Published: 25 February 2025
Bangladesh introduced e-Procurement through the e-GP portal twelve years ago with support from the World Bank. The initiative aimed to reduce corruption risks, promote fair competition, and ensure transparency in public procurement. Despite several positive outcomes, the e-GP system has not made a significant impact in reducing corruption, political influence, and collusive bidding through syndication. A 2023 study by TIB also highlights some inherent weaknesses in the system. Around 46% of contracts receive fewer than four bids overall, with 65% of OTM (Open Tendering Method) contracts attracting less than four bidders. Alarmingly, one in five contracts is awarded through a single bid, reflecting a lack of competition. Moreover, the top 5% of contractors control nearly 30% of e-contracts, and their market dominance continues to grow. Over the past decade, the market share of the top 5% of contractors increased by almost 12%, indicating that a few firms wield significant control over public procurement. This clearly points to a serious market concentration problem in Bangladesh’s e-Procurement system.
In public procurement, understanding the market structure is essential for analyzing how participants — both bidders and contracting entities — operate and interact.
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