Staff Reporter :
Transparency International Bangladesh (TIB) has stated that, over the past decade, the government procurement market has become institutionalised under the control of a tripartite nexus involving the bureaucracy, contractors, and political power.
Unveiling a research report titled “E-Procurement in Bangladesh: Monopoly, Collusion, and Political Influence” at its office in the capital on Tuesday, TIB highlighted how influential contractor syndicates exploit legal loopholes to engage in unethical practices, obstructing fair competition.
The findings revealed that 666,474
procurement transactions were conducted via the e-GP platform across 66 ministries and divisions from 2012 to 2024, showing that since its launch in 2011, Bangladesh has spent Tk5,96,921 crore through this system. The highest recorded contract value on the platform was Tk881 crore; all contracts exceeding this amount were conducted outside the platform, the report stated.
The top 5 per cent of contractors from the top 10 ministries secured 61.31 per cent of the total contract value, while the bottom 10 per cent of contractors collectively held less than one per cent of the market share across all ministries. Over the past decade, the top 5 per cent of contractors have steadily increased their market share in most ministries.
In the Road Transport and Highways Division, only 11 per cent (384 contractors) secured 93.55 per cent of the total contract value, with just 35 contractors dominating 72.9 per cent of the market.
A similar pattern was observed in the Ministry of Water Resources, where 9 per cent (336 contractors) controlled 91.5 per cent of the total contract value, with only 38 contractors holding 30.9 per cent of the market. In the Ministry of Housing and Public Works, 7.45 per cent (607 contractors) secured 71 per cent of the total contract value, with 81 contractors dominating 32.32 per cent of the market. In the Local Government Division, 9.74 per cent (2,865 contractors) controlled 62.88 per cent of the total contract value, while 294 contractors held 27.7 per cent of the market.
TIB attributed this market dominance to the formation of joint ventures by top contractors to control large projects. In the Roads and Highways Division, nine major contractor networks are actively controlling the sector. The Local Government Division and the Ministry of Education have 12 major contractor groups exerting influence, while the Ministry of Housing and Public Works is dominated by 11 contractor groups. Notably, top contractors secure five times more contracts through joint ventures than through individual contracts, further consolidating their market power.
The report suggests that political shifts play a significant role in determining which contractors gain dominance, further undermining fair competition in government procurement. For instance, during a mayoral transition in Chattogram City Corporation, the entire list of the top 10 contractors was replaced. A similar pattern was observed in Cumilla City Corporation, where a mayoral change led to a complete turnover of top contractors, with only two contractors securing projects under both mayors. The same situation was seen in the Ministry of Industries when its minister was replaced.
TIB’s Executive Director, Dr. Iftekharuzzaman, stated, “The public procurement sector is the most corruption-prone worldwide. However, in Bangladesh, it has fallen into a hostage situation under uncontrolled monopolisation.”
“Our 2018 study revealed that corruption and irregularities in institutional procurement result in up to 27 per cent wastage of the total procurement budget. Unfortunately, despite digitising the process through e-GP, corruption has not been controlled, nor has open competition been ensured,” he added.
“The electronic procurement system has been monopolised by a tripartite alliance of bureaucracy, contractors, and political forces, further institutionalising the capture of the public procurement market,” he emphasised.
Dr. Iftekharuzzaman continued, “From 2012 to 2024, the top 10 ministries have spent over Tk five lakh crore in public procurement. Of this, 61 per cent of the work orders were awarded to the top 5 per cent of contractors, with some ministries exceeding 74 per cent in order concentration. This indicates that a significant portion of the market is controlled by influential contractors.”
He further added, “Whether the same situation persists in a post-authoritarian political and bureaucratic context will depend on the timely reform of related laws, regulations, and the e-GP process. However, achieving real benefits in this area is impossible without positive changes in political and bureaucratic culture and practices.”
Based on the research findings, TIB has proposed recommendations to ensure good governance in government procurement. These include intensive monitoring of joint venture firms by the Bangladesh Public Procurement Authority (BPPA) to prevent collusive market capture, enacting competitive laws through BPPA to break syndicates, and setting a market share cap for both individual contractors and joint ventures to ensure equal opportunities for all.
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