The World Bank and the India Government have signed a $107m credit agreement for the Mizoram State Roads II – Regional Transport Connectivity Project to improve transportation between Bangladesh and Myanmar.

Funded through the International Development Agency (IDA), the project aims to boost regional trade among neighbouring countries.

The link to Bangladesh will increase bilateral trade in the north-eastern region of India, whereas the link with Myanmar will facilitate connectivity with the rest of East Asia and beyond.

"A better connected Mizoram can open up huge trade potential for the entire north-eastern region of India with South and East Asian countries."

World Bank India country director Onno Ruhl said: "Being strategically located between Myanmar and Bangladesh, a better connected Mizoram can open up huge trade potential for the entire north-eastern region of India with South and East Asian countries.

"These countries will be able to export and import goods cheaper and faster. Consumers will also benefit from better pricing and choices."

The proceeds will be used to develop 91km of roads that are design-ready, as well as carry out studies and designs for an additional 330km road expected to come up in the north-south corridor in Mizoram, possibly connecting Myanmar.

The project will also support Mizoram’s road sector modernisation plan (RSMP), which aims to introduce new technologies to promote cost-effective road construction, strengthen road safety management systems and help transform the state’s public works department into a modern road agency.

World Bank project task team leader and senior transport specialist Diep Nguyen-van Houtte said: "Improving transport connectivity can play a vital role in enhancing growth in Mizoram, a remote, hilly, and mountainous region where road transport is the only mode of transport within the state.

"Better connectivity can help reduce freight and passenger transport costs, and provide quicker and safer access to all parts of the state and to neighbouring states and countries."