Fate of contractors deprived for 20 years set to change

The Cabinet has approved the draft of the Public Procurement (Amendment) Ordinance 2026 to allow old contractors from two decades ago to participate again without obstacles. There is also good news for new license holders. No condition can be imposed that limits their participation in government procurement. Government work experience also cannot be made mandatory in procurement contracts. The final approval was given at the 21st Cabinet meeting held at the Secretariat on Sunday with Prime Minister Tarique Rahman in the chair.

A notification from the Cabinet Division described the move as an initiative to protect domestic industries and increase competition. However, analysts view it differently. They said the amendment still carries the risk of giving unfair advantages to politically influential institutions. They also described the amendment of the law without any discussion with stakeholders as disappointing.

However, several government officials said on condition of anonymity that the law was amended mainly to give businesspeople who have been deprived for 20 years and new entrepreneurs an opportunity to participate in government procurement. They said businesspeople aligned with the BNP and Jamaat could not participate in government procurement after the One Eleven period due to political reasons. They faced the highest level of obstruction. Even incidents such as killings took place when opposition minded businesspeople participated in tenders. There were also incidents of enforced disappearance. During the Awami League government, leaders and activists of the party and its affiliated organizations exclusively controlled government procurement. This was an open secret. Although the Awami League government has fallen, BNP and Jamaat supported businesspeople still cannot participate in government procurement due to the restrictions left in the law. The amendment was made mainly after considering the overall situation.

A review of the draft amendment found that a new section has been added to allow contractors who have been in the field for 20 years to participate in tenders. The section states, “‘Opportunity deprived person’ means a person who had valid registration or a license within a period of not more than 20 years preceding the date on which this amendment law comes into force but could not or did not participate in any government procurement process due to a lack of necessary opportunity or a favorable environment to participate in government procurement activities.”

For new contractors, two new subsections have been proposed by restructuring Section 25 of the relevant law. One of them is Section 25(2), which states, “‘No condition may be imposed in determining qualifications that unnecessarily limits the participation of newly registered persons or new entrepreneurs.’”

The other is subsection 25(3). It states, “‘Long term experience, high annual turnover, experience in working with government institutions or experience in executing a single large contract cannot be set as mandatory qualifications. However, the procuring entity may impose special conditions in specific cases considering the nature, complexity and risks of the procurement.’”

The new draft also calls for priority in the procurement of domestic products. A new condition has been added to subsection 26(2), stating, “‘The government may relax qualification requirements to protect the interests of domestic industries and ensure the participation of new tenderers, micro and small tenderers, women tenderers or opportunity deprived persons in the procurement process.’”

Transparency International Bangladesh (TIB) Executive Director Dr. Iftekharuzzaman expressed disappointment over the amendment of the law without any discussion with stakeholders. He told Agamir Somoy on Sunday, “‘It is also disappointing that although relevant stakeholders have long been recommending amendments to the law, the government is moving ahead with it unilaterally and hastily without any discussion or engagement. This is also raising concerns about the purpose and transparency of the lawmaking process.’”

He further said, “It can be considered positive if it is seen that a tenderer, despite being new or opportunity deprived, has acquired the necessary skills and experience for the relevant work while fulfilling the prescribed technical and subject specific requirements. Otherwise, there remains a risk of giving unfair advantages to a politically influential institution without adequate skills and experience. The provision allowing ‘special conditions’ in special circumstances has also created an opportunity for such favoritism.”

As Parliament is not currently operational, the amendment is expected to be issued soon as an ordinance. It also keeps an alternative route open for procurement during national emergencies and special circumstances.

Government policymakers view the matter positively. When asked, Bangladesh Public Procurement Authority (BPPA) Chief Executive Officer (CEO) Abu Sayed Md. Kamruzzaman told Agamir Somoy, “‘The amendment has made it possible to prevent new participants from being held back by unnecessary conditions and to make it easier for those who have held licenses for 20 years to get work. I hope these provisions will not be misused. The rules will be formulated accordingly.’”

The summary sent to the Cabinet by the Ministry of Planning said the government enacted the Public Procurement Act 2006 as the main legal framework for public procurement to ensure transparency, accountability, equal treatment and free competition in public procurement management. The law came into effect on January 31, 2008. It has since been amended six times to make the public procurement process more up to date and easier. The latest amendment was finalized through the passage of a bill in Parliament and its publication in the gazette on April 10 this year.

The summary said that as the changes are now considered relevant and necessary, amendments to the Public Procurement Act have been proposed to protect the interests of domestic industries, increase competition in procurement, reserve special provisions for new, micro and small, women and opportunity deprived tenderers, and expand provisions related to the operation and management of procurement contracts.

Earlier, a demand had been raised in Parliament to simplify e tendering. On August 30, Bogura 4 lawmaker Md. Mosharraf Hossain demanded that the e tendering process be simplified to increase employment opportunities for educated unemployed youths. He said that while the interim government had been able to simplify the process within a short time, the current government had failed to do so even after six months. He asked how much more time would be needed for this. The issue was discussed in detail.

At one point in the discussion, Law Minister Md. Asaduzzaman said the government had taken an initiative to update the Public Procurement Act and Rules to remove alleged “syndicates” and obstacles to competition in government tenders. He said the government had identified allegations that a system had been created under the law and rules during the previous period that deprived people with opposing political views of business opportunities. However, instead of taking action overnight, the government had taken steps for reform by following the legal process.

A subcommittee of the Cabinet was formed to amend the Public Procurement Act and Rules. As chairman of the committee, he held several meetings with the relevant ministers and state ministers and a draft was prepared. He had also said that it would be brought before Parliament soon. Within three weeks of those remarks, the Cabinet gave policy and final approval to the draft of the Public Procurement (Amendment) Ordinance 2026.