| Project Detail |
Project Development Objective (PDO)
PDO Statement
19. The PDO is to promote private investment, job creation, and environmental sustainability in participating economic
zones and software technology parks in Bangladesh.
PDO Level Indicators
20. The PDO will be measured by four outcome indicators: (i) Direct private investment in economic zones (of which by
BSMSN unit investors, of which in PEZs outside the BSMSN, of which from PPPs); (ii) Number of direct (full-time
equivalent) new jobs facilitated by the Project (of which in the BSMSN, of which in PEZs outside the BSMSN, of which in
STPs, of which women); (iii) Number of companies using green and resilient services and facilities (of which in the BSMSN,
of which in PEZs outside the BSMSN, of which in STPs); and (iv) Greenhouse gas emissions avoided.
B. Project Components
21. The Project has four components. The BEZA will implement components 1-3 and the BHTPA component 4. The
lessons from the PSDSP reflect that the implementing agencies should have separate components and clearly
individualized activities and results targets to facilitate implementation. This holds even though they broadly seek to
achieve similar outcome indicators. The GoB’s spatial development agenda, divided between the BEZA and the BHTPA,
has strong complementarities without overlap under this Project: the BEZA focuses on enabling conditions for industry
and manufacturing whereas the BHTPA focuses on enabling conditions for the digital services sector. The following
section presents the main activities that the Project will finance by component. The following section presents the
activities. Annex 2 in this project appraisal document (PAD) complements with a more detailed project description.
22. The Project will finance both direct expenditures procured under specific activities and expenditure programs
associated with DLIs aimed at achieving results crucial to the achievement of the PDO. The Project will introduce
international standards in governance and innovative practices to private participation. The Project will also mainstream
resilience and sustainability in infrastructure development. The total project cost is estimated at US$555 million, of which
IDA financing is US$500 million and the GoB contribution is US$55 million. The results-based financing is 30 percent of
the total IDA financing. A brief summary of the broad objectives and aggregate budgets for the DLIs are presented in
Table 1. Section VII presents the full DLI matrix with sub-DLIs, timeframe and budget.
Table 1: Summary of DLIs with objectives and amounts
DLI Objectives Amount
1 Strengthen the institutional capabilities of BEZA and make it an effective and financially sustainable
institution under Part 1.1
US$30m
2 Level the playing field for developer-operators of economic zones under Part 1.1, 2.1 and Part 3.1 US$25m
3 Mainstream sustainable & climate resilient practices in economic zones under Part 1.1 of the Project US$15m
4 Establish a PPP SOU and structure three transactions under Part 1.2 and Part 2.2 of the Project US$70m
5 Establish a privately-operated flagship STP under Part 4.1 of the Project US$10m
Total DLI funds US$150m |
