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Bangladesh: Preparing the South Asia Subregional Economic Cooperation Integrated Trade Facilitation Sector Development Program

Sovereign (Public) Project | 53260-002 Status: Approved

The proposed South Asia Subregional Economic Cooperation (SASEC) Integrated Trade Facilitation Sector Development Program (the Program) will help improve Bangladesh's border infrastructure and trade facilitation environment, thereby contributing to the national goals of promoting a favorable industrialization and trade policy regime.The Program will support Bangladesh's implementation of the World Trade Organization's Trade Facilitation Agreement, and related best practices on transport and trade facilitation. The Program will also support the Government of Bangladesh to establish and improve border infrastructure as public goods, which will reduce the cost and time of cross-border transactions and handle international transit cargos.

Project Details

Project Officer
Masato Nakane South Asia Department Request for information
Country
  • Bangladesh
Sector
  • Industry and trade
 
Project Name Preparing the South Asia Subregional Economic Cooperation Integrated Trade Facilitation Sector Development Program
Project Number 53260-002
Country Bangladesh
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9879-BAN: Preparing the South Asia Subregional Economic Cooperation Integrated Trade Facilitation Sector Development Program
Technical Assistance Special Fund US$ 1.50 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Industry and trade / Industry and trade sector development

Gender Equity and Mainstreaming Some gender elements
Description The proposed South Asia Subregional Economic Cooperation (SASEC) Integrated Trade Facilitation Sector Development Program (the Program) will help improve Bangladesh's border infrastructure and trade facilitation environment, thereby contributing to the national goals of promoting a favorable industrialization and trade policy regime.The Program will support Bangladesh's implementation of the World Trade Organization's Trade Facilitation Agreement, and related best practices on transport and trade facilitation. The Program will also support the Government of Bangladesh to establish and improve border infrastructure as public goods, which will reduce the cost and time of cross-border transactions and handle international transit cargos. These are aligned with (i) the government's ongoing customs reform and modernization initiatives under Customs Strategic Action Plan 2019-2022, (ii) ADB's Strategy 2030, Operational Priority 7: Fostering Regional Cooperation and Integration, (iii) the SASEC Operational Plan 2016-2025, and (iv) one of the country partnership strategy's priority areas, deepening regional cooperation and integration.
Project Rationale and Linkage to Country/Regional Strategy

The performance of Bangladesh in various global indices reflects improvements in the trade facilitation environment, but it also indicates that there is ample scope for further enhancement. The government formulated Export Policy 2015-2018 to promote and facilitate export, improve quality and has signed 29 bilateral Trade and Investment Cooperation agreements. The positive impact of the reform measures initiated to enhance organizational structure and modernize facilities is yet to be fully realized, as their implementation is constrained by insufficient use, infrastructural and capacity limitations, shortage of skilled human resources and impending introduction of new as well as complementary reforms. Effective implementation of the World Trade Organization Trade Facilitation Agreement (TFA) is another factor necessitating prioritization of customs reforms in Bangladesh. To comply with TFA and improve the environment of international trade, the government has identified 13 areas where they need external assistance and support for capacity building.

Modernization of customs and improvement of trade and transport infrastructure are essential in the current competitive trade environment. In the World Bank's logistics performance index, weakness is apparent in many areas of the global performance of Bangladesh. Its overall logistics performance index score in 2018 was 2.58 out of 5, and its country ranking is 100 out of 160 countries. Lack of coordination by government agencies has hindered development of border infrastructure and operations in response to growth of trade and transport demands.

Most of the existing customs offices, and cargo transshipment and storage facilities are underdeveloped, and their capacity is insufficient to handle international transit cargos. The last 2-5 kilometers (km) sections of roads to border crossing points are generally narrow and their pavement conditions are poor. Also, India and Nepal have demands of international trade by using the railways in Bangladesh. Bangladesh needs to build modernized land customs stations and land ports, and improve road conditions and railway cargo handling facilities at border crossing points.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services ADB will engage an international consulting firm following ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. The consulting services will be implemented in 5 months by a team of international and national experts.
Responsible ADB Officer Masato Nakane
Responsible ADB Department South Asia Department
Responsible ADB Division Regional Cooperation and Operations Coordination Div, SARD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
National Board of Revenue
Rajashwa Bhaban Segunbagicha, Dhaka 1000
Bangladesh
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 28 Nov 2019
Last Review Mission -
Last PDS Update 02 Dec 2019

TA 9879-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2019 - - 30 Sep 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 0.00 0.00 0.00 0.00 1,500,000.00 28 Nov 2019 0.00

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Recruitment of Consultants for the SASEC Integrated Trade Facilitation Program Firm - Consulting Closed 19 Oct 2019 17 Nov 2019

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.