Koica grants $96m to boost Bangladesh's future in advanced tech, AI, and sustainable development

The Korea International Cooperation Agency (Koica) is set to roll out a new wave of development initiatives in Bangladesh, committing a total of $96 million to five major projects spanning advanced technology, human resources, and sustainable rural development beginning in 2026. 

Koica President Chang Won-sam presented the proposal at a meeting today (2 December), hosted by the Economic Relations Division (ERD), attended by ERD Secretary Shahriar Kader Siddiky and Additional Secretary Mirana Mahrukh. The projects, scheduled from 2026 to 2028, emphasise creating a skilled workforce and enhancing national digital security.

Among the flagship initiatives, the "Fostering Smart & Eco-Friendly Ship Recycling Experts through Physical AI in Bangladesh" project stands out. Backed by a $30 million grant, this decade-long project (2027–2036) aims to cultivate highly skilled experts capable of implementing environmentally responsible and technologically advanced practices in the ship recycling industry. 

Another key initiative, the "Saemaul Plus End Poverty Program (SPEPP) in Bangladesh", will also receive $30 million starting in 2026 to enhance local government capacity and advance sustainable rural development through 2034.

Koica is further investing $26 million in Bangladesh's technology and digital security sectors through two parallel projects. The "Fostering Innovative Technology Experts with a Focus on AI in Bangladesh", a $13 million initiative running from 2026 to 2029, aims to develop a high-tech workforce by strengthening educational institutions and workforce training with a focus on Artificial Intelligence to support sustainable economic growth. 

In tandem, the Project for the "Establishment of Bangladesh National Intelligent Cybersecurity Center and AI-Integrated Security Capacity Building", also funded at $13 million, will run from 2028 to 2032 to establish a central intelligent cybersecurity hub and enhance institutional capacity, integrating AI technology to safeguard the nation's digital infrastructure. 

Addressing healthcare and social resilience, Koica has earmarked $10 million for a new initiative targeting adolescents and youth in Rohingya refugee camps and surrounding host communities. Implemented in partnership with the United Nations Population Fund, the project seeks to strengthen mid- to long-term healthcare and sanitation services for vulnerable populations.

These upcoming projects add to Koica's already substantial engagement in Bangladesh, which is expected to total $17.39 million in 2025 alone. Current programs include a $9.65 million project to develop a national statistics data warehouse and big data analysis platform, and a $5.9 million initiative to build the education and research capacity of the National Institute of Advanced Nursing Education and Research, aimed at enhancing mid- to long-term healthcare policy and services.

As of 2024, Korea's Official Development Assistance (ODA) ranks sixth in Bangladesh in terms of grants and concessional loans, with Koica's cumulative support reaching approximately $232.85 million. The commitment highlights the deepening strategic partnership between Bangladesh and Korea, with Koica's Country Plan now prioritising forward-looking sectors aligned with Bangladesh's national development goals.