South Asia Subregional Economic Cooperation

ADB Assistance

ADB's efforts to support subregional cooperation in eastern South Asia stems from the constitution of the South Asia Growth Quadrangle (SAGQ) by the Foreign Ministers of Bangladesh, Bhutan, India and Nepal (BBIN). The Ninth Summit of the South Asian Association for Regional Cooperation (SAARC) on May 1997 in Male had endorsed SAGQ as a subregional initiative under SAARC.

At the request of BBIN, ADB launched assistance for subregional cooperation under the South Asia Subregional Economic Cooperation (SASEC) Program. ADB's support to BBIN in pursuing subregional cooperation is undertaken mainly through:

• Umbrella Technical Assistance
• Other ADB regional cooperation initiatives in South Asia
• Other ADB Assistance

Umbrella Technical Assistance

1. RETA 5936: Identification and Prioritization of Subregional Projects in South Asia is aimed at assisting BBIN in identifying and prioritizing subregional cooperation projects. The broad criteria for shortlisting subregional projects were determined at the Inception Meeting of Country Advisors held in Manila in March 2001. The technical assistance has made significant progress in assisting four participating countries in identifying subregional projects in five priority sectors:
• Transportation and Communication
• Energy and Power
• Tourism
• Environment
• Trade, Investment and Private Sector Cooperation

A follow-up RETA was processed in 2001 for the second phase of the SASEC Program.

2. RETA 6010: Technical Assistance for South Asia Subregional Economic Cooperation II shall help carry forward the cooperative dialogue initiated under SASEC Phase I Program and institutionalize sector working groups and the participation of the senior officials to help further develop the BBIN subregional cooperation dialogue. Technical Assistance will also support the preparation of concept studies for selected projects/programs identified and prioritized under RETA 5936.

The SASEC Phase II Program will follow a two-track approach in terms of implementing priority projects approved under the SASEC Phase I Program, as follows:

• Projects/Programs that are already well defined and have high priority can proceed under separate stand alone Project Preparatory Technical Assistance (PPTA) or Advisory TA (ADTA). These projects will be included, either in the SCSP or each of the SASEC country's CSP

• New project proposals and other projects identified under the SASEC Phase I Program, which still require some refinements, can be taken up or further reviewed, under the SASEC Phase II Program.

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Other ADB regional cooperation initiatives in South Asia

1. First Meeting of the Private Sector on Economic Cooperation in the Eastern South Asia Subregion (ESAS), an initiative of the Chambers of Commerce of Bangladesh, Bhutan, India and Nepal held in Calcutta, India on 28-29 November 2000. The Forum brought together public and private sector representatives as a step towards identifying an investment program to develop the region. The Forum recognized that public-private partnerships would be the main instrument of transformation, especially in undertaking infrastructure projects in the subregion.

2. Regional Round Table on Information and Communications Technology (ICT), was held in Bangalore, India on 28-29 August 2001. The Roundtable provided a venue for countries of the region to better understand and directly observe India's successful experience with information and communications technology. It has also facilitated application of ICT to:

• improve governance
• increase exports of services
• increase employment in the sector
• increase the quality and access to public services.

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Other ADB Assistance

Two projects having subregional cooperation impact have also been approved by the Board:

• The West Bengal Corridor Development Project, a north-south road corridor from Raiganji, near Siliguri, to Barasat, the north of Kolkata in West Bengal, India with links to border points in Bangladesh
• The Road Network Development Project for Nepal's East West Highway, which links to India and Bangladesh through Kakarbita.

In addition, ADB's Private Sector Group has invested in Lafarge Surma Cement, the first subregional private sector project, which will transport limestone from Meghalaya, India, to a cement plant in Bangladesh through a cross border conveyor system.