Editorial

Ensure fair contest for government contracts

We must break monopolistic stranglehold on public procurement
VISUAL: STAR

The monopolistic control over government procurement is something that we often talk about. A study by Transparency International Bangladesh (TIB) now reveals that over the past 12 years, 17 percent of all government tenders had only one bidder. This means public contracts were awarded without competitive price bidding among multiple participants, violating the government's own policies. While public procurement is among the most corruption-prone sectors globally, in Bangladesh, according to TIB, corruption in this sector has spiralled out of control.

For example, between 2012 and 2025, 27 percent of all bids had only two or three bidders. Additionally, more than 44 percent of tenders were issued under the "limited tendering method," which is intended for cases where goods, services, or works are available from only a small number of suppliers. Since the launch of the e-GP system in 2011, the top 10 contracting ministries have accounted for about 92 percent of the total expenditure of Tk 596,921 crore. However, larger contracts have remained outside the e-GP framework, making them even more susceptible to corruption.

A similar pattern is seen across other ministries, highlighting the extent of monopolisation that has taken root under past regimes. This, in turn, has fuelled inequality, as a select group of favoured companies have repeatedly secured projects without competitive bidding or proper oversight. It is one of the reasons why government projects in Bangladesh tend to be so costly, despite often being of subpar quality.

At the Road Transport and Highways Division, just 11 percent of all contractors were awarded 93.55 percent of the Tk 82,506 crore spent by the department between 2015 and 2025. The concentration is even more extreme among the top 1 percent of contractors, who control 72.9 percent of the market. Similarly, at the Ministry of Water Resources, around 9 percent of contractors hold 91.5 percent of the total project value, with 38 contractors controlling a 30.9 percent market share. At the Ministry of Housing and Public Works, only 7.45 percent of contractors dominate 71 percent of the market.

A similar pattern is seen across other ministries, highlighting the extent of monopolisation that has taken root under past regimes. This, in turn, has fuelled inequality, as a select group of favoured companies have repeatedly secured projects without competitive bidding or proper oversight. It is one of the reasons why government projects in Bangladesh tend to be so costly, despite often being of subpar quality.

TIB has found that the companies dominating government procurement often change with shifts in leadership at local governments or ministries. This suggests that the procurement system does not function based on the competitiveness of bids, the quality of a company's work, or its market reputation, but rather according to the whims of those in power. This raises serious concerns about conflicts of interest and corruption.

Given the circumstances, the interim government must undertake a comprehensive overhaul of the procurement system to ensure independent oversight, greater transparency, and mechanisms for external scrutiny. The government should also introduce market share caps for individual contractors and joint ventures. Breaking the monopolistic cycle will encourage not only the establishment of more firms but also greater competition, thereby improving the quality of public projects.

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Ensure fair contest for government contracts

We must break monopolistic stranglehold on public procurement
VISUAL: STAR

The monopolistic control over government procurement is something that we often talk about. A study by Transparency International Bangladesh (TIB) now reveals that over the past 12 years, 17 percent of all government tenders had only one bidder. This means public contracts were awarded without competitive price bidding among multiple participants, violating the government's own policies. While public procurement is among the most corruption-prone sectors globally, in Bangladesh, according to TIB, corruption in this sector has spiralled out of control.

For example, between 2012 and 2025, 27 percent of all bids had only two or three bidders. Additionally, more than 44 percent of tenders were issued under the "limited tendering method," which is intended for cases where goods, services, or works are available from only a small number of suppliers. Since the launch of the e-GP system in 2011, the top 10 contracting ministries have accounted for about 92 percent of the total expenditure of Tk 596,921 crore. However, larger contracts have remained outside the e-GP framework, making them even more susceptible to corruption.

A similar pattern is seen across other ministries, highlighting the extent of monopolisation that has taken root under past regimes. This, in turn, has fuelled inequality, as a select group of favoured companies have repeatedly secured projects without competitive bidding or proper oversight. It is one of the reasons why government projects in Bangladesh tend to be so costly, despite often being of subpar quality.

At the Road Transport and Highways Division, just 11 percent of all contractors were awarded 93.55 percent of the Tk 82,506 crore spent by the department between 2015 and 2025. The concentration is even more extreme among the top 1 percent of contractors, who control 72.9 percent of the market. Similarly, at the Ministry of Water Resources, around 9 percent of contractors hold 91.5 percent of the total project value, with 38 contractors controlling a 30.9 percent market share. At the Ministry of Housing and Public Works, only 7.45 percent of contractors dominate 71 percent of the market.

A similar pattern is seen across other ministries, highlighting the extent of monopolisation that has taken root under past regimes. This, in turn, has fuelled inequality, as a select group of favoured companies have repeatedly secured projects without competitive bidding or proper oversight. It is one of the reasons why government projects in Bangladesh tend to be so costly, despite often being of subpar quality.

TIB has found that the companies dominating government procurement often change with shifts in leadership at local governments or ministries. This suggests that the procurement system does not function based on the competitiveness of bids, the quality of a company's work, or its market reputation, but rather according to the whims of those in power. This raises serious concerns about conflicts of interest and corruption.

Given the circumstances, the interim government must undertake a comprehensive overhaul of the procurement system to ensure independent oversight, greater transparency, and mechanisms for external scrutiny. The government should also introduce market share caps for individual contractors and joint ventures. Breaking the monopolistic cycle will encourage not only the establishment of more firms but also greater competition, thereby improving the quality of public projects.

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‘এ দল যেন মানুষের কথা বলে, দেশ যেন নিরাপদ থাকে তাদের কাছে’

‘নতুন রাজনৈতিক বন্দোবস্তের’ প্রতিশ্রুতি নিয়ে জুলাই আন্দোলনের সংগঠকদের নেতৃত্বে আত্মপ্রকাশ করা নতুন রাজনৈতিক দল ‘জাতীয় নাগরিক পার্টি’র (এনসিপির) সমর্থকদের প্রত্যাশা, এ দল যেন দেশের মানুষের কথা বলে।...

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