SASEC Road Connectivity Imphal Moreh Section Upgrade

The Cabinet Committee on Economic Affairs approved a project to upgrade and widen a 65 km section of National Highway 39 (NH-39) between Imphal and Moreh in Manipur, India. This project, costing Rs. 1630.29 crores, is funded by a loan from the Asian Development Bank (ADB) under the South Asian Sub-Regional Economic Cooperation (SASEC) Road Connectivity Investment Program.

The Imphal-Moreh section is a part of Asian Highway No. 01 (AH01) and serves as India's gateway to the East. The upgrade is expected to significantly boost trade, commerce, and tourism in the region. The seven-member SASEC, which includes India, Bangladesh, Bhutan, Maldives, Nepal, Sri Lanka, and Myanmar, was formed in 2001 to promote economic growth through enhanced cross-border connectivity. ADB provides support to the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement, and the Asian Highway Network is a cooperative project to improve highway systems in Asia.

Upgrading Connectivity: The Imphal-Moreh Highway Project and India's Act East Policy

In 2018, the Indian government, through its Cabinet Committee on Economic Affairs, greenlit a significant infrastructure project: the upgrade and widening of a 65-kilometer stretch of National Highway 39 (NH-39) connecting Imphal, the capital of Manipur, to Moreh, a border town on the India-Myanmar border. This seemingly localized project holds immense strategic and economic significance for India, representing a crucial step in its broader Act East Policy and its commitment to regional integration within South Asia and Southeast Asia. Financed through a Rs. 1630.29 crore loan from the Asian Development Bank (ADB) under the South Asian Sub-Regional Economic Cooperation (SASEC) Road Connectivity Investment Program, the Imphal-Moreh highway upgrade is more than just road construction; it is a tangible manifestation of India's ambition to become a major player in the evolving geopolitical landscape of Asia.

The immediate objective of the project is to improve the physical infrastructure of the Imphal-Moreh section of NH-39. This involves widening the existing two-lane highway to a four-lane configuration, improving road surfaces, and constructing necessary bridges and culverts. The improved infrastructure will significantly reduce travel time between Imphal and Moreh, facilitate smoother movement of goods and people, and enhance overall connectivity in the region. However, the long-term implications of this project extend far beyond the immediate benefits of improved transportation.

The Imphal-Moreh section is a vital link in Asian Highway No. 01 (AH01), a transcontinental route that connects countries across Asia and Europe. As India's eastern gateway, the Imphal-Moreh section plays a crucial role in facilitating trade and commerce between India and Southeast Asia, particularly Myanmar, Thailand, and other ASEAN nations. The upgrade of this section is expected to boost trade volumes, attract investment, and promote tourism in the region, contributing to economic growth and development.

The project is also closely linked to the South Asian Sub-Regional Economic Cooperation (SASEC) program, a regional initiative aimed at promoting economic cooperation and connectivity among seven South Asian countries: Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka, and Myanmar. Established in 2001, SASEC focuses on improving infrastructure, facilitating trade and transit, and promoting energy cooperation among its member countries. The ADB serves as the lead financier of SASEC projects, providing financial and technical assistance to support regional integration efforts.

The Imphal-Moreh highway upgrade is a key component of the SASEC Road Connectivity Investment Program, which aims to improve road infrastructure in the region and facilitate cross-border trade and transit. By upgrading the Imphal-Moreh section, the project will enhance connectivity between India and Myanmar, facilitating trade and investment flows and promoting regional economic integration.

Furthermore, the project is closely aligned with the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement, a sub-regional initiative aimed at facilitating the seamless movement of passenger, personal, and cargo vehicular traffic between and among the BBIN countries. The BBIN MVA seeks to simplify customs procedures, harmonize transit regulations, and develop common infrastructure standards to promote cross-border trade and connectivity. While Bangladesh, India, and Nepal have approved operating procedures for passenger vehicle movement under the BBIN agreement, Bhutan has signed the agreement but has yet to ratify it, primarily due to environmental concerns. The Imphal-Moreh highway upgrade will contribute to the objectives of the BBIN MVA by improving road infrastructure and facilitating cross-border movement of vehicles between India and Myanmar.

