikurul to Rangpur. Road operation and management in the Roads and Highway Department will also be strengthened, the release said.

Besides, the upgradation project will help increase road capacity on 70 kilometers of the Joydeypur-Elenga section of the road. It will also improve operational efficiency of two of the land ports - Burimari and Benapole - that provide gateways to Bhutan and India, the release said.

The project will include setting up footbridges, footpaths and lanes for slow moving traffic to make their travel safer.

The total cost of the project is $1.67 billion, of which the government will meet $472.6 million.