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This project will reduce distance from [[Kolkata]] to [[Sittwe]]e by approximately 1328 km and will reduce the need to transport good through the narrow [[Siliguri]] corridor, also known as [[Chicken's Neck]]. This will bring enhanced connectivity, shortened trade routes, reduced logistical end-to-end delivery time, economic prosperity and employment opportunities to the [[Mizoram]] and rest of the [[North East India]], as well as [[Arakan]] and [[Shin]] states of [[Mayanmar]].
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The project is being piloted and funded by the [[Ministry of External Affairs (India)]]. The preliminary feasibility studies were carried out by [[RITES|Rail India Technical and Economic Services (RITES)]]. Construction work on [[Sittwe]] port and the boat jetty in [[Paletwa]], as well as the dredging work, will be executed by the [[Inland Waterways Authority of India]] (IWAI), with Essar Projects Ltd, a division of the [[Essar Group]] appointed in May 2010 as the main contractor.<ref>{{cite web|first=Arakan River|title=Kaladan Multi-Modal Transit Transport Project|url=http://www.arakanrivers.net/?page_id=135|accessdate=11 August 2012}}</ref>
===Major Components of the Project===
==== Port component ====
* Construction of an integrated Port & Inland Water Transport (IWT) terminal at [[Sittwe]] including [[Dredging]].
==== Inland Water Transport (IWT) components ====
* Development of navigational channel along [[Kaladan River]] from [[Sittwe]] to [[Paletwa]] (158 km).
* Construction of an ""[[Inland navigation|Inland Water Transport (IWT)]] to Road Highway"" transhipment terminal at [[Paletwa]].
* Construction of 6 IWT [[Barge]]s (300 Ton capacity) for transportation of cargo between [[Sittwe]] and [[Paletwa]].
==== Highway component ====
* Construction of a road highway from [[Paletwa]] to India-Myanmar border for 110 kms. by [[IRCON International]]
===Framework for Project Implementation===
* The [[Ministry of External Affairs (India)]] (MIA) is the nodal agency on [[India]]n side
* The [[Ministry of Foreign Affairs (Burma)]] (MFA) is the nodal agency on the [[Myanmar]] side.
* Framework Agreement and two protocols (Protocol on Transit Transport and Protocol on maintenance) signed by the two sides on 2nd April 2008.
* Article 4 of the Framework Agreement provides for appointment of a [[Management consulting|Project Development Consultant (PDC)]].
* [[Inland Waterways Authority of India]] (IWAI) has been appointed as the PDC vide agreement dated 19.3.2009 between [[Ministry of Foreign Affairs (Burma)]] (MEA) and [[Inland Waterways Authority of India]] (IWAI). The responsibility of [[Inland Waterways Authority of India]] (IWAI) as [[Management consulting|Project Development Consultant (PDC)]] is at present for implementation of the [[Port]] & [[Inland navigation|Inland Water Transport (IWT)]] components.
==Current Status==
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