The Asian Highway Network, of which AH01 is a part, is a collaborative project involving countries across Asia and Europe, spearheaded by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The primary objective of the Asian Highway Network is to develop and improve highway systems in Asia, promoting regional connectivity and facilitating trade and tourism. The network is one of the three pillars of the Asian Land Transport Infrastructure Development (ALTID) project, endorsed by ESCAP in 1992, which also includes the Trans-Asian Railway (TAR) and facilitation of land transport projects. The ALTID project aims to create an integrated land transport system in Asia, promoting economic growth and regional integration.

Historical Context: India's Look East/Act East Policy

The Imphal-Moreh highway upgrade cannot be fully understood without considering the historical context of India's engagement with Southeast Asia. Since the early 1990s, India has pursued a "Look East" policy, later upgraded to an "Act East" policy under the Modi government, aimed at strengthening its economic, political, and strategic ties with Southeast Asian countries. The Look East/Act East policy represents a significant shift in India's foreign policy orientation, moving away from its traditional focus on South Asia and towards a more proactive engagement with its eastern neighbors.

Several factors have contributed to India's growing interest in Southeast Asia. First, the end of the Cold War and the rise of globalization have created new opportunities for economic cooperation and trade between India and Southeast Asian countries. Second, the rapid economic growth of Southeast Asian economies has made them attractive destinations for Indian investment and trade. Third, India sees Southeast Asia as a key region for promoting its strategic interests, particularly in the face of China's growing influence in the region.

The Look East/Act East policy has focused on several key areas, including trade and investment, infrastructure development, security cooperation, and cultural exchanges. India has signed free trade agreements with several Southeast Asian countries, including Singapore, Thailand, and Malaysia, and is actively negotiating a comprehensive economic partnership agreement with the ASEAN bloc. India has also invested in infrastructure projects in Southeast Asia, such as the India-Myanmar-Thailand Trilateral Highway and the Kaladan Multi-Modal Transit Transport Project, aimed at improving connectivity and facilitating trade between India and Southeast Asia.

The Imphal-Moreh highway upgrade is a direct manifestation of India's Act East policy, as it aims to improve connectivity between India and Myanmar, facilitating trade and investment flows and promoting regional economic integration. The project is also strategically important, as it will enhance India's access to Southeast Asian markets and strengthen its position as a major player in the region.

The Act East Policy is not simply about economics. There are also significant strategic considerations. India views Southeast Asia as a crucial counterweight to China's growing influence in the Indo-Pacific region. By strengthening its ties with Southeast Asian countries, India aims to promote a multipolar world order and ensure that no single power dominates the region.

In this context, the Imphal-Moreh highway upgrade is a strategic project that will enhance India's ability to project power and influence in Southeast Asia. The improved connectivity will facilitate the movement of goods and personnel, allowing India to respond more quickly to regional crises and protect its interests in the region.

Key Actors and Their Roles

Several key actors are involved in the Imphal-Moreh highway upgrade project, each with their own roles and responsibilities:

• Cabinet Committee on Economic Affairs: This committee of the Indian government is responsible for approving major economic projects, including the Imphal-Moreh highway upgrade. The committee's approval is essential for securing funding and ensuring that the project aligns with the government's overall economic priorities.

• Asian Development Bank (ADB): The ADB is providing financial and technical assistance for the project under the SASEC Road Connectivity Investment Program. The ADB plays a crucial role in project appraisal, monitoring, and evaluation, ensuring that the project is implemented efficiently and effectively.

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• National Highways Authority of India (NHAI): The NHAI is responsible for the construction and maintenance of national highways in India, including the Imphal-Moreh section of NH-39. The NHAI oversees the project implementation, ensuring that it meets quality standards and is completed on time and within budget.

• Government of Manipur: The state government of Manipur plays a key role in land acquisition, environmental clearances, and coordination with local communities. The state government's support is essential for ensuring the smooth implementation of the project.

• Local Communities: Local communities along the Imphal-Moreh highway are directly affected by the project. Their participation and support are crucial for ensuring that the project is implemented in a socially responsible and environmentally sustainable manner.

SASEC: A Framework for Regional Cooperation

The South Asian Sub-Regional Economic Cooperation (SASEC) program provides a framework for regional cooperation among its seven member countries: Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka, and Myanmar. SASEC focuses on improving infrastructure, facilitating trade and transit, and promoting energy cooperation among its member countries. The program is guided by a strategic vision that aims to promote economic growth, reduce poverty, and improve the quality of life in the region.

