Govt to establish AI hub with Tk192.66cr project backed by Koica

The government is planning a Tk192.66 crore project to establish a national artificial intelligence (AI) hub and train a new generation of AI professionals, with most of the funding expected to come from a grant by the Korea International Cooperation Agency (Koica).

The project, titled "Fostering Innovative Technology Experts with a Focus on Artificial Intelligence (AI) in Bangladesh", will be implemented by the Bangladesh Hi-Tech Park Authority (BHTPA) under the ICT Division between July 2026 and December 2029.

Of the total cost, Tk159 crore will come from Koica and Tk33.66 crore from the government.

According to project documents, the initiative aims to establish a state-of-the-art AI Hub Center, develop AI curricula, strengthen industry-academia collaboration, support startups and create international employment opportunities.

The project targets training 865 AI and digital technology specialists, establishing 30 AI-based startups, publishing 10 international AI research papers and achieving an 80% employment rate for trainees. It also includes Korean language training for 230 participants and infrastructure development for the AI hub.

The ICT Division recently urged the Planning Commission to quickly approve the project's Technical Assistance Project Proposal (TAPP), warning that delays could jeopardise Koica's proposed $13 million grant.

According to an official letter, the project proposal was sent to the Planning Commission and the Economic Relations Division (ERD) on 1 December 2025, but approval is still pending. As a result, the ERD and Koica have been unable to sign the required Record of Discussion (RoD) and Terms of Reference (ToR).

The ICT Division said Koica is reviewing its project portfolio and considers signed RoDs and ToRs essential for funding decisions. The ERD has also cautioned that delays could put the grant at risk.

Project documents describe Bangladesh as being at a critical stage of digital transformation, with demand for advanced ICT and AI skills far exceeding current capacity. While AI has been identified as a strategic priority under the National AI Policy 2024, existing institutions lack the infrastructure and expertise needed for advanced training and research.

Officials said the proposed AI hub would help bridge the skills gap, support innovation and entrepreneurship, and strengthen Bangladesh's position as a destination for technology investment.

The initiative builds on the government's wider high-tech park strategy. Bangladesh has already established software technology parks in Agrabad, Chattogram and Jashore, alongside IT training and incubation centres in Natore, Rajshahi, Kuet and Cuet, while major projects such as Kaliakoir, Sylhet and Rajshahi Hi-Tech Parks are also operational or under development.