In a major step towards greater regional integration in three decades of the Saarc, the South Asian nations are set to sign three framework agreements in Kathmandu for establishing rail, road and electricity connectivity.

Diplomatic sources said the negotiations among the member states on the three deals - Agreement for the Regulation of Passenger and Cargo Vehicular Traffic amongst Saarc Member States, Saarc Regional Agreement on Railways and Saarc Framework

Agreement for Energy Cooperation (Electricity) - are at the final stage.

These deals are expected to be signed by the foreign ministers of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka during the 18th Summit of the South Asian Association for Regional Cooperation (Saarc) in the presence of their heads of state and of government.

The Bangladesh cabinet yesterday approved the drafts of the second and the third agreements. The motor vehicle agreement is now pending at the law ministry for vetting.

The agreement is expected to be approved by the cabinet after Prime Minister Sheikh Hasina returns from her UK and Italy visit from November 16-20, foreign ministry officials said.

The Bangladesh delegation led by Hasina will leave Dhaka on November 25 for Kathmandu to attend the summit scheduled for November 26-27.

Land connectivity, climate change, poverty alleviation, energy sharing and development, and promotion of regional tourism and trade are some of the issues that are expected to figure during the discussions among the South Asian leaders and officials, according to the ministry officials.

The theme for the Kathmandu Summit is "Deeper Integration for Peace, Progress and Prosperity".

The idea of the three deals came from the Declaration of the 16th Summit in Bhutan styled "2010-20, Decade of Intra-Regional Connectivity

in Saarc".

When signed, the agreements will pave the way for building direct connectivity and providing better access to economic activities among the Saarc states and people of the region, the ministry officials believe.

The electricity agreement will create a regional energy market aimed at enhancing cross-border electricity trade among the South Asian countries.

The agreements will be signed in line with the decision made during the Maldives summit two years ago. The Saarc leaders opted for a new mechanism to develop regional railways and road connectivity.

In addition to the agreements, a 31-point Kathmandu Declaration will be issued on the concluding day of the Summit.

MOTOR VEHICLE AGREEMENT

According to the draft of the agreement, cargo vehicles like trucks and trailers, passenger vehicles both for hire or reward, and personal vehicles

can move across the region upon fulfilling the specified criteria and in accordance with the customs laws of the member states concerned.

The draft said that drivers must have special driving licences, cars must have certain fitness level and there must be a regional insurance coverage for any accident.

ELECTRICITY AGREEMENT

Linder this framework agreement, a Saarc Market for Electricity (SAME) will be developed on a regional basis. It will explore a regional power market involving Saarc countries that already have interconnection, as well as those that have planned interlinks.

It will establish a regional power exchange to maximise the potential for power transfers among the Saarc nations and reduce power shortages and exploit relevant economic benefits. RAILWAY AGREEMENT

The agreement will enable transportation of passengers and goods through railways across the region on certain terms and conditions.