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Infrastructure & Connectivity Projects: Korean-Financed Pipeline Analysis
This analysis highlights the strategic partnership between Bangladesh and Korea, with Korea emerging as the most significant infrastructure partner, contributing over $18 billion to various projects. The report outlines a substantial project pipeline across key sectors: Transportation: A $15.2 billion market with a pipeline of an additional $8.5 billion in metro, highway, railway, and bridge projects. Projects include the $1.24 billion Kalurghat Rail-cum-Road Bridge and the $7.94 billion Dhaka Metro expansion. Power & Energy: A target market of $8.5 billion, with Korean strengths in smart grid systems and renewable energy. Digital Infrastructure: A $3.2 billion market where Korea holds a 40% share, with projects in e-governance and cybersecurity. The document details the financing architecture, including concessional loans from Korea's EDCF (Economic Development Cooperation Fund) with interest rates as low as 0.01% and 40-year repayment periods. It also introduces the new EDPF (Economic Development Promotion Facility) model, which uses market-funded loans with government subsidies to finance large-scale projects like the $2.5 billion Dhaka-Chittagong Expressway. Despite the large pipeline, the report identifies key implementation challenges, such as land acquisition and environmental clearance delays, as well as weak Public-Private Partnership (PPP) frameworks. A roadmap for acceleration is proposed, which includes fast-tracking land acquisition, streamlining environmental clearances, and establishing a multi-agency digital platform. The conclusion emphasizes that the partnership offers Bangladesh not only concessional capital but also a pathway for systematic modernization, positioning the country as a regional hub and Korea's largest infrastructure investment destination globally. Bangladesh Investment Gateway (BIG) www.bigbd.org
Infrastructure & Connectivity Projects: Korean-Financed Pipeline Analysis
- 1. Infrastructure & Connectivity: Infrastructure& Connectivity: Korean-Financed Pipeline Analysis Korean-Financed Pipeline Analysis Bangladesh-Korea Partnership: $18+ Billion in Infrastructure Development Rashedur Rahman & Ehsan Tanim September 2025 BIG www.bigbd.org
- 2. Strategic Partnership Koreais Bangladesh's most significant infrastructure partner with $18+ billion in projects Concessional Finance EDCF rates as low as 0.01% with 40-year repayment periods Implementation Challenges • Land acquisition delays (24+ months) • Environmental clearance (18-24 months) • Weak PPP frameworks Priority Corridors Dhaka Metro expansion $7.94B Kalurghat connectivity $1.24B Dhaka-Chittagong corridor $7.3B Power grid modernization $660M Digital infrastructure $210M Executive Summary BIG www.bigbd.org
- 3. Tier 1: UnderConstruction/Operational $2.2B Kalurghat Rail-cum-Road Bridge Total Cost: $1.24B Korean Financing:$815M (EDCF + EDPF) Strategic Impact:Connects Chittagong port with Cox's Bazar Timeline: Completion: Dec 2030 Under Construction Railway Signaling Modernization Total Cost: $61M Korean Financing:100% EDCF Scope: Ishurdi-Parbatipur section modernization Technology: Korean digital signaling technology Operational Tier 2: Financing Secured/Advanced Planning $12.94B MRT Line-4 Kamalapur- Narayanganj Total Cost: $2.84B Korean Financing:$2.125B Route: 16km via Sayedabad, Jatrabari Financing Terms:EDCF at 0.01-0.05% interest Advanced Planning MRT Line-5 Southern Route Total Cost: $5.1B Financing: $1.5B Korean + $3B ADB Scale: 17.2km Gabtoli- Dasherkandi route Timeline: Construction start 2026 Advanced Planning Dhaka-Chittagong Expressway Total Cost: $2.5B Korean Financing:$1.8B EDPF Economic Impact:Links two largest economic centers Innovation: Largest EDPF deployment globally Financing Secured Major Infrastructure Pipeline Analysis BIG www.bigbd.org
- 4. Sectoral Opportunity Matrix BIGwww.bigbd.org Transportation Infrastructure $15.2B market 35% Korean share Current Involvement $4.2B across 16 projects Pipeline Potential Additional $8.5B in metro, highway, railway, bridge projects Competitive Advantage Metro technology leadership, bridge engineering expertise Key Barriers Land acquisition delays, environmental clearances Power & Energy $8.5B market 25% Korean share Korean Strengths Grid technology, renewable energy, smart grid systems KEPCO Hanwha Solar OCI Market Catalysts 10% renewable energy target by 2025, grid modernization Breakthrough Opportunity 500MW+ utility-scale solar projects Digital Infrastructure $3.2B market 40% Korean share Korean Leadership ICT infrastructure, e-governance, cybersecurity Government Alignment Digital Bangladesh 2025, Smart Bangladesh 2041 Scaling Opportunity National data centers, government cloud, smart cities Active Projects Digital statistics platform ($10M), AI innovation hub
- 5. Geographic Investment Concentration BIGwww.bigbd.org Geographic Distribution of Korean Infrastructure Investment Geographic Distribution of Korean Infrastructure Investment Dhaka Division $8.5B 47% of total Project Density 12 major projects including 3 metro lines, power grid, digital infrastructure Strategic Rationale 22 million population 35% of national GDP, government seat Implementation Readiness Highest 9/10 due to established project management capabilities Chittagong Division $3.2B 18% of total Economic Focus Port modernization, industrial connectivity, tourism infrastructure Anchor Projects Kalurghat Bridge, potential Chattogram Metro Rail, port automation Korean Company Presence Samsung C&T, Hyundai E&C regional offices Dhaka-Chittagong Corridor $4.8B 27% of total Connectivity Priority Expressway, railway double-tracking, logistics hubs Trade Impact Serves 70%+ of Bangladesh's international trade, container traffic PPP Potential Revenue-generating toll roads, logistics parks, industrial zones
