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Showing posts with label economic development. Show all posts
Showing posts with label economic development. Show all posts

Sunday, March 03, 2024

Bangladesh can be a game changer for northeast India


SALEEM SAMAD

Landlocked northeast Indian states do not have easy access to cost-effective seaports.

Imports and exports of northeast Indian states are very time-consuming, loaded with frustration, and most importantly, the high cost of transportation.

Politicians, business bodies and state governments of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura underscores boosting connectivity, transit and trade with Bangladesh and through Bangladesh territory, which is expected to be a game changer for the northeast.

They have realised that connectivity with Bangladesh to access the ports is vital to economic growth and rapid industrialisation in the landlocked region.

Bangladesh ports to ease northeast trading

The connectivity projects have gained momentum after Bangladesh allowed the use of its Chattogram and Mongla ports and transit facilities to India’s northeastern states.

The road distance between Kolkata and northeastern states is more than 1,200 km, while Chattogram and Mongla ports are located at almost half the distance.

Recently, Tripura Chief Minister Manik Saha said Tripura will be the gateway to southeast countries by using Chattogram Port in Bangladesh, which will substantially reduce the time and costs associated with transporting goods to the northeastern states.

Bangladesh has already allowed India to use its Chattogram Port through South Tripura's Sabroom sub-division. The Maitri Setu (bridge) built on the Feni River has already been inaugurated for transportation and passengers through the bridge.

Once the bridge is operational, Tripura will have direct access to Chattogram Port and will widen new possibilities in business and trade.

Saha said, that not only South East Asian (SEA) nations, Tripura will have access to many countries by using Chattogram Port on the Bay of Bengal.

Saha also highlighted the Indo-Bangladesh railway project connecting Bangladesh's Gangasagar station with Agartala railway station.

Agartala-Kolkata train via Padma Bridge in 10 hours

Union Minister of State for Social Justice and Social Empowerment, Pratima Bhoumik, said the Indo-Bangladesh rail link will be a game changer once the connectivity is operational.

The 32-hour train journey from Agartala to Kolkata through Bangladesh will be completed in 10 hours. It will boost trade, business, investment, and people's movement in the northeastern state into the heart of India, she added

Dhaka-Delhi relation enhances connectivity

Dhaka and New Delhi have been closely cooperating in implementing numerous bilateral and sub-regional rail, road, and waterway initiatives.

In recent years, the two countries have launched several bus, train and air services, opened immigration checkposts and upgraded border infrastructure boosting bilateral ties and enhancing trade and connectivity.

In a significant development in November 2023, Bangladesh Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi jointly inaugurated three New Delhi-assisted infrastructure development projects including the Agartala-Akhaura cross-border rail link and Khulna-Mongla rail line through video conferencing.

Earlier, External Affairs Minister Dr Subramanyam Jaishankar noted that five operational bus services, three cross-border passenger train services and two inland waterway routes are facilitating greater trade and people-to-people contacts, which are integral parts of India’s broader engagement with South Asian neighbours.

After the Indo-Pakistan 1965 war, six decades ago the river transportation began to connect Rajshahi to Murshdabad in February. A cargo vessel carrying two tonnes of cotton departed from Sultanganj port to Maya port in Murshidabad.

Similarly, the first cargo vessel sailed from Kolkata in the first week of August 2022 carrying 16 tons of iron pipes in a container via Mongla Port with destination Meghalaya using the Tamabil-Dawki border points and 8.5 tons of pre-foam in another container for Assam using the Bibir Bazar-Srimantapur border points.

Once the official protocols are completed, the passenger ships will soon connect Dhaka with Kolkata.

The four northeastern states, namely, Assam, Meghalaya, Tripura, and Mizoram share a 1,879 km-long border with Bangladesh and India has sought transit facilities through the neighbouring country for the transportation of goods to and from these states.

In August 2022, the Union Minister of Development of North Eastern Region (DoNER) G Kishan Reddy told the Lok Sabha (parliament) that enhancing comprehensive connectivity between India and Bangladesh through the northeast was crucial for strengthening bilateral ties and significant progress has been made in recent years.

During a parley between Hasina and DoNER Minister Reddy in September 2022, in New Delhi, the Bangladesh government proposed that the chief ministers of the seven northeastern states could visit Dhaka for a sharing meeting for enhancing cooperation in connectivity, trade and security.

Reports say the union government accepted the proposal in principle, and, work is underway to decide on a suitable time for the visit which will involve coordinating the schedules of seven chief ministers.

