5pc contractors grab 61pc of e-GP projects: TIB

A decade of data on electronic Government Procurement, or e-GP, shows that 5 per cent of contractors dominate 61 percent of the projects in the 10 ministries with the highest spending, according to Transparency International Bangladesh (TIB).

Meanwhile, the bottom 10 per cent of contractors hold less than 1 per cent of the market share across all ministries, reports bdnews24.com.

The anti-corruption watchdog highlighted that tripartite collusion between the bureaucracy, contractors, and political forces has institutionalised “market dominance” in government procurement.

The TIB conducted a study titled "Bangladesh’s e-Procurement: Monopolistic Markets, Collusion, and Political Influence (2012-2014)" and presented its findings at a press conference at its office in Dhaka’s Dhanmondi on Tuesday.

TIB Executive Director Iftekharuzzaman shared the research data.

He said since the launch of e-GP in 2011, projects worth nearly Tk 5.97 trillion have been awarded through this system.

The highest approved contract value under the system was Tk 8.81 billion.

Projects with contract values higher than this have not yet been brought under this platform.

"The top 5 percent of contractors in the 10 highest-spending ministries secured 61.31 per cent of the total contract value, whereas the bottom 10 per cent of contractors collectively hold less than 1 per cent of the market share across all ministries," Iftekharuzzaman said.

At the briefing, it was pointed out that despite the goal of creating a competitive market in government procurement, it has not materialised.

Instead, an uneven competition among contractors across ministries has been observed.

Presenting market share data, Iftekharuzzaman said: "In most ministries, the top 5 per cent of contractors have increased their market share over the past decade. In the housing and public works ministry, these contractors secured 74.96 per cent of the total contract value.

“In the ministry, the share of the top contractors increased by 15 per cent, marking one of the highest growths.”

“In addition, a 10 per cent increase has been observed in the Roads and Highways Departement and the education ministry.”