South Asia Sub regional Economic Cooperation (SASEC) program

• The Asian Development Bank (ADB) has approved a total of nine projects costing $2.42 billion as part of the Operational Plan (OP) 2016-2025 of the South Asia sub regional Economic Cooperation (SASEC) program.
• The nine projects comprise of two rail projects in Bangladesh worth $890 million, two economic corridor initiatives (a project and program loan) and a bridge project in India worth an aggregate of $1.2 billion, trade facilitation and airport projects in Bhutan worth $27 million and key SASEC road and energy projects in Nepal worth $302 million.
• These projects will receive ADB financing of $1.43 billion. These nine projects represent a significant increase compared to the previous 15 years, when the annual average value of projects approved was only about $500 million.

About SASEC:

• The South Asia Subregional Economic Cooperation (SASEC) program brings together Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka in a project-based partnership that aims to promote regional prosperity, improve economic opportunities, and build a better quality of life for the people of the subregion.
• SASEC countries share a common vision of boosting intraregional trade and cooperation in South Asia, while also developing connectivity and trade with Southeast Asia through Myanmar, to the People’s Republic of China, and the global market.
• SASEC seeks to strengthen multimodal cross-border transport networks that boost intraregional trade and open up trade opportunities with East and Southeast Asia.
• The program helps build modern and effective ustoms administration that speeds up the time and reduces the costs of moving goods, vehicles, and people across borders.
• Better connectivity will help unleash the tremendous potential for mutually beneficial trade between the seven SASEC countries, which remain some of the least economically integrated in the world.
• SASEC also assists member countries in improving energy security by developing infrastructure and promoting intraregional power trade to reduce costs and import dependence.
• In 2016, the SASEC countries approved the SASEC Operational Plan 2016-2025, a 10-year strategic roadmap, which introduced Economic Corridor Development as a fourth sectoral area of focus, to promote synergies and linkages between economic corridors across SASEC countries.
• This will help optimize development gains in the subregion, including industrial growth and competitiveness, the creation of high-quality jobs, increased productivity, and strengthening existing value chains.
• SASEC members gather regularly to discuss and address shared interests, creating support and ownership for the program at the policy level as well as practical collaboration at the technical working level.
• Over a decade of successful cooperation has built confidence and mutual trust through various discussion platforms that decide on coordinated actions for the benefit of all.
• ADB serves as the SASEC Secretariat.
• Since 2001, SASEC countries have implemented 46 regional projects worth more than $9 billion in the energy, economic corridor development, transport, trade facilitation, and information and communications technology sectors.

By: Vishal