Unfortunately, the grand meeting of the Chief Ministers of northeastern states did not materialise for the coronavirus pandemic and national elections in Bangladesh.

Awami League's commitment

The ruling Awami League government of Sheikh Hasina is keen on engaging northeastern states to expand trade, connectivity, and people-to-people ties with Bangladesh.

The AL leaders have pointed out that Hasina decided on principle to grant transit facilities to India’s land-locked northeastern states in 2015, when her government was facing severe political instability in the country, and this demonstrated her firm conviction in forging friendly ties with India.

The AL leaders maintain that Prime Minister Hasina has taken a big political risk and steadily cemented Bangladesh’s ties with India.

In a major development in April 2023, Bangladesh’s National Board of Revenue (NBR) granted permission to transport goods from one Indian state to another using the country’s key ports under a bilateral agreement signed in October 2018.

The NBR issued the permanent standing order to use Chattogram and Mongla seaports for transit and transhipment to carry goods to and from India through Bangladesh’s territory following the completion of trial runs for the operationalization and regular movement of goods.

India has extended three Lines of Credit (LoCs) amounting to $7.35 billion over the last 12 years for the development of infrastructure in various sectors, according to Dr. Rupak Bhattacharjee, an independent public and foreign policy analyst.

Exploring riverine routes for trade

Bangladesh and India have plans to develop an Eastern Grid with 5,000 km of navigable waterways connecting neighbouring countries including Bangladesh.

Both countries believe that the development of this grid will accelerate development but will further deepen eastern India’s trade with Bangladesh, Bhutan, India, and Nepal (BBIN) Motor Vehicle Agreement (MVA) initiative.

With the seamless connection between National Waterway (NW)-1 (Ganges), NW-2 (Brahmaputra) and NW-16 (Barak), India is keen to create an economic corridor linking the northeast with the rest of India via Bangladesh.

During the September 2022 bilateral summit, the prime ministers of India and Bangladesh directed their respective officials to work together to address the issues of pollution in rivers and to improve the riverine environment and river navigability concerning common rivers.

Bangladesh has decided to dredge in the old Brahmaputra River for the restoration of its dry season flow, which will enable navigation through the Brahmaputra will vastly improve and reduce the 116 km distance in the Indo-Bangladesh Protocol Route.

Road connectivity with northeast

Dr Bhattacharjee writes, that the Bangladesh government has initiated 42 infrastructure development projects under Indian LoCs, of which 14 have been completed, and the remaining 28 projects are at various stages of implementation till February 2023.

The construction and timely maintenance of high-quality roads capable of taking ever-increasing loads of passengers and goods, the building of modern, user-friendly river ports for ensuring safe and easy navigation and the development of a multimodal logistics hub are key components of India’s overall framework of cooperation with Bangladesh on the connectivity front.

The ongoing four-lane project, which is expected to be operational by June 2026, will connect the Sylhet-Chattogram National Highway as well as the Ashuganj river port and Akhaura land port.

The approved routes include transportation to Dawki in Meghalaya via Tamabil in Sylhet, Sutarkandi in Assam via Sheola, and Srimantapur in Tripura via Bibir Bazar in Cumilla, as well as the reverse directions. Cargo originating from India and arriving at Chattogram and Mongla ports can be directed to Agartala, through Akhaura in Bangladesh will reach the northeastern states quickly.

Delays in fund disbursement

However, reports suggest that the Cumilla-Brahmanbaria road project is progressing slowly due to delays in loan disbursement.

Similarly, the Benapole-Jashore-Narail-Bhatipara-Bhanga road project is facing funding issues.

The Ashuganj-Sarail-Dharkar-Akhaura road project is also moving slowly due to a cash flow problem of the Indian contractor.

Both the Benapole-Bhanga and Ashuganj-Akhaura road projects have been taken up to improve cross-border connectivity between India and Bangladesh and need to be fast-tracked.

The delay in the execution of various projects has led to cost escalation. For example, the cost of the Ashuganj inland container river port project will increase by 10 to 15 per cent.

The Bangladesh government’s Economic Relations Division has noted that some slow-moving projects including the Bay Container Terminal Project at Chattogram Port (with a $400 million loan) and the Saidpur Airport Project have to be reviewed.

Air connectivity with northeast

India has greenlit four new air routes that connect the country's northeastern states with international destinations, including Dhaka and Chattogram, under a project for improving regional air connectivity called "Udan".