SASEC projects are typically financed through loans and grants from the ADB, which also provides technical assistance to support project implementation. The SASEC program has achieved significant progress in several areas, including:

• Infrastructure Development: SASEC has supported the construction and upgrade of roads, railways, ports, and energy infrastructure in the region, improving connectivity and facilitating trade and transit.

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• Trade Facilitation: SASEC has worked to simplify customs procedures, harmonize transit regulations, and promote cross-border trade among its member countries.

• Energy Cooperation: SASEC has supported the development of regional energy markets and the promotion of cross-border energy trade.

The Imphal-Moreh highway upgrade is a key component of the SASEC Road Connectivity Investment Program, contributing to the program's overall objectives of improving infrastructure and facilitating trade and transit in the region.

Asian Highway Network: Connecting Asia and Europe

The Asian Highway Network is a collaborative project involving countries across Asia and Europe, spearheaded by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The primary objective of the Asian Highway Network is to develop and improve highway systems in Asia, promoting regional connectivity and facilitating trade and tourism.

The Asian Highway Network comprises a network of designated highways that connect major cities and economic centers across Asia and Europe. The network is designed to facilitate cross-border trade and transit, promote regional tourism, and enhance cultural exchange.

The Imphal-Moreh section of NH-39 is a vital link in Asian Highway No. 01 (AH01), a transcontinental route that connects countries across Asia and Europe. The upgrade of this section is expected to improve connectivity between India and Myanmar, facilitating trade and investment flows and promoting regional economic integration.

BBIN Motor Vehicle Agreement: Facilitating Cross-Border Movement

The Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement is a sub-regional initiative aimed at facilitating the seamless movement of passenger, personal, and cargo vehicular traffic between and among the BBIN countries. The BBIN MVA seeks to simplify customs procedures, harmonize transit regulations, and develop common infrastructure standards to promote cross-border trade and connectivity.

While Bangladesh, India, and Nepal have approved operating procedures for passenger vehicle movement under the BBIN agreement, Bhutan has signed the agreement but has yet to ratify it, primarily due to environmental concerns. The Imphal-Moreh highway upgrade will contribute to the objectives of the BBIN MVA by improving road infrastructure and facilitating cross-border movement of vehicles between India and Myanmar.

The BBIN MVA is seen as a potential game-changer for regional trade and connectivity, as it will significantly reduce transit times and costs, promoting economic growth and regional integration. However, the agreement faces several challenges, including:

• Environmental Concerns: Bhutan's concerns about the potential environmental impact of increased cross-border traffic need to be addressed to ensure the agreement's long-term sustainability.

• Infrastructure Gaps: Infrastructure gaps in some areas, particularly in border regions, need to be addressed to ensure the smooth implementation of the agreement.

• Security Concerns: Security concerns related to cross-border movement of vehicles need to be addressed to ensure the safety and security of people and goods.

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Organizations Involved: ADB and ESCAP

The Asian Development Bank (ADB) and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) are two key organizations involved in the Imphal-Moreh highway upgrade project.

The ADB is a multilateral development bank that provides financial and technical assistance to developing countries in Asia. The ADB's mission is to reduce poverty and improve the quality of life in the region. The ADB provides loans, grants, and technical assistance to support development projects in various sectors, including infrastructure, energy, education, and health.

In the case of the Imphal-Moreh highway upgrade, the ADB is providing a loan of Rs. 1630.29 crores under the SASEC Road Connectivity Investment Program. The ADB also provides technical assistance to support project implementation, ensuring that it meets quality standards and is completed on time and within budget.

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional arm of the United Nations for the Asia-Pacific region. ESCAP's mission is to promote economic and social development in the region. ESCAP conducts research, provides technical assistance, and facilitates intergovernmental cooperation to address key development challenges facing the region.

ESCAP played a key role in the development of the Asian Highway Network, providing a platform for countries across Asia and Europe to collaborate on the development and improvement of highway systems. ESCAP also supports the implementation of the Asian Land Transport Infrastructure Development (ALTID) project, which aims to create an integrated land transport system in Asia.

Stakeholder Positions: India, ADB, and SASEC Members

Several stakeholders have a vested interest in the Imphal-Moreh highway upgrade project, including:

• India: India is committed to improving regional connectivity and promoting economic integration in South Asia and Southeast Asia. India sees the Imphal-Moreh highway upgrade as a key component of its Act East policy, as it will improve connectivity between India and Myanmar, facilitating trade and investment flows and promoting regional economic integration.

