The upcoming Saarc summit on November 26-27 in Nepal has already caught the spotlight in being one that will lead to “greater regional integration” in terms of connectivity. Although Saarc has been around for some three decades, it has until now failed to live up to expectations in being a driver for delivery on connectivity among its member countries. Perceptions have changed with the possibility of three major deals that may be signed during the summit. These include: (i) An Agreement for the Regulation of Passenger and Cargo Vehicular Traffic among member States; (ii) Saarc Regional Agreement on Railways, and (iii) Saarc Framework Agreement for Energy Cooperation. With the last two agreements signed off by the government, the Bangladesh side is hopeful to get some serious discussions ending in firm agreements in Nepal.

The first agreement would facilitate “allowing the vehicles of other Member States to ply in their territory for transportation of Cargo and Passengers to various terms and conditions in the Agreement and obtaining permits for such transport from Members States as per procedure and protocols prescribed in the Agreement. The agreement if signed will result in closer regional economic cooperation and integration through enhanced regional connectivity by allowing movement of goods and passengers in the region through road transport.” The details will have to be thrashed out among member countries on operators that will be allowed to carry passengers and cargo. Other factors that will come up for consideration will be on the nature of permits and the traffic volume allowed by each country, and the entire regime of tariff will have to be worked out at the various entry points. The agreement will be reviewed every three years and can be amended or ratified then.

Like the road deal, the agreement on railways will allow for the ferrying of cargo and the movement of passengers along proposed routes. This agreement would allow for direct rail links on various routes connecting Pakistan, India, Bangladesh, Bhutan and Nepal. It opens up bright prospects for landlocked Nepal and Bhutan; both countries will gain access to two Bangladeshi ports of Chittagong and Mongla. Terms and conditions for using infrastructure in various countries will have to be worked out. As per a Daily Star report on November 23, “according to the draft, the countries will have to take measures for maintaining trains and servicing locomotives at interchange points, providing immigration and visa facilities, and ensuring security for passenger and cargo transportation”. This agreement will certainly be to our advantage, as it will provide Bangladesh Railway to earn meaningful profits by carrying cargo to various destinations.

But it is the last agreement that has the greatest potential and hope for the economy. Much has already been written on Saarc Framework Agreement for Energy Cooperation. The agreement would provide a platform for surplus-energy producing member countries to “export” electricity to energy-starved nations like Bangladesh and India. Were this agreement to see the light of day, it could open up the possibility for us to import hydroelectric power from other member countries. This is a deal that has generated much interest over the last four years since severe power crunch has left industrialisation plodding along an uncertain trajectory.

That said, all these deals have reportedly run into hot water ahead of the Summit. According to what has been published in the press on November 24, besides Bangladesh, Nepal and India, other members are far from ready with preparations to ratify these agreements. That is going to be a huge disappointment for policymakers who had hoped that the agreement signing would open up for a Saarc Market for Electricity (SAME). It would help expand the existing power trading that is already happening between India and Bangladesh. Were the agreement signed, Bangladesh could forgo (to a large extent) expensive electricity generation and turn to countries like Bhutan and Nepal and import electricity through interconnected power grids. It certainly is a major disappointment to see that the experts have probably not been able to work out the regulatory issues governing such a system. Similarly, Saarc remains one of the least networked regions in terms of physical connectivity leading high costs and low volumes of trade. The failure to agree on the railroad and road agreements will put back plans for transforming Saarc into a true trade bloc and hence missing out the opportunities associated with greater trade in the region. Disappointment at failure to ink three key pacts will be felt throughout Saarc.

The writer is Assistant Editor, The Daily Star.

By arrangement with The Daily Star/ANN