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

1. Infrastructure & Connectivity:Infrastructure & Connectivity:
Korean-Financed Pipeline AnalysisKorean-Financed Pipeline Analysis
Bangladesh-Korea Partnership: $18+ Billion in Infrastructure
Development
Rashedur Rahman & Ehsan Tanim
September 2025

BIG
www.bigbd.org

2. Strategic Partnership
Korea is 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
BIGwww.bigbd.org

3. Tier 1: Under Construction/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
BIGwww.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
KEPCOHanwha SolarOCI
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 InvestmentGeographic 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
BIGwww.bigbd.org
Critical Risk Areas8-9/10
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
BIGwww.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
BIGwww.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
BIGwww.bigbd.org
Strategic Partnership 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