To improve governance and ensure transparency, efficiency, and competition in public procurement, the Public Procurement Rules (PPR), 2025 became effective from 28 September, after the enforcement of the Public Procurement (Amendment) Ordinance, 2025 on the same day.
The Ordinance introduced significant changes to the Public Procurement Act (PPA), 2006. In line with these amendments, the new PPR, 2025 was framed and enforced.
Now, both the amended PPA, 2006 and the newly formulated PPR, 2025 are in effect for conducting public procurement in the country. The PPR, 2025 consists of 154 sections and 21 schedules. Key changes include the removal of the 10% price cap in national works procurement, mandatory use of e-GP for all public procurement, mandatory disclosure of the actual beneficial owner of contract awards, the formal introduction of Sustainable Public Procurement (SPP), requirement for a procurement strategy, recognition of physical services as a distinct procurement category, expanded framework agreements and negotiations, the establishment of a Debarment Board, and clearer provisions on asset disposal.
The formulation of PPR, 2025 followed the gazetting of the Public Procurement (Amendment) Ordinance, 2025, on May 4, 2025. Shortly after, the Bangladesh Public Procurement Authority (BPPA) began drafting the new rules, replacing the PPR, 2008.
To ensure technical soundness, BPPA’s Governing Board formed a Technical Working Group (TWG) comprising representatives from ministries, major procuring agencies, BPPA officials, and national procurement trainers. The TWG held over nine meetings to deliberate on the revisions, while BPPA organized 12 consultations with stakeholders, including procuring agencies, tenderers, journalists, senior policy officials, women entrepreneurs, and development partners.
In these consultations, participants unanimously recommended drafting an entirely new set of rules instead of amending PPR, 2008, given the breadth and significance of the required changes. Following this advice, BPPA prepared the draft of PPR, 2025 and submitted it to the Finance Division and the Legislative and Parliamentary Affairs Division for vetting.
“This is a great step forward in ensuring competition and fairness in the public procurement process,” said Md Kamal Uddin, secretary of the Implementation Monitoring and Evaluation Division.
BPPA’s CEO and Secretary SM Moin Uddin said the new rules mark a significant milestone in public procurement reforms in the country.
