Staff Correspondent:

A study by Transparency International Bangladesh (TIB) has found that the top 5% of contractors working under the top 10 ministries secured 61.31% of the total contract value awarded through Bangladesh’s e-Government Procurement (e-GP) system over the past 12 years.

The findings were revealed at a press conference held at the TIB head office in Dhaka’s Dhanmandi on Tuesday (February 25).

The study, titled “E-Procurement in Bangladesh: Market Concentration, Collusion, and Political Influence”, examined procurement data from 2012 to 2025.

Since the introduction of e-GP in 2011, Bangladesh has spent Tk596,921 crore through the platform.

The highest recorded contract value awarded via this system stands at Tk881 crore, while contracts exceeding this amount remain outside the e-GP platform.

Of the total e-GP contract value, the top 10 ministries account for 91.72% (Tk540,950 crore).

Within these ministries, the top 5% of contractors secured 61.31% of the contract value, while the bottom 10% held less than 1% across all ministries.

MARKET CONCENTRATION ACROSS MINISTRIES

The study identified significant market concentration in key ministries. The Ministry of Housing and Public Works had the highest concentration, with its top 5% of contractors securing 74.96% of total contract value.

Over the past decade, the market share of the top 5% of bidders has increased across most ministries, with the Ministry of Housing and Public Works experiencing a 15% rise.

The Road Transport and Highways Division and the Ministry of Education both saw increases of 10%.

In the Road Transport and Highways Division (RTHD), 11% of contractors control 93.55% of the total contract value, with just 35 contractors (1%) holding a 72.9% market share.

The study identified nine major contractor networks operating within the division.

Similarly, in the Ministry of Water Resources, 9% of contractors control 91.5% of the total contract value, while 38 contractors account for 30.9%. The ministry has nine active contractor clusters.

In the Ministry of Housing and Public Works, 7.45% of contractors hold 71% of the market share, while 81 contractors control 32.32%.

Eleven contractor communities operate within the ministry’s procurement system.

The Local Government Division also exhibits high market concentration, with 9.74% of contractors controlling 62.88% of procurement contracts.

Within this division, 294 contractors (1%) hold 27.7% of the market. The study detected 12 major contractor communities in both the Local Government Division and the Ministry of Education.

USE OF JOINT VENTURES AND POLITICAL INFLUENCE

The study highlighted that leading contractors consistently secure contracts by forming joint ventures, amplifying their market influence beyond what is publicly recorded.

“Leading contractors capture bigger market shares through joint ventures. In some cases, their actual influence is five times larger than it appears,” said Touhidul Islam, director of TIB’s Outreach and Communication Division, who led the study.

He added that changes in political leadership impact contractor dominance in government projects.

“In Chattogram City Corporation, the top 10 contractors completely changed when the mayor changed. A similar shift occurred in the Ministry of Industries when a new minister took office.”

TIB has called for stronger regulations and transparency measures to prevent market monopolisation and ensure fair competition in government procurement.