How to win government contracts and tenders in Bangladesh

Navigating Government Contract Acquisition in Bangladesh: A Strategic Guide

Bangladesh’s public procurement landscape offers substantial business opportunities amid its robust growth trajectory[1][6]. Exports are projected to hit $110 billion by FY2026–27 per the newly ratified Export Policy 2024–27[14]. Coupled with transparency-enhancing reforms leveraging digital platforms like the e-Government Procurement (e-GP) system[7][12], companies seeking government contracts must align strategies with evolving regulatory requirements. This guide outlines key considerations based on government and international bodies, offering clear and actionable pathways for success.

Trade Policies Shaping Public Procurement

Addressing Anti-Export Bias

Historically, Bangladesh maintained high import tariffs, generating an anti-export bias averaging 47% nominal protection rates as of FY2021[1]. Recent policy shifts, however, emphasize export diversification beyond ready-made garments (RMG)[6][14]. Under the Export Policy 2024–27, sectors such as pharmaceuticals, ICT services, agro-processing, and medical equipment are designated thrust sectors, enjoying government incentives under WTO-compliant schemes as the country graduates from Least Developed Country (LDC) status in 2026[14]. Companies active within these sectors can therefore benefit from streamlined approvals, minimized bureaucratic barriers, and attractive financing programs in line with national priorities.

Preparations for Free Trade Agreements (FTAs)

To mitigate impacts from LDC graduation, Bangladesh is pursuing preferential trade agreements (PTAs) and free-trade agreements (FTAs) with partners like Bhutan and India. Comprehensive Economic Partnership Agreements (CEPAs) are also under consideration[4][16]. These agreements align with GATT1994 Article XXIV guidelines, potentially nudging Bangladesh closer to international procurement standards consistent with WTO's Government Procurement Agreement (GPA), although Bangladesh has not fully joined GPA yet[16]. Businesses should proactively monitor these developments and prepare for new compliance demands associated with international standards.

Mandatory Registrations and Documentation Requirements

Company Registration with RJSC

All foreign and local companies aiming for government contracts must register as Joint Stock Companies (JSCs) or Limited Liability Partnerships (LLPs) through Bangladesh's Registrar of Joint Stock Companies & Firms (RJSC). Mandatory registration procedures include:

• Name Clearance: Proposed company names submitted on e-GP portal (Form PG3-2) complying with RJSC naming conventions[2].
• Draft Memorandum & Articles of Association (MoA/AoA): Documents defining company objectives, capital structure, and shareholder rights, notarised as per the Companies Act 1994[2].
• Opening Bank Account: Initial minimum deposit of BDT 500,000 (~USD 4,500), with inward remittance certificates required for foreign entities[2].

Post-registration, further requisites like Tax Identification Number (TIN), VAT registration, and Environmental Clearances are essential[2].

Enrollment on the e-GP Portal

The Bangladesh Public Procurement Authority (BPPA) manages the e-Government Procurement (e-GP) platform (eprocure.gov.bd). All contracts exceeding BDT 200,000 (~USD 1,800) require mandatory vendor registration, submitting the following scanned documents:

• RJSC-issued incorporation certificate
• Entity Tax Identification Number (TIN)
• Latest audited financial statements and bank solvency certificates confirming at least 30% of the estimated contract value
• Relevant industry-specific credentials (ISO certifications, past project completion certificates)[7]

Failure to provide complete, accurate documentation could result in bid disqualification. Processing typically completes within approximately 45 days.

Technical and Financial Bid Documentation

Standard Tender Documents (STDs)

Government procuring entities, such as LGED and BWDB, provide STDs detailing mandatory bid document contents, including:

• Invitation to Tender (ITT): Criteria for eligibility, evaluation processes, dispute resolution guidelines, and bid timelines.
• General/Particular Conditions of Contract (GCC/PCC): Terms covering deliverables, performance penalties, and force majeure circumstances.
• Bill of Quantities (BoQ): Detailed item specifications and performance benchmarks.
• Required Forms (PG3-Series declarations): Affidavits, bid security formats, and standard declarations[9][12].

