Bangladesh Set to Fully Digitize Public Procurement by 2026

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Dhaka: The government of Bangladesh is poised to revolutionize its public procurement system by fully transitioning to electronic Government Procurement (e-GP) starting from the next fiscal year. From July 01, 2026, all public procurement activities will exclusively utilize e-GP, marking a significant step in the nation's procurement reform journey.

According to Bangladesh Sangbad Sangstha, S. M. Moin Uddin Ahmed, Chief Executive Officer of the Bangladesh Public Procurement Authority (BPPA), emphasized that if any tender process is initiated manually before the stated date, it may continue manually, but no new offline tendering processes will be allowed thereafter. Applications requesting exemptions from using e-GP will no longer be approved after June 30, 2026. This move underscores the government's commitment to transparency, efficiency, accountability, and competition in public procurement through full digitization.

Public procurement is a critical sector, accounting for nearly 45% of the national budget and around 85% of the Annual Development Programme (ADP) expenditure. Ensuring transparency and efficiency in this sector is crucial for optimizing public expenditure and enhancing service delivery. The introduction of the Public Procurement (Amendment) Ordinance, 2025, followed by its ratification in 2026, alongside the implementation of the Public Procurement Rules (PPR), 2025, marks a comprehensive reform aligned with international best practices.

The mandatory implementation of e-GP is a transformative reform under the Public Procurement Act. Introduced in 2011, the e-GP system has revolutionized procurement management by digitizing the entire cycle from tender invitation to contract management. It is expected to eliminate issues associated with manual tendering such as delays, lack of transparency, and opportunities for irregularities. BPPA data indicates that the reforms have already had a considerable impact.

The average number of bidders per tender increased significantly from 2.2 to 8.4 post-implementation of PPR, 2025. Moreover, the daily applications for e-GP registration surged from 60-70 to nearly 200-300. Women entrepreneurs have shown increased participation, with 7,408 women bidders now registered in the e-GP system, including 1,047 new registrations post-PPR, 2025.

The Public Procurement Rules, 2025, comprising 154 Rules and 21 Schedules, introduced several key reforms such as the removal of the ±10 percent price cap in national works procurement, mandatory e-GP usage, and the disclosure of beneficial ownership of contract awardees. Other reforms include introducing Sustainable Public Procurement (SPP), expanding framework agreements, and allocating 25% of the operational procurement budget for women, small, and new entrepreneurs.

Since e-GP's introduction, procurement efficiency has improved remarkably, with the average procurement lead time reduced to 54 days, and 99% of contracts signed within the original tender validity period. Despite these advancements, challenges such as capacity gaps, weak contract management, and resistance to change remain.

BPPA officials are focused on strengthening procurement governance through enhanced training, monitoring, policy support, and institutional reforms. The proposed Institute of Public Procurement (IPP) aims to become a national center of excellence for procurement training and professional development.

Bangladesh's transition to a fully electronic procurement system represents not only a technological shift but also a broader governance reform aimed at ensuring transparency and better public service delivery. S. M. Moin Uddin Ahmed expressed confidence in Bangladesh becoming a leading example of digital public procurement transformation in the region, emphasizing the need for continuous monitoring, effective implementation, and comprehensive training for stakeholders.