Why in the news?
Recently, India, Bangladesh, and Nepal signed an enabling memorandum of understanding (MoU) for the long halted Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement (MVA).
BBIN Connectivity Project-
- The project was conceived after the South Asian Association for Regional Cooperation (SAARC) failed to agree on a regional motor vehicle agreement at a summit in Nepal in 2014, particularly due to Pakistan’s opposition.
- The BBIN Motor Vehicle Agreement was signed on June 15, 2015 to facilitate the movement of Personal, Passenger, and Cargo Vehicular Traffic between the four countries, during a transport ministers’ meeting in Thimpu.
- Objective– By concluding the Passenger and Cargo Protocol, the Motor Vehicles Agreement (MVA) will be operationalized, allowing the BBIN countries to envision the full potential of trade and people to people connectivity by fostering greater sub-regional cooperation.
- Under this agreement, member countries would allow vehicles registered in the other countries to enter their territory under certain terms and conditions.
- Bhutan’s hesitation– For a while Bhutan has pulled out of the BBIN project in 2017 after failing to obtain parliamentary approval for the MVA.
- The three other countries chose to move forward with the agreement at the time.
- Funding– The Asian Development Bank (ADB) has granted funding for the project under its South Asian Sub regional Economic Cooperation programme, and has been asked to prioritize around 30 road projects worth billions of dollars.
- The World Bank estimated that the execution of the MVA will increase traffic-regional trade within South Asia by over 60% and also announced its interest in supporting infrastructure.
- Perpetual Issues– Some agreements are still holding up the final protocols, for example- insurance and bank guarantees, also the size and frequency of freight carriers into each country, which they anticipate finalizing this year before operationalizing bus and truck travels between them.
Bhutan’s concerns- Bhutan is concerned about sustainability and environment of the region. In 2020, Prime Minister Lotay Tshering said that the country’s top priority is to remain “carbon-negative”, that’s why it would not be possible for them to join the MVA,
o So the Bhutanese parliament decided not to authorize the plan.
Importance of BBIN-
- The agreement was signed ‘for the Regulation of Passenger, Personal and Cargo Vehicular Traffic between Bangladesh, Bhutan, India, and Nepal and to enhance economic growth in the region.
- BBIN agreement will encourage safe, economically efficient and environmentally sound road transport in the sub-region and will further help each country to build an institutional mechanism for regional integration.
- These countries will be benefited from mutual cross border movement of passengers and goods for the overall economic development of the region.
- The people of the BBIN countries will benefit through the seamless movement of goods and passengers across borders.
Similar Connectivity Initiatives in which India participates-
- India-Myanmar-Thailand Trilateral Highway.
- Bangladesh-China-India-Myanmar (BCIM) Corridor.
- Kaladan Multi-Modal Transit Transport (KMMTT).