New Delhi, Dec. 23: India today agreed to start work on the 1,360-km-long trilateral highway with Myanmar and Thailand, reflecting its growing stakes in Southeast Asia and a desire to establish communication links with neighbours in the region.

Foreign minister Yashwant Sinha, who met his counterparts from the two countries this afternoon, said efforts were on to give the required political push to the $700-million project. “It’s a win-win situation for the people of all the three countries,” he added.

Once completed, the highway is expected to ease the flow of goods and people across the borders. The three countries decided to start work on the first phase from early next year.

Sinha said the first phase — from Moreh in India to Mae Sot in Thailand through Bagan in Myanmar — would include construction of 78 km of new roads and upgrading about 400 km of single-lane roads into two-lane ones.

Surakiart Sathirathai of Thailand and U. Win Aung of Myanmar were with Sinha when he made the announcement at a news conference.

The foreign minister said the first phase would cost about $252 million of which India will contribute about $100 million, Thailand about $90 million and Myanmar the rest. The second phase would cost about $154 million and the final phase $284 million.

The decision to construct the highway was taken in Yangon in April 2002 when the foreign ministers met to discuss transport linkages.