- 6. PPP Structuring &Risk Mitigation Framework BIG www.bigbd.org Critical Risk Areas 8-9/10 Construction Risk Land acquisition delays averaging 24+ months, affecting project timelines Regulatory/Policy Risk Frequent policy changes, implementation gaps, multi-agency approvals Demand/Revenue Risk Uncertainty in projected user numbers and revenue streams Risk Mitigation Strategies Pre-approved Land Banks Dedicated land acquisition units with fast-track procedures Policy Stability Frameworks Grandfathering clauses, single-window approvals, political commitment Revenue Guarantee Mechanisms Government minimum revenue guarantees, take-or-pay PPAs High Korean Acceptance Areas Technology Risk Korean technological superiority provides comfort 9/10 O&M Risk Korean companies' operational expertise 9/10 Currency Risk Local financing options, development bank support 8/10
- 7. Financing Architecture &Bankability Analysis BIG www.bigbd.org EDCF Framework % Interest Rates 0.01-0.05% for infrastructure projects Repayment Terms 40 years with 15-year grace period Tie Requirements Korean contractor/equipment (70-80%) Evaluation Criteria IRR >12%, development impact EDPF Innovation Model Structure Market-funded loans with government subsidies $ Scale Up to $7B allocation 2023-2027 Target Projects Large-scale infrastructure requiring commercial viability Korean Advantage Enables private sector participation with concessional benefits Co-financing Partnerships ADB Integration MRT Line-5 ($3B ADB + $1.5B Korean) World Bank Potential Power sector, digital infrastructure alignment Private Sector Korean companies equity participation, local financial institutions PPP Structure Innovation Revenue Models • Transport: Toll + availability payments • Power: Capacity + energy payments • Digital: Service fee + data monetization Risk Allocation • Construction: Korean EPC contractors assume technical risks • Operation: Korean O&M with local capacity building • Demand: Government guarantees with upside sharing
- 8. Implementation Acceleration Roadmap BIGwww.bigbd.org Target: 12 months Land Acquisition Fast-Track System Challenge: 24-month delays Pre-approved Land Banks Strategic land reserves for priority infrastructure corridors Alternative Site Planning Multiple location options to bypass acquisition bottlenecks Digital Land Records Blockchain-based title verification and ownership tracking Korean Support: EDPF infrastructure development financing Target: 9-12 months Environmental Clearance Streamlining Challenge: 18-24 month EIA approval Standardized Frameworks Pre-approved EIA templates for similar project types Korean Monitoring Systems Advanced environmental impact prediction technology Risk-Based Assessment Expedited processes for low-impact infrastructure projects Success Metric: 50% reduction in approval time Target: 40% faster Multi-Agency Coordination Platform Challenge: 12-15 agencies involved Single Digital Platform Korean-supported unified system for inter- agency coordination Parallel Processing Concurrent approvals instead of sequential requirements SMART Work System Korean workflow management adapted for Bangladesh infrastructure Implementation: Korean technical assistance + local capacity building
- 9. Success Metrics &Performance Targets BIG www.bigbd.org Bankability Goals 18-Month Financial Closure 3-5 Projects Total value of $3-5B Approval Time 25% Reduction From 18-24 to 12-18 months Cost Optimization 20% Reduction Decrease in cost overruns Private Investment 1:0.6 Ratio Private-public investment leverage Implementation Targets 24-Month Construction Start 2-3 Projects Major projects begin implementation Technology Transfer 5+ Solutions Korean technology solutions deployed Local Capacity 500+ Engineers Bangladeshi engineers trained Regional Impact 2 Projects Infrastructure outside Dhaka-Chittagong
- 10. Conclusion BIG www.bigbd.org StrategicPartnership Overview Comprehensive Modernization Bangladesh's most significant infrastructure opportunity across transport, power, digital, and urban development sectors Unprecedented Financing Concessional capital combined with world-class Korean engineering expertise Global Significance Largest bilateral infrastructure program in Bangladesh's development history Key Takeaway Korea's partnership offers Bangladesh not only concessional capital but also a systematic modernization pathway Policy Reform Catalysts PPP Framework • Viability gap funding • Contract standardization • Dispute resolution Regulatory Streamlining • Single window system • Risk-based regulation • Performance monitoring Capacity Building • Korean technical assistance • Local workforce training • Knowledge transfer Future Outlook $18+B Infrastructure Investment 25-40% Timeline Reduction $3-5B Additional Private Investment Regional Hub Status Bangladesh positioned as Korea's largest infrastructure investment destination globally Connectivity Transformation Enhanced regional connectivity through smart grid, metro rail, and digital governance solutions