Bangladesh News

The World Bank (WB) has kick-started a consultation process for South Asian regional integration to improve trade and power links, and to better manage water resources in the least integrated region of the world.

Visiting WB Vice-president Praful Patel revealed the initiative yesterday after meeting the finance and foreign advisers as part of a trip that includes visits to Nepal and India to identify common grounds for regional projects on trade, water management, energy, and infrastructure, which may be funded by the bank.

Patel told reporters that the region is the least integrated in the world, and better connectivity will boost the already formidable growth rates in South Asian countries, as studies have shown a significant link between improved regional integration and rising growth.

“We have done the analysis and we have found hydro-power, trade, and water management as key areas,” Patel said adding that the bank is willing to fund and provide technical assistance for future projects.

“I am going to Nepal and India to hold consultations to identify concerns and priorities,” he said adding, it is the beginning of the region taking concrete steps in achieving ‘win-win’ scenarios for the countries.

Describing India as the world’s most energy hungry nation, he said regional integration could tap into Nepal’s potential for producing 85,000 megawatts (MW) of power while its current capacity stands at less than 5,000 MW.

Patel said the region also has a myriad of water problems including both droughts and floods, requiring a more coordinated management of waterways similar to the successful joint-management of the Indus River basin by India and Pakistan.

“We [WB] can play the role of convening by having these countries on common ground and perhaps with different priorities. We can finance regional projects like we have done in other parts of the world,” he said.

Finance Adviser Mirza Azizul Islam told reporters that the two sides talked about deepening Bangladesh’s engagement in the region and that the country was the first to start the initiative for regional integration through South Asian Association for Regional Cooperation (Saarc) mechanisms.

WB also signed an agreement with Bangladesh on a $100 million quick disbursing credit, to allow the government quick access to the bank’s fund for post Sidr recovery. The deal was signed by Economic Relations Division Secretary M Aminul Islam Bhuiyan and WB Country Director Xian Zhu.

With yesterday’s deal WB’s total contribution rose to $370 million for post Cyclone Sidr rehabilitation including re-allocated funds, budget support, and livelihood support.

Asked of WB’s assessment of the caretaker government’s economic performance, Patel said, “We think the economic management has been done very well.”