“With the completion of the Padma Bridge Bangladesh will be connected with many of the South and Southeast Asian countries. It will contribute immensely to communication, trade, industry, tourism and many other sectors in various ways”, according to the editorial of the current News Bulletin (Oct-Dec’ 2020) of International Chamber of Commerce-Bangladesh (ICCB) released on Sunday.
In particular it will immediately help in having better and faster connectivity with Bhutan, India and Nepal for trade and tourism, the editorial cited.
It also stated that the main structure of the 6.15-kilometre long Padma Bridge was completed on 10 December, 2020. The double-decker Bridge, with road and rail tracks, was estimated to cost around US$1.21 billion in 2007 but the cost has increased to US$ 3.86 billion, almost three times than the original estimate.
The cost escalation could have been minimized with close monitoring and timely implementation. The Rail Link through Padma Bridge, expected to be completed by June 2024, to improve accessibility of Dhaka with central and south western regions of the country. The estimated cost of the Rail Link Project is US$ 4.63 billion, 85% will be provided by Government of The People’s Republic of China through Exim Bank of China under an agreement.
According to experts, once the bridge is fully operational in June 2022 (if not further delayed), it will contribute around 1.2 percent to the annual GDP growth, reduce poverty and increase economic activities of the people of southwest region. It will open up investment in the south and southwestern regions and will connect Bangladesh’s premier Chattogram Seaport directly with the main land port Benapole.
The southwest region covers approximately 27 percent of the country and is home to nearly a quarter of its over 165 million population. But this region has remained one of the least developed parts, primarily due to lack of connectivity with the rest of the country, according to an Asian Development Bangladesh (ADB) study in 2011. “The proportion of the population below the poverty line in the southwest region remains about five percent higher than in the rest of the country”.
According to a Japan International Cooperation Agency (JICA) study, a 10 percent decrease in travel time to and from Dhaka will lead to a 5.5 percent increase in district economic output. The benefits of the project would be equivalent to an annual increase of at least 1.7 percent of southwest region GDP in value and of 0.56 percent of annual increase of national GDP, according to the World Bank project appraisal document in 2011.
Besides, Padma Bridge, the country is currently implementing a number of mega infrastructure projects like Dhaka Metro Rail, Bangabandhu Sheikh MujiburRahman Tunnel under the Karnaphuli River, Third terminal of HazratShahjalal International Airport (HSIA) and Bangabandhu Sheikh Mujib Railway Bridge over the Jamuna River among others.
Bangladesh has been at the centre of initiatives such as the BBIN Motor Vehicle Agreement, the BCIM Corridor and the BIMSTEC alliance, which envisage greater market access and create an enabling environment for rapid economic development. In order to promote trade, Bangladesh needs to join the UN Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention, 1975).
In recent years, a number of countries including China, India and Pakistan have joined the TIR Convention, with the completion of the Padma Bridge, the TIR system will help further enhance regional integration in South Asia and facilitate Bangladesh’s access to global markets.