TDS Desk:

The Tk 1,846 crore project aimed at establishing hi-tech parks across 12 districts is yet another example of how unplanned development initiatives in Bangladesh often face prolonged delays and increased costs.

Initiated in 2017 by the ousted Awami League government with an initial budget of Tk 1,796 crore—of which Tk 1,544 crore was a line of credit from India—the project has only achieved 14.34 per cent physical progress after seven years, with costs already rising by an additional Tk 50 crore.

Hi-tech parks, also known as technology parks, are specialised zones designed to provide the infrastructure, resources, and support necessary for technology-oriented companies to flourish. These facilities are intended to foster a skilled workforce, create job opportunities, and harness the potential of the information technology sector both domestically and globally.

However, the “Establishment of IT/Hi-Tech Park at District Level (in 12 Districts)” project under the Information and Communication Technology (ICT) Division has seemingly lost its direction. Initially planned for completion between July 2017 and June 2020, the project’s deadline was extended to June 2021 without additional funding after failing to meet the original timeline.

A subsequent budget increase raised the total cost to Tk 1,846 crore, with the new completion deadline set for June 2024—a deadline that has already been missed.

The parks are being constructed in Khulna, Barishal, Rangpur, Natore, Chattogram, Cumilla, Cox’s Bazar, Mymensingh, Jamalpur, Gopalganj, Dhaka and Sylhet.

Construction plans include seven-storey buildings in eight districts—Rangpur, Natore, Mymensingh, Jamalpur, Khulna, Barishal, Gopalganj, and Dhaka—and five-storey buildings in four districts—Cumilla, Chattogram, Cox’s Bazar and Sylhet—utilising steel structures.

Additionally, three-storey dormitory buildings with reinforced concrete (RCC) structures are planned in Natore, Rangpur and Cox’s Bazar, while cineplex buildings are planned in six districts—Natore, Rangpur, Gopalganj, Chattogram, Khulna and Dhaka.

Other activities under the project include land acquisition, the construction of additional infrastructure, the preparation of spaces for investors, workforce training and organising seminars, workshops and conferences to promote these hi-tech parks.

The Bangladesh Hi-Tech Park Authority (BHTPA), responsible for the implementation and management of the parks, is now considering further extending the project deadline to 2027 and increasing the budget to Tk 2,000 crore, as the June 2024 deadline has already passed.

As of June this year, both physical and financial progress stood at 33.92 per cent.

Project falling behind in every aspect

A recent monitoring report from the Implementation Monitoring and Evaluation Division (IMED) has highlighted significant delays in both the financial and practical execution of the project’s components.

The report attributes these setbacks to several factors, including a 17-month suspension of project activities due to the Covid-19 pandemic during the fiscal years 2019-20 and 2020-21, as well as insufficient allocations for VAT in the fiscal year 2018-19.

“The time spent on land acquisition has been significantly longer than anticipated, making it unlikely that the project will be completed within the stipulated timeframe,” the report said.

The analysis of the procurement process revealed that out of the 47 packages listed in the revised development project proposal (RDPP), 21 are designated for products, 15 for construction works and 11 for services.

Among the product packages, 16 have been completed, while work on the remaining five is still ongoing. Of the construction packages, only three have been finished, with 12 still in progress. All 11 service packages are yet to be completed.

IMED’s site inspections, secondary data analysis and practical assessments revealed that physical progress at various knowledge parks stands at 2.60 per cent in Cumilla, 0.54 per cent in Chattogram, 1 per cent in Cox’s Bazar (Ramu) and 4.55 per cent in Sylhet.

In terms of civil works, Khulna Knowledge Park has progressed to 29.30 per cent, Barishal 23.82 per cent, Gopalganj 15.68 per cent, and Dhaka (Keraniganj) 37.75 per cent. Additionally, Dr MA Wazed Miah Knowledge Park in Rangpur has reached 23.98 per cent completion, Natore 33.53 per cent, Mymensingh 37.21 per cent and Jamalpur 27.40 per cent.

Construction work at Cumilla, Chattogram, Cox’s Bazar and Sylhet only commenced in 2023.

Lack of planning and delays

Compared to the project’s annual allocation plan, the ADP allocations have been consistently insufficient. Furthermore, while a work plan was developed, it has not been properly aligned with the project’s implementation activities, resulting in significant challenges in carrying out several tasks.

For instance, in Sherkol Mouza of Singra Upazila, Natore, the Sheikh Kamal IT Training and Incubation Centre is situated on the same land where the authorised development project proposal (DPP) planned a cineplex.

However, construction cannot commence without acquiring an additional 2.03 acres of land. Complications have also arisen concerning the entrance to the project site.

Similarly, in Isakathi and Kashipur-Chahutpur mouzas, Barishal Sadar Upazila (4.18 acres), access issues have been reported for the Sheikh Kamal IT Training and Incubation Centre on the same land. In Chattogram’s Chandgaon and Char Rangamatia mouzas (9.551 acres), the land transfer process has yet to be completed, further stalling project work.

Delays in land acquisition have also impacted the tendering process at various locations. Issuance of tenders was delayed and in many cases, due to lack of participation by bidders, re-tendering was required.

Compounding these delays, the Indian consultancy firm responsible for the project failed to provide designs and estimates for various packages in 12 districts in a timely manner. As stipulated in the second Indian line of credit (LoC) agreement, all bidders for the project must be Indian. Given the constraints posed by the Covid-19 pandemic, all bidders for the re-tendered packages were from India and the bid submission deadlines had to be extended multiple times upon request from potential bidders.

Additionally, under the terms of the second Indian LoC agreement, 75 per cent of the equipment and materials were initially required to be imported from India. However, following requests from bidders, the Indian High Commission and EXIM Bank of India agreed to reduce this figure to 65 per cent, with the remaining 35 per cent sourced from Bangladesh. This adjustment, alongside the project’s extension, has contributed to increased costs.

Although construction in Mymensingh, Jamalpur, Rangpur, Natore, Dhaka, Gopalganj, Khulna, and Barishal was approved in October 2021, contracts for Cumilla, Chattogram, Cox’s Bazar, and Sylhet were not signed until July 2023, just one year before the latest project deadline.

In the first revised DPP, costs for various components have risen compared to the original proposal. For instance, land or site development and other non-residential works, which had no allocated funds in the original DPP, saw an increase in the revised plan. The original DPP allocated Tk 1,238 crore for construction and other essential works, while the revised DPP has raised this to Tk 1,504 crore, marking an increase of Tk 265.36 crore.

As per the second Indian LoC agreement, 65 per cent of the equipment and materials must be imported from India, with related customs duties, VAT, and income tax to be provided by the Bangladesh government. This requires an additional budget allocation of approximately Tk 16,830 crore from the Government of Bangladesh (GoB).