Planning Adviser Wahiduddin Mahmud on Wednesday hailed the recently approved amendment to the Public Procurement Act (PPA) as a “silent milestone” in the interim government’s reform agenda, saying it will modernise evaluation standards, curb irregularities and bring all tenders under a fully digital system.
Briefing reporters after an ECNEC meeting at the NEC conference room, the adviser said the Public Procurement (Amendment) Act, 2025—which revises the original 2006 law—was passed earlier this year by the Advisory Council, with rules now finalised and awaiting Law Ministry vetting.
The amended rules are expected to be gazetted next week, making them effective immediately, he added.
Under the new provisions, the planning advisr said, all tenders, from the lowest upazila-level projects to mega national projects, must be processed online through the e-GP (electronic government procurement) system. The earlier provision allowing a ±10 percent variation in estimated cost has been removed to ensure fairer competition.
“The evaluation criteria will now follow international standards. For too long, the tendering process was captured by a handful of vested groups or even what I would call ‘mafia circles,’ who controlled contracts in railways, roads, and water resources projects. This reform will end that monopoly,” the adviser said.
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There will be performance-based evaluation where Contractors will be judged not only on previous work with a specific ministry but across all sectors, with emphasis on quality and track record.
It will ensure transparency in ownership like Bidding firms must disclose all affiliated businesses and interests, allowing authorities to flag cases of corruption, loan defaults, or malpractice in other sectors.
It will prevent shadow bidding where Politically influential individuals will no longer be able to front bids under other names to corner projects.
This new rules and regulations will create space for new entrants While experienced contractors will continue to qualify, a portion of contracts will be open to firms without prior government contracting history, as long as they have a credible business record, creating room for competition.
“This amendment will make it impossible for the same few companies to keep winning contracts year after year. It opens the door for new players while raising standards for everyone,” the adviser added.
He stressed that the reform is unique because it was shaped entirely through consultations with government officials, experts, and stakeholders, rather than through any external commission. Draft rules were repeatedly posted online for public comment, and feedback was incorporated.
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Calling it a “quiet but transformative reform,” the adviser said the measure passed smoothly because those who stood to lose from the changes “dared not oppose it openly, given their own record of irregularities.”
“Every taka the government spends now falls under this law. For the first time, we will have a procurement framework that is not only transparent but also resistant to manipulation,” he noted.
During the ECNEC meeting, the chief adviser expressed concern that many ongoing projects are still plagued by weaknesses and frequent revisions.
“Almost all projects we reviewed today were inherited ones, patched up with conditions and extensions. This is why reforms in procurement and project preparation are so crucial,” the adviser said.