TIB study reveals top 5% of contractors awarded 61.31% of e-procurement contract value

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 Dhanmondi on Tuesday (25 February).

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.

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.