BANGLADESH REGIONAL CONNECTIVITY PROJECT 1 MODERNIZING TRADE LOGISTICS IMPROVING INTEGRATION AND COMPETITIVENESS APPROVAL DATE: END DATE: TOTAL COMMITMENT: IMPLEMENTING AGENCIES: BASIC INFORMATION April 5 December 31 $150 million Bangladesh Land Port Authority, 2017 2023 Ministry of Shipping; WTO cell, Ministry of Commerce; and Department of Customs in National Board of Revenue, Ministry of Finance. OVERVIEW Bangladesh is well placed to play an important role in regional trade as a transit country in South Asia. Geographically, Bangladesh’s location makes the country a gateway to India, Nepal, Bhutan, and other East Asian countries. Some corridors and associated Border-crossing points connect West Bengal, India, and the Southwestern region of Bangladesh to landlocked Bhutan, Nepal and the North East Region (NER) of India. However, high logistical costs due to poor infrastructure and trade facilitation are constraining Bangladesh from playing a more active role in regional integration despite its strategic location. The Bangladesh Regional Connectivity Project 1 supports the Government of Bangladesh to modernize trade related infrastructure, border management, systems, and procedures. These improvements will help Bangladesh increase regional connectivity and trade with India, Bhutan, and Nepal. 104 CHALLENGE TOWARDS THE FUTURE Bangladesh’s relative cost advantage from being a low labor cost producer is diminished by poor As global and regional markets become more performance in trade facilitation. For example, Bangladesh manufacturers’ ‘Order to Delivery competitive, the demand for shorter lead times are Cycle’ is 35 to 50 percent longer than many of their competitors. Trade-related infrastructure is mounting. Improving trade infrastructure and facilitation inadequate, and border crossing times at some land ports are measured in days, rather than hours. will be critical for Bangladesh to sustain and accelerate export growth, including with its regional neighbors. The land ports are unable to accommodate existing and potential trade volumes which causes While trade with India increased more than five-fold, delays for traded goods. A significant proportion of Bangladesh’s international trade procedures are from $ 1.8 billion in 2005 to over $9 billion in 2018, this still paper-based and continue to be managed manually, causing delays for border clearance and is less than half of its current potential. The Regional hampering private sector competitiveness. Connectivity Project will introduce modern approaches to border and customs management, including the evolution towards integrated land border facilities and an APPROACH enabling environment for domestic and cross- border collaboration between The project supports the development and improvement of four land ports along the Southwest to land port and customs Northeast Corridor that are key to facilitating regional and transit trade. They are: Bhomra, Sheola, administrations. Ramgarh, and Benapole. Recognising that comprehensive border management and customs improvement require a clear vision, strong political will and commitment, the project supports an inter-ministerial National Trade and Transport Facilitation Committee (NTTFC) to coordinate trade and transport-related policies and activities in Bangladesh. The project will develop a National Single Window system which will allow traders to submit all import, export and transit information via a single electronic gateway, instead of submitting the same paperwork to multiple government agencies. This will facilitate faster and more transparent international trade procedures and reduce transaction time and cost for the private sector. The project will also support policies and investments to remove bottlenecks faced by women in trade and business. To bring more women traders into formal trade networks and global value chains, the project will facilitate skills development programs for women. EXPECTED RESULTS More than double the Two-thirds reduction in truck 40% reduction in average time to meet regulatory freight volume at land ports clearance time at land ports requirements associated with import- export THE WORLD BANK IN BANGLADESH | 105