Bangladesh, ADB ink $204m deal to expand dhaka–northwest corridor
The Asian Development Bank (ADB) and the Government of Bangladesh today signed a $204 million loan agreement to upgrade the Dhaka–Northwest international trade corridor, a key route for subregional connectivity and economic development.
The agreement was signed by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, ADB Country Director for Bangladesh, at a ceremony held at ERD in Dhaka.
This assistance marks the fourth tranche of ADB's $1.2 billion multitranche financing facility under the Second South Asia Subregional Economic Cooperation (SASEC) Dhaka–Northwest Corridor Road Project.
Keep updated, follow The Business Standard's Google news channel
"This project supports Bangladesh's efforts to modernise its road transport system and strengthen trade links with Bhutan, Nepal, and India," said ADB Country Director Hoe Yun Jeong. "It will reduce travel time, vehicle emissions, accidents, and traffic congestion—while boosting connectivity and economic activity along the corridor."
The project will four-lane a 190-kilometre stretch from Elenga to Rangpur via Hatikumrul, enhancing road safety and adopting climate-resilient designs. Gender-responsive features—including footbridges, footpaths, and dedicated lanes for slow-moving traffic—will ensure safer mobility, particularly for women who frequently travel by foot or rickshaw.
Additionally, the project will enhance road operations and management within the Roads and Highways Department.
ADB has been a longstanding partner in developing this strategic corridor, beginning with the landmark Jamuna Bridge Project in 1994. Under the SASEC Road Connectivity Project approved in 2012, ADB supported the upgrade of the Joydebpur–Elenga section and modernised operations at Burimari and Benapole land ports gateways to Bhutan and India.
Transport infrastructure remains at the core of the ADB-supported SASEC programme, which promotes regional connectivity and prosperity. In Bangladesh, road transport accounts for 70% of passenger traffic and 60% of freight, with traffic volumes increasing at an annual rate of 8%.
