WB approves $500m to improve Bangladesh’s road connectivity

The World Bank today approved $500 million to help Bangladesh improve road connectivity along the Jashore-Jhenaidah corridor covering four western districts.

The Western Economic Corridor and Regional Enhancement (WeCARE) Phase I project is the first of a multi-phased $1.4 billion World Bank programme to upgrade the existing 110-kilometre two-lane highway, Bhomra-Satkhira-Navaron and Jashore-Jhenaidah, to a safer and climate-resilient four-lane highway in western Bangladesh.

It will support the government's plan of developing a 260km economic corridor in the western part of the country and benefit over 20 million people.  

The first phase of the programme will upgrade 48km of the N7 highway between Jashore and Jhenaidah and improve about 600km connecting rural roads and 32 rural markets/growth centres to stimulate the local economy. 

To improve road safety, the highway will have additional lanes for slow-moving vehicles and a median safety barrier to separate oncoming traffic.

"The western region of Bangladesh is endowed with many agricultural and natural produce and holds great potential of becoming a gateway for regional and international trade," said Mercy Tembon, country director of the World Bank for Bangladesh and Bhutan.

"This project will unlock the region's potential by stimulating the economy of districts, linking farms to markets, connecting Dhaka with the western region as well as with neighboring countries, thus enhancing trade, transit and logistics along the corridor," she said.

To help the country realise the 'Digital Bangladesh' vision, the project will install fiber optic cables along the highway to provide reliable and affordable internet access, which will be critical for emergency responses and business continuities in crises similar to the Covid-19 pandemic.

"The Covid-19 pandemic has hit the poorest hard with the loss of jobs and income. To help them recover from the shock, the project will support immediate social protection and livelihoods to the vulnerable rural people by engaging them in labor-intensive civil works. Even in the post-Covid-19 period, the project will create jobs for the local communities through civil works for the national highway and connecting rural roads and markets," said Rajesh Rohatgi, senior transport specialist and project task team leader of the World Bank.

"It will also support the country's two key transport agencies—Roads and Highway Division and Local Government Engineering Department—to enhance emergency preparedness for any future pandemic or crisis," he added.

The project will also enhance agriculture supply chain efficiency in the western region by ensuring that produce are transported to markets in less time and lower cost.

The credit from the World Bank's International Development Association (IDA), which provides concessional financing, has a 34-year term, including a four-year grace period. 

With this financing, the World Bank's total commitment in the current financial year (FY 19-20) stands at $2.27 billion.