The Government of Bangladesh and the Asian Development Bank (ADB) signed the agreement for the first tranche of the South Asia Subregional Economic Cooperation (SASEC) Dhaka-Sylhet Corridor Road Investment Project worth $400 million on 4 October 2021. The project is a $1.78 billion multitranche financing facility approved by ADB on 27 August 2021.

The first tranche will finance widening of approximately 210 kilometers of the Dhaka-Sylhet section of the existing National Highway No. 2 from two lanes to four lanes to improve its efficiency, connectivity, and safety. The road will be equipped to withstand disaster and climate risks.

The project will open opportunities for the entire northeast region of Bangladesh, noted Mr. Manmohan Parkash, ADB Country Director for Bangladesh. With its connectivity to the border of India via the Sylhet-Tamabil section, it will act as a strategic corridor for subregional, regional, and international trade. It will also be linked to upcoming economic zones in the Sylhet region.

The Dhaka–Sylhet corridor will support a new trade route that connects Chattogram port with India’s northeastern states through the three land ports of Akhaura, Sheola, and Tamabil land ports, and with Bhutan and Myanmar.

The SASEC Dhaka–Sylhet Corridor Road Investment Project is included in the SASEC Operational Plan 2016–2025 Update. It will link Bangladesh's road transport network with the Asian highway network, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation corridor, and the South Asian Association for Regional Cooperation corridor.

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ADB signs agreement with Bangladesh for first tranche of USD 400 million loan for highway development