Renewed investment optimism at Rajshahi Hi-Tech Park after 5 August pause

Infographics: TBS

Highlights

• Starlink leased a one-acre plot for 40 years
• Chaldal and PRAN-RFL Group to build call centers and IT hubs
• Bondstein plans to open a Robotics & IoT Research Center
• Agni Systems secured a one-acre plot; BRAC IT is negotiating for two
• Employers targeting Rajshahi youth for tech and IT outsourcing
• 16 companies occupy Silicon Tower, 11 remain operational
• 5 August looting caused Tk32 crore in damages

Since commencing operations last year, Rajshahi Hi-Tech Park has attracted growing interest from both domestic and foreign companies. This year, American company Starlink leased a one-acre plot for 40 years, agreeing to pay $2 per square meter annually plus service charges.

Alongside Starlink, local firm Agni Systems Limited secured a one-acre plot, while discussions are underway to allocate land to BRAC IT. BRAC CEO Asif Saleh recently visited the park, and the organisation has requested a two-acre plot to relocate its 650 IT developers.

Rajshahi Hi-Tech Park features a 12-story Silicon Tower with 84,661 square feet of leasable space. Recently, Chaldal and PRAN-RFL Group signed resolutions to lease 12,612 square feet each on the 10th and 9th floors, respectively. Both plan to establish IT and call centers there.

Bondstein Technologies, a local company associated with Starlink's infrastructure development and management in Bangladesh, plans to establish a Robotics and IoT Research Center in the park. 

The company's CEO, Mir Shahrukh Islam, told The Business Standard, "Starlink has yet to be fully operational; only about ten antennas are installed, with thirty more planned. We are excited to contribute to advanced tech research and development here."

After leasing the plot in April, Starlink completed construction of a ground station by July on its one-acre plot. The company has also built ground stations in Gazipur and Jessore Hi-Tech Parks, from where it plans to run operations across Bangladesh.

The park's Deputy Director Mahfuzul Kabir, highlighted that eight plots in front of Silicon Tower remain reserved for large companies, signaling ongoing expansion. He expressed confidence that by December, significant operational activity will be underway at the park.

The park spans 31 acres beside the Padma River near Rajshahi's court area and was developed with an investment of 343 crore taka. The project was officially handed over to the Bangladesh Hi-Tech Park Authority on June 30, 2024.

Despite a severe setback on August 5 last year, when looters caused extensive damage and theft worth crores of taka, many companies have resumed activities. Star Cineplex, one of the few companies present before the incident, remains closed due to losses estimated at Tk3 crore, but others like Netra Systems Limited and Business Automation Limited have restarted operations.

We have revived the park from near ruin. By December, we expect a surge in activity and employment at Rajshahi Hi-Tech Park. – Mahfuzul Kabir, Deputy Director, Rajshahi Hi-Tech Park

Netra Systems CEO Asik Mohammad reported losses of 25 lakh taka and three months of halted activities, temporarily shifting to home office work. He believes political stability will foster further growth and increase foreign investment, especially as software development expands beyond the current freelancing-focused operations.

Business Automation Ltd also suffered losses of approximately 30 lakh taka but has since redecorated and resumed work. 

However, ongoing infrastructure issues persist. HR Executive Rubaiat Zaman Abir noted that frequent electrical substation failures disrupt server operations, halting work. Security remains inadequate, with CCTV installation pending and reliance on local personnel for protection.

Despite challenges, the park is creating employment opportunities for Rajshahi's youth. Chaldal CEO Zia Ashraf expressed hope to employ skilled young professionals, particularly in graphic design, tech support, and hardware. Rajshahi's reputation as an education hub with a talented workforce eager to work locally supports this optimism.

PRAN-RFL's GM Tanvir Hossain also shared plans to start IT business process outsourcing, graphic design, and training centers upon finalising their floor allocation.

Currently, 16 companies occupy 18 blocks in Silicon Tower, with 11 operational and others preparing to launch. Additionally, seven software firms operate within the adjacent IT Training and Incubation Center.

A committee, including representatives from the Public Works Department, was formed to assess the damages from the August 5 looting, preliminarily estimating losses around 32 crore taka, particularly affecting Star Cineplex and related assets.

Looking ahead, Deputy Director Mahfuzul Kabir is optimistic, saying, "We have revived the park from near ruin. By December, we expect a surge in activity and employment at Rajshahi Hi-Tech Park."

Officials and investors remain confident as steady leasing and growing interest from both local giants and foreign firms signal Rajshahi's strong potential as a tech hub.

This renewed optimism at Rajshahi Hi-Tech Park reflects Bangladesh's broader ambition to develop regional technology centers, boost employment, and attract foreign direct investment, provided political stability and infrastructural support continue to improve.