Officials of the Indian civil aviation ministry said fares on these routes – Guwahati-Bangkok, Guwahati-Dhaka, Imphal-Mandalay and Agartala-Chattogram – will be subsidised by the state governments of Assam, Manipur and Tripura to facilitate air travel.

Guwahati is all set to get its first international flight under the International Air Connectivity Scheme (IACS) Guwahati-Dhaka flight from 1st July. The northeastern passengers on their onward journey to the Gulf, South-East Asia and European destinations will have lesser layovers during transit in Dhaka and Chattogram.

The article first appeared in The Daily Mesenger, Dhaka, Bangladesh, 3 March 2024

Saleem Samad is Deputy Editor of The Daily Messenger and an award-winning journalist. An Ashoka Fellow and recipient of the Hellman-Hammett Award. Email: saleemsamad@hotmail.com; Twitter (X): @saleemsamad

Saturday, October 14, 2023

China-Russia-America, who is the friend of Bangladesh?


SALEEM SAMAD

As the much-talked-about general elections expected in early January 2024 approach, the global superpowers are zooming their hawkish eyes on Bangladesh.

Most concerned people in the West, of course, the Bangladeshi expatriates and especially the Indians frankly ask why the superpowers are interested in the political development in a country of 173 million people.

In one word – the “China card”. The West, neighbouring India and even Japan are feeling jittery over the growing Chinese influence in the Sheikh Hasina-led government and her party Awami League.

Once an Indian diplomat in a private gathering sought opinion on why China’s mega-projects get approval quickly, and India’s infrastructure development projects are delayed due to bureaucratic red tape. He was told that the Japanese had a similar experience of projects falling through the faultline of bureaucracy.

China’s inroad to Bangladesh and getting contracts for mega projects had irked India, Japan and the United States.

Indian media have written on the expansion and development project of the third largest airport at Sylhet, in northeast Bangladesh and the proposed Teesta River Comprehensive Management and Restoration Project. However, the later project was shelved showing errors in the loan proposal.

The Osmani International Airport in Sylhet is in close proximity to Assam and Arunachal state is further north, where India borders with Tibet in China. The airport is in a strategic location for eavesdropping into Indian northeast states, it is feared by Delhi. Recently China’s official map shows Arunachal as South Tibet, inviting fresh ruckus with Red Dragon.

What is China’s interest in the Teesta River, a transboundary river that flows through India and Bangladesh? The proposed project has raised eyebrows in the region. The river is a significant source of water for both India and Bangladesh.

Indeed, the river is crucial for the economic development of the region as it is a source of water for agriculture and hydroelectric power generation. The river water sharing has been a bone of contention between the two neighbours for decades.

China’s involvement in the Teesta River dispute has added a new dimension to the conflict. The Red Dragon’s interest in the Teesta River can be attributed to its strategic ambitions in the region. The river originates in the Himalayas and flows through the Indian states of Sikkim and West Bengal before entering Bangladesh, says a river morphologist.

Japan has undertaken to construct the largest deep-sea port on Maheskhali island, in the Bay of Bengal and has been able to bulldoze the Chinese proposal of a second deep-sea port in Sonadia, not far from the ongoing project of the Rising Sun.

Tokyo has been able to convince Delhi that the deep-sea port on the Bangladesh coast which serves adequately to export/import of northeast Indian states, will boost economic growth and immensely contribute to the country’s GDP.

Bangladesh, last week became the 33rd member of the nuclear club. The under-construction Russian project Rooppur Nuclear Power Plant will augment electric generation in energy-starved northern Bangladesh.

Other than the nuclear power plant, Russia does not have a second mega project in Bangladesh.

Bangladesh imports food grains from Russia and exports various garments items, jute, frozen foods, tea, leather, home textiles and ceramic products.

Bangladesh, however, has a historic relationship with Russia. The former Soviet Union took a proactive position in favour of Bangladesh’s independence war in 1971.

Delhi and Moscow signed a historic Indo–Soviet Treaty of Peace, Friendship and Cooperation which expedited the bloody independence of Bangladesh.

Meanwhile, the United States is being bombarded by cyber-warriors with anti-American rhetoric in social media after Washington announced visa restrictions on officials of the governing party, opposition, government officials, police administration, judiciary and media persons. This applies to those who undermine or cause hindrance to the democratic elections in Bangladesh, the axe will fall upon individuals and their immediate family members.

It is understood that the visa restriction by the USA triggers a chain reaction in Australia, Canada, France Germany, Italy, Spain, the United Kingdom, and the allies in the West in denial of entry to their countries.

