This presentation takes an attempt to highlight and analyse the Motor Vehicle Agreement (MVA) among four South Asian nations namely Bangladesh, Bhutan, India and Nepal (BBIN) signed on 15 June 2015 to ensure cross border movement of personal, passenger and cargo vehicles. The presentation shows that in spite of having several implementation challenges, this MVA paves the way to much needed multimodal transport connectivity among South Asian countries to foster rapid and sustainable economic growth and development through inter-and-intra-regional cooperation.

1. Motor Vehicle Agreement Between
Bangladesh Bhutan India and
Nepal: Implications
Sajid Karim
Research Officer, BIISS
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MONTHLY REVIEW

2.  With a population of 1.6 billion people, South
Asian is one of the largest consumer bases of
goods and services.
 Countries of this region are experiencing
rapid economic growth. According to South
Asia Economic Focus, a World Bank report, the
growth rate in 2015 is more than 6%.
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Growing Importance of Connectivity in
South Asia: Necessity for an Agreement

3. Growing Importance of Connectivity in
South Asia: Necessity for an Agreement
4.30%
26%
42%
62%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
South Asia ASEAN East Asia European Union
Percentage
Economic Blocks
Intra-regional Trade as a Percentage of Total Trade
3

4. Background Of BBIN-MVA
Time & Venue Decision & Agreement
2004
12th SAARC Summit
Islamabad
Proposal Called for strengthening transport,
transit and communications links across
South Asia
2006
SAARC Regional
Multi-modal
Transport Study
(SRMS)
Report submitted to
SAARC Secretariat
Proposed 10 road corridors, 5 rail, 2
Inland Water Transport corridors, 10
maritime and 16 aviation gateways, for
regional transport connectivity.
2007
New Delhi
1st SAARC Transport
Ministers Meeting
Decided to pursue sub-regional
projects for greater connectivity
proposed by only three member states
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5. Background Of BBIN-MVA
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Date & Venue Decision or Outcome
July 2009
Colombo
2nd SAARC
Transport Ministers
Meeting
Approved recommendation of SAARC
IGGT to set up Expert Group to
negotiate and finalise draft text of
Regional Agreement on Motor Vehicles
for SAARC Member States
7-8 September 2014
Neemrana,
Rajasthan
Expert Group finalised Draft text of the
Regional Agreement on Motor Vehicles
for Member States
30 September 2014
New Delhi
The draft text was endorsed by the
SAARC IGGT

6. Background Of BBIN-MVA
Date & Venue Decision & Outcome
26-27 November 2014
18th SAARC Summit
Kathmandu
The Regional Agreement on Motor Vehicles
was supposed to be signed. But
due to Pakistan’s failure, the agreement was
not signed and transport ministers were
advised to settle the issue and give a report
within three months.
2-3 February 2015
Kolkata
BBIN-MVA, a parallel to the SAARC-MVA
was initiated
19 April 2015
Chennai
Transport Ministers of involved countries
were to lead the delegation for signing
BBIN-MVA with completed internal process.
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7. Background Of BBIN-MVA
Date & Venue Decision or Outcome
15 June 2015
Le Meridien Hotel
Thimpu
Bangladesh’s Obaidul Quader,
Bhutan’s Lyonpo DN Dhungyel, India’s
Nitin Jairam Gadkhari and Nepal’s
Bimalendra Nidhi signed Bangladesh
Bhutan India Nepal Motor Vehicle
Agreement (BBIN-MVA) on behalf of
their sides.
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8. BBIN-MVA: At a Glance
 Total Article – 17
 Article 1 consist of 18 definitions
 Article 2-17 consist of 63 sub articles
 Seamless movement of personal, public and
cargo vehicles
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9. Salient Features of BBIN-MVA
 Movement of Cargo, Passenger and Personal
vehicle among the four partner countries
(Article II.1)
 A permit (Article III.1) and valid documents
will be required (Article IV.2)
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10. Salient Features of BBIN-MVA
 At least one member of the vehicle must have
the ability to communicate in English or the
language of the concerned regions (Article IV.7)
 Strict prohibition in transportation of local
passengers and goods within the territory of
other signing country (Article VI.1)
 Except for an accident or break down; major
repair works are not permitted in another signing
country. (Article VI.3)
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11. Salient Features of BBIN-MVA
 The provisions of internal law or agreement
between signing countries will be applied in
case of border, land port/dry port formalities,
customs and quarantine formalities, taxation
and fees. (Article VII.1)
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12. Salient Features of BBIN-MVA
 A member of the driving crew has to notify
the concern in case of overstay in any partner
country (Article IX)
 Authorised officer of the signing countries
will have the right of inspection(Article X.1)
 Comprehensive insurance policy is required
for regular passenger and cargo vehicle.
(Article XI.2)
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13. Salient Features of BBIN-MVA
 Movement of prohibited and restricted goods
are not permitted (Article XIV.1)
 No effect on existing bilateral agreements or
on agreements between signing countries.
(Article XIV.5)
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14. Salient Features of BBIN-MVA
 Inclusion of new country is permitted upon
prior consensus among partner countries.
(Article XV.2.i)
 Any existing country can withdraw from this
agreement at any time (Article XV.2.i)
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15. Six Month Work Plan to Implement
BBIN-MVA
• Preparation of multilateral
agreements/protocols for the implementationJuly
• Formalisation of BBIN-MVAAugust
• Negotiation and approval of preparation of
multilateral agreements/protocolsSeptember
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16. Six Month Work Plan to Implement
BBIN-MVA
16
• Staged implementation
• BBIN Friendship Motor RallyOctober
• Trial run continuesNovember
• Installation of the prerequisites for
implementing the approved agreementDecember

