A recent roundtable discussion on the public procurement process in Bangladesh has again brought to light issues that have long been raised but sadly remain unresolved. The event, attended by local industrialists, procurement experts, and government officials, highlighted how the existing procurement framework sidelines local manufacturers in favour of foreign experts and companies, limiting their ability to compete for government contracts. Some participants called the procurement rules “discriminatory,” as they allegedly lock out well-established local companies from a government spending pool worth $30 billion.

They also pointed out that the existing rules neither ensure full transparency nor guarantee fair competition. There were instances where domestic bidders were reportedly rejected for invalid reasons. This lack of competitiveness has been an issue for long, with a recent Transparency International Bangladesh (TIB) study revealing that over the last 12 years, more than 62 percent of tenders went to just five percent of contractors. The introduction of the electronic government procurement (e-GP) system—which was intended to address such irregularities and promote fair bidding—has failed to make a difference. In 2023, TIB found that public contracts worth Tk 60,069 crore were awarded based on single bids through the e-GP system. How is that possible if the system isn’t being manipulated? The role of Bangladesh Competition Commission in addressing such malpractice has been questionable, to say the least.

Over the years, Bangladesh’s manufacturing base has grown significantly in several sectors. We now have multibillion-dollar industries that have successfully expanded operations in multiple countries. This should give them ample expertise to participate in domestic projects—provided the process is transparent, competitive, and merit-based. The engagement of local companies also helps boost domestic expertise and revenue. In the process, local manufacturing can receive a strong push, creating jobs, saving valuable foreign currency currently spent on hiring foreign firms, and making meaningful contributions to the national economy.

Unfortunately, corruption in public projects remains a grave concern that needs urgent intervention. According to TIB, around 27 percent of government contracts involve corruption. Overinflated cost estimates regularly make headlines. For instance, in 2023, the state-run Power Grid Company of Bangladesh Ltd (PGCBL) reportedly imported 68 kg of tower bolts, nuts, and washers from India for $239,695, when the actual price should have been a mere $148! Examples like this are far too common.

Clearly, the public procurement system is in urgent need of an overhaul. We hope the interim government will take necessary steps to introduce long-overdue reforms to make public procurement fair, transparent, efficient, and corruption-free.