The US Embassy in Dhaka to counter the rhetoric has launched the #DidYouKnow campaign for Bangladesh’s audience in social media.

For example: #DidYouKnow, the United States is the biggest foreign direct investor in #Bangladesh?

Bangladesh received USD 3.44 billion in foreign direct investment (FDI) during 2021-2022 for three broad sectors of FDI inflows: infrastructure, manufacturing, and services, according to Bangladesh Bank (the central bank).

The USA FDI stood at $575 million in 2022, while China seems the largest FDI source of Bangladesh climbed to $940 million for 2022, reported Dhaka Tribune.

Diverse sectors offer opportunities for U.S. companies, including natural gas exploration and production, power generation, financial services, infrastructure, agribusiness, information technology, consulting services, and civil aviation to name just a few.

The garment sector has been a key driver of economic growth for Bangladesh over the past few decades. The US-Bangladesh has a $14 billion trade relationship and it’s growing, tweets the US Embassy in Dhaka.

What irks Bangladesh is when America expresses concern on stellar human rights record, democratic election process, freedom of the press and freedom of expression.

The relations went cold in 2021 when the US imposed punitive measures, in support of US Global Magnitsky human rights sanctions, targeting six of the elite anti-crime Rapid Action Battalion’s (RAB’s) former officials, including current and immediate past heads of the Bangladesh police.

The sanction did make an impact. A study claimed that RAB’s extra-judicial killings and enforced disappearances have dramatically reduced, which received accolades from human rights organisations.

Meanwhile, Abed Khan, Chief Editor of Dainik Kalbela warns that in a week several economic sanctions against individuals, business establishments and government entities are likely to be imposed citing corruption and money-laundering, which is now a transnational crime.

Journalist Chandan Nandy, based in New Delhi writes in the Northeast News portal (blocked by Bangladesh authorities) also claims that sanction is in the offing against money laundering and corruption.

Foreign Minister Dr AK Abdul Momen trashed rumours of fresh sanctions by the US, in response to media reports told journalists. “We were in the US…they (US) only want free and fair elections. Even the words – participatory or caretaker government – were not mentioned,” he remarked.

While the United States pressure on the current government on the upcoming general election is visible, China and Russia’s position contradicts the United States, quoting unnamed sources in Washington DC.

The polarisation of the rivals United States, China and Russia has been observed, writes a commentator for BBC Bangla Service.

Humayun Kabir, a former Bangladesh ambassador to Washington, opines that Bangladesh has become the new ‘field of polarisation’ of the United States, China and Russia.

He said that the US President Joe Biden administration’s foreign policy envisages ‘establishing democracy and human rights’ in different countries of the world and Bangladesh is in the bigger canvass to neutralise China’s hegemony in South and South East Asia.

Another reason is that America’s Indo-Pacific strategy has focused on actively implementing the United States domination in the Asia region, with new and old allies.

Kabir said, the European Union too also want Bangladesh to strengthen democracy and hold free and fair elections in upcoming polls. In exchange, Bangladesh will benefit equally, especially from the trade facility, which is believed to strengthen the democratic process in the country.

China is a development partner of Bangladesh, retorted Prime Minister Sheikh Hasina, when she was confronted by overjealous Indian journalists.

Professor Imtiaz Ahmed of Dhaka University says Bangladesh is caught in a triangle of Russia, China and America, because of its geo-strategic position.

Bangladesh, positioned on the coast of the Bay of Bengal which merges with the Indian Ocean and the Pacific Ocean comes under the fold of strategic partnership with America, Japan and India.

Political historian Mohiuddin Ahmad said the reason Bangladesh is a strategic partner in Asia because the country has made dramatic economic development and has been fairing on the parameters of Sustainable Development Goals (SDG), which gives hope to the big powers rivals that the country is not a failed state like Pakistan or Somalia.

Therefore, the agenda of the United States, European Union, Japan and India to encourage Bangladesh to hold free, fair and credible elections and remain steadfast on the path to democracy will enable Sheikh Hasina to be the longest-serving prime minister to return to power for the fifth tenure.

First published in Northeast News, Guwahati, Assam, India, 14 October 2023

Saleem Samad is an award-winning independent journalist based in Bangladesh. A media rights defender with the Reporters Without Borders (@RSF_inter). Recipient of Ashoka Fellowship and Hellman-Hammett Award. He could be reached at saleemsamad@hotmail.com; Twitter: @saleemsamad