Digital Bangladesh Vision 2021 : The Role of BASIS and BHTPA on the Development of Hi-Tech Park Projects
IT Infrastructure Development Through the Public Private Partnership (PPP) Model, ICT Sector Bangladesh Government

Overview
Bangladesh Association of Software and Information Services (BASIS) is the national trade body for Software & IT Enabled Service industry of Bangladesh. Established in 1997, the association has been working with a vision of developing vibrant software & IT service industry in the country.
BASIS started its journey with only 17 charter members. Today the membership stands more than Nine hundred. Members of BASIS account for the lion share of the total software & IT services revenue of the country.Additionally, BASIS members with ITES enabled were shortlisted to be Park Developer (s) for all government Hi-Tech Park Projects.
In 1999 Bangladesh government decided to establish a Hi-Tech Park to harness the benefit of advance technology by creating conductive investment environment in Kaliakoir, Gazipur. Government has allocated 232 acres of Land for creating a world-class business environment for Hi-Tech Industry especially for IT, ITES, Biotech, Telecommunication, electronics and R&D.
On 7th October 2010, the executive committee of BASIS and Hi-Tech Park Authority (BHTPA), decided to implement the project through Public Private Partnership (PPP) model because it gives Park Developer (s) the responsibility to design and develop all necessary infrastructures by its own resource.
The Appointed Park developer (s) will also be responsible to manage and operate the Park for specific period under a concession agreement. All cost for establishing infrastructure, managing and operating the park will be borne by Park Developer. The Revenue collected by the Park developer as rent and service charge from the individual investors will be shared by BHTPA and Park developer in a Predetermine Ratio.
The Estimated Capital Cost was between USD 200 to USD 500 million and the Project Implementation Period of this first phase was from January 2012 to December 2016 (Concession Period 35 year).
In the last three years Bangladesh has seen tremendous growth in the information and communications technology (ICT) sector. It has a market of 160 million plus people, where consumer spending is around USD 130 billion plus and growing at 6 percent annually. After telcos launched 3G services in 2013, internet penetration in Bangladesh grew by 22 percent by the end of 2014. Of the 66.8 million active Internet subscribers (BTRC, Sept 2016), nearly 96 percent are mobile users and 10 million smartphone users. With growing Internet connectivity, availability of cheaper smartphones, and rapid rise in social networking (23 million plus Facebook users), we have seen an increasing emergence of digital savvy consumers.
Here are three main reasons for growth in ICT sector.
I. Government Policy and Awareness
In the last three years the Government of Bangladesh has played a major role in promoting the ICT sector as the next growth engine for Bangladesh. A major role was played by a2i, the key driver from the Prime Minister’s Office in deploying the rapid expansion of technologies in delivering public services to citizens. Some of the key milestones of a2i have been the following:
- 8.5 million students learning from multimedia content developed by 100,000 teachers
- 105 Digital Talking textbooks for visually disabled students
- 103 innovations incubated through Service Innovation Fund
- USD 28.15 million earnings for Digital Centre Entrepreneurs
The ICT ministry played a phenomenal role in creating awareness and programs to transform ideas into reality, e.g. through Digital World, ICT Expo, National Hackathon, Connecting Startups Bangladesh, etc.
Recent policies formulated by the government have been very helpful in enhancing the attractiveness of the ICT sector. Key incentives include:
- 100 percent foreign ownership of companies
- Small-cap exchange for easier raising of capital/listing on capital markets
- Software park which facilitates high speed internet connection trade facilities, similar to Export Processing Zones (EPZs)
Building a thriving ecosystem requires close collaboration between the public and private sectors. As we move along this path, we predict that we will develop a closer working relationship between the public and private sector.
II. BASIS Policy and Advocacy
The software association of Bangladesh, popularly known as BASIS, brought focus on startup activities in Bangladesh. It initiated well-known programmes like the BASIS Soft Expo, BASIS Student Forum, BASIS e-commerce alliance, etc., to create awareness about startups and facilitate the growth of this sector. BASIS also helped shape the policy framework of the ICT sector. Some of the policies are outlined below:
- Seven-year tax holiday for registered IT companies
- Private equity and venture capital policy framework implemented as of July 2015
- VAT for e-commerce reduced to nil
III. Private Sector Movement at the Heart
Telcos: Telecom firms have been one of the major stakeholders as they made the infrastructure investment in 3G that practically jumpstarted the Internet-enabled businesses in Bangladesh. Local private device suppliers played the second biggest role in bringing smartphone prices down by locally manufacturing them. Last year three major telcos either started an accelerator programme or sponsored one to promote digital business in Bangladesh, e.g. the Grameenphone Accelerator which provided access to deal flow.
