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Feasibility Study for the Development of ICT Village at Jessore

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Feasibility Study for the Development of ICT Village at Jessore Revised Final Report Bangladesh Hi-Tech Park Authority Information & Communication Technology Division Ministry of Posts, Telecommunications & Information Technology Feasibility Study for Development of Sylhet Electronics City Volume 1 of 2 MAIN REPORT Sylhet Electronics City Prepared by Infrastructure Investment Facilitation Company Dhaka, Bangladesh August 2014 Feasibility Study for Sylhet Electronics City Bangladesh Hi-Tech Park Authority Volume 1 of 2 Main Report Feasibility Study for Sylhet Electronics City Client: Bangladesh Hi-Tech Park Authority Contact Persons: For the Client: Mr. Kamal Uddin Ahmed Additional Secretary Address: Information & Communication Technology Division, Ministry of Posts, Telecommunications and Information Technology BCC Bhaban, Agargaon Dhaka-1207 For the Consultant: Mr. Nazrul Islam Managing Director Address: Infrastructure Investment Facilitation Company IDB Bhaban (6th Floor) Agargaon, Sher-e-Bangla Nagar Dhaka - 1207 Quality Information Authors: Muhammad Shamsur Rahman SASM Taifur AKM Rabiul Islam Amzad Hossain Raffat Charlene Imran Ehsan Mahbub Alam Shariful Islam Maitrayee Roy Subrata Sikder Quazi Fahima Naz Checked by: Raffat Charlene Compiled by: Rehana Parvin Quality Verified by: Nazrul Islam Approved by: Nazrul Islam Distribution List 1. Mr. Md. Nazrul Islam Khan, Secretary, Information & Communication Technology Division, Ministry of Posts, Telecommunications and Information Technology 2. Mr. Kamal Uddin Ahmed, Additional Secretary, Information & Communication Technology Division, Ministry of Posts, Telecommunications and Information Technology and Programme Director of Feasibility Study for Development of ICT Villages at Divisional Levels 3. Ms. Hosne Ara Begum (N.D.C.), Managing Director, Bangladesh Hi- Tech Park Authority 4. Ms. Kamrun Nahar, Deputy Chief, Planning and Development Wing, Information & Communication Technology Division, Ministry of Posts, Telecommunications and Information Technology Feasibility Study for Sylhet Electronics City Volume 1 of 2: Main Report Table of Content EXECUTIVE SUMMARY ..................................................................... 1 1 BACKGROUND ........................................................................ 18 1.1 Digital Bangladesh and Government Initiatives In ICT Sector .................. 18 1.2 Broad Goal/ Vision of ICT Villages ............................................................. 37 1.3 Assignment Background ........................................................................... 39 1.4 Brief Scope of Work and Approach........................................................... 39 2 ICT INDUSTRY ANALYSIS IN BANGLADESH ................................ 42 2.1 Economic Climate –Global and Local IT/ITeS Situation ............................ 46 2.1.1 Global IT/ITeS Situation ................................................................................ 46 2.1.2 Local IT/ITeS Situation .................................................................................. 47 2.2 Bangladesh ICT Industry............................................................................ 48 2.3 Industry Strengths and Needs .................................................................. 49 2.4 Business Trend .......................................................................................... 51 2.5 Growth Trend ............................................................................................ 52 2.6 Investment Trend ...................................................................................... 53 2.6.1 Investment Trend in ICT Sector ..................................................................... 53 3 INSTITUTIONAL ARRANGEMENT .............................................. 56 3.1 Role of Government In the ICT Sector ...................................................... 56 3.2 Ministries /Agencies Involved With ICT Sector ......................................... 57 3.3 Regulatory Authority and Functions ......................................................... 59 3.3.1 Ministry of Posts, Telecommunications and Information Technology .......... 59 3.3.2 Bangladesh Computer Council (BCC) ............................................................ 60 3.3.3 Bangladesh Hi-Tech Park Authority (BHTPA) ................................................ 61 3.3.4 Bangladesh Telecommunication Regulation Commission ............................ 62 3.3.5 Ministry of Information ................................................................................ 62 3.3.6 Ministry of Commerce .................................................................................. 63 3.3.7 Bangladesh Bank .......................................................................................... 63 Contents 3.4 Relevant Laws and Regulations ................................................................ 64 3.4.1 Proposed Regulatory Framework ................................................................. 64 4 LOCATION OF PROJECT – SYLHET ............................................. 70 VI Table of 4.1 Sylhet Background .................................................................................... 70 VI Feasibility Study for Sylhet Electronics City Volume 1 of 2: Main Report 4.2 District Demographics With Respect to ICT Sector................................... 70 4.2.1 Population Structure .................................................................................... 70 4.2.2 Literacy Rates and Education ....................................................................... 71 4.2.3 Electricity and Internet ................................................................................. 72 4.2.4 ICT Courses in Educational Institutions ......................................................... 72 4.2.5 Challenges of skilled manpower and ways to overcome .............................. 74 4.3 ICT Sector Growth and Investment Trend In Sylhet ................................. 75 4.4 Site Location and Description ................................................................... 76 4.5 Ownership ................................................................................................. 78 4.6 Offsite Infrastructure to the Site .............................................................. 78 4.6.1 Access Road .................................................................................................. 78 4.6.2 Power Supply ................................................................................................ 79 4.6.3 Broadband Network Connectivity ................................................................. 80 4.6.4 Gas Supply .................................................................................................... 81 5 MARKET SURVEY..................................................................... 83 5.1 Market Survey Methodology .................................................................... 83 5.1.1 Sample Size................................................................................................... 83 5.1.2 Choice of Companies .................................................................................... 83 5.2 Survey Questionnaire................................................................................ 84 5.3 Survey Findings ......................................................................................... 84 5.3.1 Findings from ICT Companies Surveyed ........................................................ 84 5.3.2 Findings from Freelances Surveyed .............................................................. 91 5.4 Profile of Industrial Enterprises ................................................................ 94 5.4.1 Type of Services ............................................................................................ 94 5.4.2 Number of Employees .................................................................................. 95 5.4.3 Average Salary of Professional ..................................................................... 95 5.5 Measures for Enhancing Competitiveness of the Park ............................. 96 5.5.1 Reliable Power Supply .................................................................................. 96 5.5.2 Cheap Rent ................................................................................................... 96 5.5.3 Reliable Internet Connectivity....................................................................... 96 5.5.4 Fiscal Incentives ............................................................................................ 96 5.5.5 Measures for Improving Quality, R&D, Training and information ................ 97 6 DEMAND FORECAST ................................................................ 99 Contents 6.1 Purpose of Demand Forecast.................................................................... 99 6.2 Standardisation of Industry Sub-categories ............................................. 99 6.2.1 Multi Tenant Building (MTB) ........................................................................ 99 VII 6.2.2 Vacant Industrial Plots ............................................................................... 100 Table of 6.3 Demand Forecast Methodology ............................................................. 101 VII Feasibility Study for Sylhet Electronics City Volume 1 of 2: Main Report 6.4 Sample Industry Volume ......................................................................... 103 6.5 Space Requirement of Bangladesh ICT Industry ....................................
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