Research

BSMSN New City Development EIPP Proposal: An Analysis of the Korean Cooperation Model

Overview of the BSMSN New City EIPP Proposal

BSMSN (Bangladesh Satellite and New City Development) is the public body responsible for overseeing new town and satellite city development in Bangladesh. To ease congestion in the Dhaka metropolitan area, the government is planning multiple new cities in surrounding districts. EIPP, the Environment and Industry Promotion Program, is a Korean cooperation framework led by the Ministry of Environment and the Korea Environment Corporation. It aims to integrate Korean environmental and industrial technologies into urban infrastructure projects in developing countries.

Applying EIPP to BSMSN new city development would package Korean environmental solutions into core urban infrastructure such as water, wastewater, waste management, and energy systems to build a sustainable green city. Three candidate sites are under discussion: Bangabandhu City, Phulbariahat, and Joydebpur. The overall program size is estimated at $1.5-2.0B. Korea's development experience in Sejong, Songdo, and Gimpo Hangang New Town offers a practical model for implementation.

New City Lead
BSMSN
Bangladesh government body
Environmental Industry Program
EIPP
Korean MOE-led
3
Candidate Sites
Bangabandhu, Phulbaria, Joydebpur
$1.5-2.0B
Program Size
10-year horizon
15,000 acres
Land Area
Combined total
1.5M
Planned Population
Phased occupancy
Applicable
K-City Model
Sejong and Songdo references
MP+EPC+O&M
Korean Role
Integrated package

EIPP Proposal Framework

The core of the proposal is an integrated design framework that aligns environmental infrastructure, energy systems, and ICT services from the master planning stage. The environmental pillar covers water supply, wastewater treatment, stormwater management, and waste resource circulation. The energy pillar focuses on distributed generation such as solar and biogas, alongside smart grids and storage systems. The ICT pillar covers smart transport, integrated control centers, and IoT-based facility management. Designing these three pillars together at the outset can reduce construction costs while improving operational efficiency.

Integrated Infrastructure Structure Across the Three EIPP Pillars
PillarInfrastructure ItemKorean TechnologyScale ($M)Note
EnvironmentWater Supply PlantMembrane filtration (MF/UF)200200,000 tons/day
EnvironmentSewage Treatment PlantMBR / A2O process300150,000 tons/day
EnvironmentWaste-to-EnergyIncineration power generation150500 tons/day
EnergySolar + ESSDistributed generation10050 MW
EnergySmart GridAMI and DR80K-Grid model
ICTIntegrated Control CenterK-City platform50IoT and AI operations
ICTSmart TransportITS and BRT12030 km corridor
Total--1,000Core EIPP package

Analysis of Candidate New Cities

Bangabandhu City
Location40 km northwest of Dhaka, Aricha area
Area6,150 acres, the largest site
Planned Population800,000 by 2035
PositioningIT and industrial hub linked to SEZs
Phulbariahat and Joydebpur
Phulbariahat30 km west of Dhaka, 4,500 acres
Planned Population400,000, mainly residential
Joydebpur35 km north of Dhaka, 4,350 acres
Planned Population300,000, administrative and education focus

Among the three candidates, Bangabandhu City is the largest and the strongest priority for an initial EIPP application. With 6,150 acres and a target population of 800,000, it is designed as an IT and industrial hub linked to special economic zones. Korea's Sejong administrative city and Pangyo tech cluster provide useful reference points. Phulbariahat is more comparable to a residential satellite city such as Gimpo Hangang, while Joydebpur fits better with an administrative and education-oriented model such as Naju Innovation City. A shared environmental infrastructure standard across the three sites would create economies of scale.

Implementation Strategy and Participation Model

01
Master Planning Consultancy (Phase 1)
The first step is a master planning consultancy package valued at roughly $10-15M. Korea Land and Housing Corporation (LH) and the Korea Environment Corporation could jointly prepare an integrated urban, environmental, energy, and ICT master plan. Financing could combine around $5M in KOICA ODA support with matching Korean government funds, over an expected implementation period of 12-18 months.
02
Pilot Project Execution (Phase 2)
Based on the Phase 1 master plan, a pilot project could be launched in Zone 1 of Bangabandhu City, covering about 1,000 acres with a project value of $200-300M. The package would include a 50,000 ton/day water treatment plant, a 30,000 ton/day sewage treatment plant, 10 MW of solar power, and a 5 km BRT section. Financing would likely combine ADB or World Bank resources with PPP structures, while a consortium of Korean construction, environmental, and ICT firms would deliver EPC work.
03
Scale-Up to Full Development (Phase 3)
If the pilot proves successful, the program could be expanded across all three new cities, reaching a total scale of $1.5-2.0B over a 10-year period from 2025 to 2035. Development would proceed in phases using BOT and BTO structures under broader PPP frameworks. Korean firms could secure not only EPC contracts but also long-term O&M agreements of 20-30 years, creating stable recurring revenue.
04
Expected Gains and Key Risks
The opportunity for Korean companies could include more than $500M in EPC contracts, over $50M in equipment exports, and more than $200M in long-term O&M income. The main risks are delays in land acquisition, changes in political decision-making, and uncertainty in project financing. The practical mitigation strategy is to use KOICA ODA as an entry point, then reduce payment risk by anchoring the larger phases in multilateral development bank financing.
BSMSN EIPP Execution Roadmap
Phase 1
Master plan consultancy, $15M
Phase 2
Pilot project, $300M
Phase 3
Full rollout, $1.5B+
O&M
20-30 years of operations
Expansion
Exportable K-City model
BSMSN New City Presentation MaterialsReview the official presentation content on the BSMSN new city plan
Promising Infrastructure Projects in BangladeshSee the broader infrastructure pipeline that includes the new city program

The proposal to apply EIPP to BSMSN new city development is a strategic model for packaging Korean urban development and environmental technology for export to Bangladesh. A phased path of master plan consultancy, pilot delivery, full-scale rollout, and long-term operations offers the most practical structure. KOICA ODA can serve as the initial entry point, while ADB, the World Bank, and PPP finance can support later stages. If executed successfully, the project could also become a platform for exporting the K-City model to other developing markets.

BSMSNnew cityEIPPurban developmentK-City
BSMSN New City Development EIPP Proposal: An Analysis of the Korean Cooperation Model | Dhaka Trade Portal