Bangladesh road network
The financing will be used for upgrading Jashore-Jhenaidah highway. Credit: Karsten Würth on Unsplash.

The World Bank has signed a $500m financing agreement with the Government of Bangladesh for the upgrade of the Jashore-Jhenaidah highway.

The agreement will also help finance the renovation of connecting rural roads and markets, benefitfing more than 20 million people living in Bangladesh’ western region.

World Bank’s financing will be used for the Western Economic Corridor and Regional Enhancement (WeCARE) Program Phase I project, which will see the conversion of the 48km two-lane Jashore-Jhenaidah road into a contemporary four-lane highway.

The credit will help in improving 600km of rural roads, as well as developing or building existing or new rural markets.

The project will also see the installation of fibre-optic cables along the highway to ensure quick and reliable Internet service.

World Bank country director for Bangladesh and Bhutan Mercy Tembon said: “With better connectivity and logistics, farmers will be able to reach new and existing markets in less time and cost, and will also minimise loss from spoilage of perishable goods.

“The economic corridor will create new opportunities for people and stimulate the local economy. Moreover, this will help Bangladesh become a regional hub for trade, transit and logistics.”

The project is said to be the first of a multi-phased ten-year programme worth $1.4bn, which has been designed to renovate the existing 110km two-lane highways of Bhomra-Satkhira-Navaron and Jashore-Jhenaidah.

This project will initially be implemented in the four districts of Jhenaidah, Jashore, Magura and Chuadanga, and the project is expected to create new civil work employment opportunities for locals.

Offered by the World Bank’s International Development Association, the credit has a 34-year term, including a grace period of four years.

Government of Bangladesh Economic Relations Division secretary Fatima Yasmin said: “This is a ground-breaking project that will help simultaneously improve transport network. Improvement in the logistics and transport in the western districts will further help accelerate economic growth and development for the entire country.”