• ADB: The ADB is committed to supporting sustainable and inclusive development in Asia and the Pacific. The ADB sees the Imphal-Moreh highway upgrade as a key project that will contribute to economic growth, poverty reduction, and improved quality of life in the region.

• Other SASEC Member Countries: Other SASEC member countries are committed to enhancing regional cooperation and connectivity. They see the Imphal-Moreh highway upgrade as a key project that will contribute to improved infrastructure and facilitated trade and transit in the region.

Broader Implications: Political, Economic, and Strategic

The Imphal-Moreh highway upgrade has several broader implications, including:

• Political: The project will strengthen India's ties with Southeast Asian countries and enhance its strategic influence in the region. The improved connectivity will facilitate political and diplomatic engagement, allowing India to play a more active role in regional affairs.

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• Economic: The project will boost trade and investment, create jobs, and promote economic growth in the region. The improved connectivity will reduce transit times and costs, making it easier for businesses to trade and invest across borders.

• Strategic: The project will enhance India's strategic position in the region, allowing it to project power and influence more effectively. The improved connectivity will facilitate the movement of goods and personnel, allowing India to respond more quickly to regional crises and protect its interests in the region.

• Security: The project could potentially improve border security and facilitate the movement of goods and people across borders, but also poses risks. Improved infrastructure can be used to facilitate illicit trade, drug trafficking and other illegal cross-border activities.

Connections to Ongoing Issues: Trilateral Highway and BRI

The Imphal-Moreh highway upgrade is closely connected to several ongoing issues in the region, including:

• India-Myanmar-Thailand Trilateral Highway: The Imphal-Moreh highway is a key component of the India-Myanmar-Thailand Trilateral Highway, a major infrastructure project that aims to connect India with Southeast Asia through a network of highways. The Trilateral Highway is expected to boost trade and tourism in the region, promoting economic growth and regional integration.

• Kaladan Multi-Modal Transit Transport Project: The Imphal-Moreh highway is also connected to the Kaladan Multi-Modal Transit Transport Project, a project that aims to connect India with its northeastern states through a waterway and road transport system via Myanmar. The Kaladan project is expected to provide an alternative route for trade and transit between India and its northeastern states, reducing reliance on the existing land route through the "chicken's neck" corridor in West Bengal.

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• China's Belt and Road Initiative (BRI): The Imphal-Moreh highway upgrade is also seen as a response to China's Belt and Road Initiative (BRI), a massive infrastructure development project that aims to connect China with countries across Asia, Africa, and Europe. India has expressed concerns about the BRI, particularly its potential impact on regional security and sovereignty. The Imphal-Moreh highway upgrade is seen as a way for India to counter China's influence in the region and promote its own vision of regional connectivity.

Historical Connections: The Silk Road

The concept of regional connectivity through infrastructure development is not new. Historically, the Silk Road played a crucial role in connecting East and West, facilitating trade, cultural exchange, and the spread of ideas. The Silk Road was a network of trade routes that connected China with Europe, the Middle East, and other parts of Asia.

The Imphal-Moreh highway upgrade can be seen as a modern-day equivalent of the Silk Road, as it aims to connect India with Southeast Asia through a network of highways, promoting trade, investment, and cultural exchange.

Future Outlook: Connectivity and Competition

The future outlook for regional connectivity in South Asia and Southeast Asia is promising, with several major infrastructure projects planned or underway. However, the region also faces challenges, including:

• Geopolitical Competition: Geopolitical competition between India and China could hinder regional connectivity efforts, as both countries vie for influence in the region.

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• Security Concerns: Security concerns related to cross-border movement of people and goods could also pose challenges to regional connectivity.

• Environmental Concerns: Environmental concerns related to infrastructure development need to be addressed to ensure the sustainability of regional connectivity efforts.

Despite these challenges, the Imphal-Moreh highway upgrade represents a significant step towards improved regional connectivity and economic integration in South Asia and Southeast Asia. The project is a testament to India's commitment to its Act East policy and its vision of a more prosperous and interconnected region. The continued focus on improving regional connectivity through infrastructure development and trade facilitation holds the potential for significant economic and social benefits for all countries in the region. The potential expansion of initiatives like the BBIN MVA to include more countries could further accelerate regional integration. However, increased competition with China's BRI for infrastructure projects in South Asia and Southeast Asia is also likely, requiring careful strategic planning and resource allocation.