Kathmandu, January 21:

Japan and Asian Development Bank (ADB) are helping prepare an inves-tment project that will ease flow of goods, services and people across four countries in South Asia including Nepal.

The Japan Special Fund is extending a $1 million grant to draw up the design for the South Asia Sub-regional Economic Cooperation (SASEC) Transport Logistics and Trade Facilitation Project.

The ADB will manage the grant. There are four member countries including Nepal, Bhutan, Bangladesh and India in the SASEC.

The technical assistance consists of three components — a road corridor that passes from Kakarvitta in Nepal, through Panitanki-Fulbari in India to Banglabandha in Bangladesh, a rail link from Akhaura in Bangladesh to Agartala in India, and a modernised cross-border regime at key cross-border points, the Manila-based regional development stated in a press release today.

“The project will work towards improving cross-border transport infrastructure and the introduction of modern cross-border management to facilitate trade and the movement of people across SASEC states,” said Dong-Soo Pyo, principal financial analysis specialist of ADB’s Southeast Asia Department.

It was borne out of fifth SASEC transport working group meet in 2006, and fourth SASEC states advisors’ meeting in 2007, where SASEC states agr-eed to develop a regional transport and trade facilitation project to improve intra-regional transport.