For example, LGED infrastructure tenders typically demand adherence to international technical standards like ASTM/CEN, along with itemised financial breakdowns supported by chartered accountant-certified costing sheets[9][12].

Compliance Audits Upon Award

Post-award, contractors undergo rigorous compliance checks assessing:

• Project Execution: Adherence to milestones and timely execution, with identified delays subject to penalty[5].
• Quality Assurance: Third-party material and workmanship inspections, rectifications, and liability procedures per Public Procurement Rules 2008 (Clause 48)[5].
• Integrity and Ethical Conduct: Integrity pacts preventing fraud and corrupt practices, punishable by debarment and legal action[13].

Contractors must therefore meticulously manage their contractual obligations to avoid severe consequences, including forfeiture of performance securities.

Strategic Recommendations for Businesses

Utilise Digital Platforms Effectively

The BPPA's digital Contract Management System (e-CMS), integrated with government payment management (iBAS++), facilitates swift transaction settlements and reduces payment delays by approximately 30%. Businesses should adopt internal ERP systems compatible with e-GP platforms, enabling seamless invoice management and reducing administrative overheads, as demonstrated in recent LGED and BWDB pilot projects[15].

Embrace Capacity-Building Opportunities

Businesses are encouraged to participate in workshops organised by international bodies such as WTO's Enhanced Integrated Framework (EIF), which offers training on sustainable procurement, SME inclusivity, and effective dispute resolution strategies. These skills are critical as Bangladesh prepares for intensified international procurement alignment potentially leading towards the GPA post-LDC graduation in accordance with the Ministry of Commerce's roadmap[16].

This strategic guide underscores the importance of aligning business strategies with evolving procurement norms, leveraging digital innovations, and developing capacities through international collaboration. Companies prepared to meet these guidelines will find themselves well-positioned for sustained success in Bangladesh's dynamic public procurement arena.

[1] https://www.tbsnews.net/analysis/anti-export-bias-trade-policy-811174
[2] https://tahmidurrahman.com/company-registration-process-in-bangladesh/
[3] https://www.biddetail.com/bangladesh-tenders
[4] https://thefinancialexpress.com.bd/views/pursuit-of-ftas-by-bangladesh-and-challenges-ahead-1625925470
[5] https://thefinancialexpress.com.bd/views/a-suggested-public-procurement-framework
[6] https://trade4devnews.enhancedif.org/en/impact-story/strategic-priority-setting-key-bangladeshs-inclusive-trade-future
[7] https://cptu.gov.bd/e-gp.html
[8] https://cptu.gov.bd/advertisement-notices/advertisement-goods.html
[9] https://btcl.portal.gov.bd/sites/default/files/files/btcl.portal.gov.bd/tenders/e510085f_a9e6_4d80_b398_d1721c74f104/2025-02-10-10-52-b4336158ced4b25ff143b9848d71af3c.pdf
[10] https://iisc.ac.in/wp-content/uploads/2025/02/TankCleaningTenderDoc.pdf
[11] https://thefinancialexpress.com.bd/trade/cross-border-digital-commerce-policy-awaits-final-approval
[12] https://lged.portal.gov.bd/sites/default/files/files/lged.portal.gov.bd/tenders/9976a1f0_b3e9_4ab2_b18c_05cc3897053e/2025-02-11-10-00-3eb6c1d63cd1e8a5cb597f0031175dbc.pdf
[13] https://en.wikipedia.org/wiki/Government_procurement
[14] https://www.thedailystar.net/business/news/cabinet-approves-new-export-policy-3719036
[15] https://erd.gov.bd
[16] https://tams.wto.org/node/10466
[17] https://press.un.org/en/2025/db250227.doc.htm
[18] https://unstats.un.org/capacity-development/calendar/capacity-building-events/