17. Possible Routes for Bangladesh-India
17

18. Possible Routes for Bangladesh-Bhutan
18

19. Possible Routes for Bangladesh-Nepal
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20. Implications of the BBIN-MVA
 BBIN-MVA would allow people to move within
partner countries in an accelerated fashion,
raising the efficiency of trade and economic
exchange between signing countries
 According to the claims of the transport
ministers, transforming transport corridors into
economic corridors will potentially boost intra-
regional trade within South Asia by almost 60 per
cent and with the rest of the world by 30%.
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21. Implications of BBIN-MVA
Agreement will promote secure, economically
efficient and environmentally sound road
transport among the partner countries,
preparing these countries for further regional
integration
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22. Implications of BBIN-MVA
 Efficient cross border trade through
substituting time consuming process of
loading and unloading
 Reduce damage risk in the trading of
perishable goods
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23. Implications of BBIN-MVA
 Mongla and Chittagong ports will be opened
for landlocked regions; Nepal, Bhutan and
north-eastern portion of India
 New window of opportunity for Bangladesh
to earn foreign currency through transit and
port fee
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24. Implications of BBIN-MVA
 A developed and solvent NE India can be a
potential market for Bangladesh
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25. Challenges Ahead
 Infrastructural development
• US$ 08 billion/ BDT 64 thousand crore is
needed for 30 priority project
• Cost per kilometre for up-gradation of roads
to international standard in view of BBIN-MVA
in Bangladesh context is estimated to be
between BDT 25 crore to BDT 30 crore (USD$
3.7m)
• Road maintenance cost
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26. Challenges Ahead
 Land acquisition
• Scarcity of land
• High degree of eviction
• Resettlement and compensation
• No clear indication on the finance of
rehabilitation programme
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27. Challenges Ahead
Security concerns
• Insurgency prone India’s NE region can impose
serious threat to national security of
Bangladesh
• Drug and Narcotics smuggling.
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28. Challenges Ahead
Absence of concrete dispute settlement
mechanism
Absence of Multi-modal transport
connectivity
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29. Future Scope
 Article XV.II.1 of BBIN-MVA clearly specifies
that any other country may enter into the
agreement with prior consensus among
partner countries. This article creates great
opportunity to include countries like China
into this agreement
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30. Future Scope
 Importance of China to Bangladesh
• China is the largest trade partner of
Bangladesh
• Will reduce import cost
• Facilitate trade through land border
• Utilise full benefit of the future deep sea port
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31. Future Scope
 Energy trade among BBIN country
 Easing the process of power trade and inter-
grid connectivity with Nepal and Bhutan
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32. Future Scope
Huge investment within the partner countries
for infrastructure development both from
domestic and international enterprises
 Economic development and employment
generation
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33. Conclusion Remarks
Has to overcome numerous challenges
Will take time to become fully operationasile
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