The World Bank is set to reduce its funding for Bangladesh’s Private Investment and Digital Entrepreneurship (PRIDE) Project by $70.54 million, citing prolonged delays and underperformance in implementation.

The decision comes after nearly four and a half years of sluggish progress, during which the Bangladesh Economic Zones Authority (BEZA) and the Bangladesh Hi-Tech Park Authority (BHTPA) managed to utilise only 6.46 per cent of the original $500 million loan, approved in June 2020.

At a recent meeting of the PRIDE Project Advisory Committee, organised by the Economic Relations Division (ERD), officials reviewed the project’s progress and confirmed the loan restructuring proposal, which also includes a two-year extension.

The project was initially designed to support infrastructure development in the Mirsarai Economic Zone, renovate the Janata Software Technology Park (STP) in Karwan Bazar, and establish a new STP nearby. It also aimed to attract $2 billion in private investment and generate up to 150,000 jobs.

To date, the World Bank has disbursed $68.72 million, but implementing agencies have spent only $32.31 million. The cumulative financial progress of the two linked subprojects under BEZA and BHTPA remains under 10 per cent.

ERD Secretary Shahriar Kader Siddiky expressed concern over the project’s slow pace, questioning the feasibility of completing 90 per cent of the remaining work, even with an extended timeline. Officials have now been instructed to prepare a detailed catch-up plan with clear implementation targets.

Meanwhile, contract awards and construction works are progressing slowly. While the basement levels of a new STP have been built, renovation contracts for the existing park were only signed in April 2025. Delays in vacating old premises and tender backlogs continue to hinder implementation.