According to a recent study by LCP, the sectors most preferred by investors are mobile financial services (83 percent), health tech (67 percent), and C2C commerce (50 percent). Local startups that recently got funded include: Sheba Group (Sheba Technologies Limited, Sheba ICX Limited), Priyo.com, Magnito Digital, GObd, PayWell, Solaric, SureCash, Styleline, Direct Fresh, AjkerDeal, Eshosikhi, Pathao, Bagdoom,BPCL, Brian Station, Studio 71, Smart Compare, Light Castle Partners, and Doctorola.
Startups: There has been a significant increase in new startups and founders joining the arena. It is not limited to first-time entrepreneurs only, but people with professional work experience are taking risk to join the startup life. A recent study by Light Castle Partners (LCP) found the top three sectors where startups are currently working now to be e-commerce, tech and impact business.
Ecosystem Builders: The startup ecosystem originally started in 2013 with main advocates being Startup Dhaka also know as SD Asia, Team Engine, Hub Dhaka, EMK Center, Better Stories, Preneur Lab, etc. Most of these companies are involved in mentoring and accelerator activities which help startups take their business to next stage.
Matching government grant to funds raised by startups
The Singaporean government has launched initiatives like the Business Angels Scheme (BAS), which matches any investment up to SGD 2 million (USD 1.32 million) that a startup raises from a business angel investor through its investment arm Spring Seeds Capital Pte Ltd. Bangladesh government has similar grants for technology companies, like the Innovation Fund.
Design, Build, Finance, Own, Operate and Transfer
The objective of BHTPA is to look for interested and prospective Developer (s) for developing a Hi-Tech Park on DBFOOT for a predetermined concession period. Developer shall be focus for IT/IT Enabled Services, Bio-Technology, Electronics Design and Manufacturing companies at the Hi -Tech Park. BHTPA will give precedence to BASIS members to be participate as developer or developer’s partner from the private sector. BASIS will shortlist and select industry leaders from their vast member’s database, who prima facie have technical and financial strength to undertake this project and have proven track record in
- Developing and Operating Hi-Tech Parks (HTP) / IT Parks (ITP) / Software Technology Parks (STP) / Specialized Economic Zones (SEZ)
- Developing part of a zone (s) of HTP/ITP/STP/SEZ projects under a master plan, commensurate with the size and nature of proposed Hi-Tech Park at Kaliakoir (KHTPA), Gazipur, Bangladesh.
The selected Park Developer will be responsible for the following:
- Design, Build, Finance, Own, Operate the entire Hi-Tech Park
- Block of the park and Transfer at the end of the predetermined period to Bangladesh Hi-Tech Park Authority
- Operate, Manage and maintain the facility for a predetermined concession Period
- Collection of revenue such as rentals from commercial lease etc. for a predetermined concession period.
Physical Location and existing facilities at Kaliakoir Hi-Tech Park (KHTP)
KHTP is situated at Kaliakoir, Gazipur District besides Dhaka-Tangail expressway and total area of land at present 232 acres. This area is well demarcated by a boundary-wall, with easy transportation links and only 25 km north from Hazrat Shahjalal International Airport, Dhaka. The Park also connected with the other parts of the country through rail, road and Air. KHTP has the following supportive infrastructure available:-
- USD 28.15 million earnings for Digital Centre Entrepreneurs
- A 3 storied administrative building having 30,000sft floor spaces
- Utility connections including Power grid, Solar panel, gas and water supply
- Security of the Area
- Telecommunication facilities and Data center with fiber optic cable laid to the site
- Internal access road.
Minimum Eligibility Criteria:
Selected Developers either independently or developer with joint ventures/consortium must meet the minimum eligibility criteria.
Technical:
- Experience in development of Hi-Tech Park/Software Technology Park/IT Parks/Special Economic Zone commensurate with the size and nature of proposed Hi-Tech Park
- Should have designed, build, financed, own and/or operating at least one HTP/ITP/STP/SIZ in the last three years
- Should have experience of 5 years or more in HTP/ITP/STP/SIZ operations
- In case of Joint Ventures (JV) / Consortium: the maximum number of partners/members will be limited within three.
Financial:
- USD 28.15 million earnings for Digital Centre Entrepreneurs
- The financial solvency of the Developer should adequately be supported by documents. Three years audited financial statements (in case of JV/Consortium for each partner will be provided
- Should have gross revenues $1 (USD) million per annum from HTP/IT Park/STP/SIZ operations (excluding sale of assets) in the last three years evidenced in the financial statements should be incorporated
- Should have net worth of at least $15 (USD) million.
Independent study done by (a) Bangladesh University of Engineering & Technology and (b) Price Water House Coopers (PWC) on the feasibility of the Hi-Tech Park and their proposed design are available here. These documents are for reference only. Selected developer/entrepreneurs have the liberty to fully design and build the park with their innovative design, experience, knowledge and plan.
Additionally, selected developer/entrepreneurs will have the liberty to set their own eligibility criteria, contracts and payment methods for Sub-contractors.**
**Joint Ventures (JV) / Consortium partners does not qualify as Sub-contractors.
