FROM PAGE 1

In its 51-point election manifesto, the BNP pledged to reduce population density in Dhaka by enhancing services in districts and upazilas and by strengthening local governments.

Once operational, the corridor could raise Bangladesh’s GDP growth by two percentage points on average and generate 10 million jobs within a decade and help reduce poverty for around 12 million people.

ADB began study for the plan last year, when reform initiatives by the interim government across several sectors were gaining momentum.

The Manila-based multilateral lender submitted the draft report soon after the current government assumed office, while the final report is expected next month, according to officials.

Earlier this month, the draft proposal was handed over to Finance Minister Amir Khosru Mahmud Chowdhury, who placed it before Prime Minister Tarique Rahman on Sunday.

Tarique gave the green light to the ADB’s plan with some directives, The Daily Star has learnt from people involved with the proceedings.

The proposal includes investments to upgrade existing roads, railways and waterways along the corridor, alongside projects in education, healthcare, energy and power.

It envisions land-based LNG terminals and gas exploration initiatives. The other components include multimodal transport hubs, port development and digital connectivity.

According to the draft, infrastructure would be developed to support small and medium enterprises (SMEs) within urban areas across the 100-kilometre belt.

Existing roads, rail lines and inland water terminals would be modernised, while new facilities would be built to ensure smoother transportation of goods.

Digital connectivity projects would also be undertaken to support the growth of ICT-related businesses.

Key infrastructure investments include upgrades to Mongla Port in Khulna, Benapole Port in Jashore and Sheola Land Port in Sylhet to strengthen connectivity and trade facilitation.

Areas along the Naf River and the Sabrang area in Teknaf upazila would be developed as special tourism zones.

Tarique called for special support for farmers and SMEs in northern Bangladesh, particularly through improved rail links, to ease the movement of goods to Dhaka and other key markets.

He also called for the development of international-standard healthcare facilities to help reduce the outflow of foreign currency spent on treatment abroad.

The proposed financing would come from a combination of ADB support, other development partners, private investors and the Bangladesh government, according to finance ministry officials involved with the proceedings.

One of the key objectives would be to attract private investment into economic activities linked to the corridor.

The Economic Relations Division said part of the financing would come directly from ADB, with co-financing arrangements also under consideration.

The plan also seeks to draw foreign investment through projects designed for private sector participation.

ADB has long financed initiatives aimed at boosting trade and economic cooperation among Bangladesh, India’s northeastern states, Bhutan and Nepal.

Within Bangladesh, it has also supported projects focused on domestic economic corridors.

Against this backdrop, officials said ADB is now keen to finance a comprehensive, long-term development plan for Bangladesh.

The proposed corridor initiative is highly ambitious in both scale and scope, though it would be difficult to assess fully without seeing the detailed plan, said Zahid Hussain, former lead economist at the World Bank’s Dhaka office.

“A 20-year plan will span multiple electoral cycles. Bangladesh’s past experience shows that changes in government often lead to shifts in project priorities. Ensuring continuity of commitment will therefore be a major challenge,” he told The Daily Star.

Governance would also be a major factor as such a plan could not be managed by a single ministry.

With components spanning transport, health and industry, it would require a “whole-of-government” approach, he said, adding that it remains unclear which entity would serve as the lead agency, how inter-ministerial coordination would be handled and what the overall management framework would look like.

The success of the plan would depend on a well-defined governance structure, he said. However, the ADB proposed that the Prime Minister’s Office or the cabinet division be the coordinating agency.

On financing, Hussain said attracting private investment, including foreign direct investment, would be another big challenge.