Connecting Bangladesh: Economic Corridor Network
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Connecting Bangladesh: Economic Corridor Network Economic corridors are anchored on transport corridors, and international experience suggests that the higher the level of connectivity within and across countries, the higher the level of economic growth. In this paper, a new set of corridors is being proposed for Bangladesh—a nine-corridor comprehensive integrated multimodal economic corridor network resembling the London Tube map. This paper presents the initial results of the research undertaken as an early step of that development effort. It recommends an integrated approach to developing economic corridors in Bangladesh that would provide a strong economic foundation for the construction of world-class infrastructure that, in turn, could support the growth of local enterprises and attract foreign investment. About the Asian Development Bank COnnecTING BANGLADESH: ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to a large share of the world’s poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. ECONOMIC CORRIDOR Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, NETWORK and technical assistance. Mohuiddin Alamgir NO. 49 ADB SOUTH ASIA December 2016 WORKING PAPER SERIES ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK www.adb.org ADB South Asia Working Paper Series UpgradingConnecting in Bangladesh: the Indian Garment Industry: AEconomic Study of Corridor Three Clusters Network SaonMohuiddin Ray Alamgir MohuiddinSaon Ray ([email protected]) Alamgir is a former is Director Senior Fello of thew, Indian United NationsCouncil foragency, Research International on International Fund for Economic Agricultural Prithvijit Mukherjee No. 49 | December 2016 Development.Relations (ICRIER). Mishita Mehra Prithvijit Mukherjee is PhD Candidate, Department of Economics, Andrew Young School of Policy Studies, No. 43 April 2016 Georgia State University. Mishita Mehra is Graduate Student, Department of Economics, University of Washington, Seattle. ASIAN DEVELOPMENT DEVELOPMENT BANK BANK WP_Upgrading in the Indian Garment.indd 1 4/25/2016 12:33:25 AM Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2016 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rights reserved. Published in 2016. Printed in the Philippines. ISSN 2313-5867 (Print), 2313-5875 (PDF) Publication Stock No. WPS168559-2 Cataloging-In-Publication Data Asian Development Bank. Connecting Bangladesh: Economic corridor network. Mandaluyong City, Philippines: Asian Development Bank, 2016. 1. Bangladesh. 2. economic corridor. 3. transport corridor. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. 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[URL or DOI][license]. The views expressed here are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent. ADB does not endorse this work or guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Notes: In this publication, “$” refers to US dollars. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda ADB recognizes “Burma” as Myanmar and “China” as the People’s Republic of China. Printed on recycled paper CONTENTS ABBREViations vi ABSTRACT vii BacKGROUND 1 I. RECENT ECONOMIC DEVELOPMENTS IN BANGLADESH AND FUTURE PROSPECTS 1 A. Sustained Growth 1 B. A Brighter Future 3 C. Regional Disparities 4 D. Poverty 4 E. Climate Change 6 II. TRANSPORT INFRASTRUCTURE DEVELOPMENT IN BANGLADESH 7 A. Background 7 B. Road Transport 8 C. Railroads 8 D. Inland Waterways 9 E. Air Transport 9 F. Current Transport Policy and Planning 9 G. Regional Connectivity 10 H. Transport Planning for the Future 10 III. MethodologY FOR THE DEVELOPMENT, MANAGEMENT, AND MAINTENANCE OF INTEGRATED ECONOMIC CORRIDORS 11 A. Framework for Economic Corridor Development 11 B. Framework for Corridor Management and Operation and Maintenance 16 C. Identifying Corridors for a Comprehensive Integrated Multimodal Economic Corridor Network 21 D. Key Challenges 33 E. Impact Analysis 34 IV. PRIORITIZATION OF INVESTMENTS: IDENTIFYING PRIORITY CORRIDORS AND SECTIONS 36 A. Economic Analyses of Projects 36 B. Priority Corridors 37 V. Report FINDINGS AND CONCLUSIONS 41 VI. RECOMMENDATIONS 47 A. Core Priority Actions 47 B. Complementary Priority Actions 47 C. Implementation Strategies 52 REFERENCES 54 TABLES, FIGURES, BOX, AND MAPS TABLES 1 Indicators of Regional Economic Disparity in Bangladesh, 2010 4 2 Average Investment and Maintenance Expenditures, Developing Countries, 2005–2015 8 3 Road and Railway Networks of Bangladesh, 2011 8 4 Elements of Corridor Development Planning 19 5 Profiles of Nine Economic Corridors 24 6 Functional Connections in the National Highway System of Bangladesh 32 7 Border Link Roads in Bangladesh 32 8 Forecasted Average Annual Vehicle Growth Rates, 2015–2025 33 9 Projected Motor-Traffic Growth, 2015–2030 34 10 The Cost of Bangladesh’s Economic Corridors as Transport Corridors 37 11 The Cost of Bangladesh’s Economic Corridors 38 12 Bangladesh’s Economic Corridors Ranked by Priority 39 FIGURES 1 Average Annual Gross Domestic Product Growth Rate of Bangladesh 2 2 Bangladesh’s Sustained Growth, 1997–2014 3 3 Headcount Poverty Rates, FY1974–FY2010 5 4 Projected Growth in Population, Per Capita Income, and Gross Domestic Product, 2010–2050 7 5 The Growth Dynamics of Economic Corridors 12 6 An Overview of the Integrated Economic Corridor Approach 13 7 The Components of the Integrated Economic Approach 15 8 Technology, Skills, and Human Development for an Integrated Economic Corridor Approach 17 9 Climate Change Mitigation and Proofing for an Integrated Economic Corridor Approach 18 10 Corridor Management and Decision-Making Framework 20 11 A Methodology for Estimating the Impact of an Integrated Economic Corridor Network in Bangladesh 35 BOX 1 Selection Criteria for National and Regional Economic Corridors 23 MAPS 1 The Network of 16 Transport Corridors in Bangladesh 22 2 The Network of Nine Economic Corridors in Bangladesh 28 3 CIMECON Depicted in a London Tube-Style Format 29 4 Selected Proposed Infrastructure Interventions on Economic Corridors 1 and 2 48 5 Space Planning for Economic Corridors 1 and 2 50 ABBREVIATIONS ADB Asian Development Bank AH Asian Highway ASEAN Association of Southeast Asian Nations BCP border-crossing point BCMA Bangladesh Corridor Management Authority CIMECON comprehensive integrated multimodal economic corridor network EC economic corridor EIRR economic internal rate of return EPZ export processing zone GDP gross domestic product GMS Greater Mekong Subregion km kilometer NPV net present value O&M operation and maintenance PPP public–private partnership