EPC Contracts in Bangladesh (2026): FIDIC, O&M, G2G Projects and Contractor Debarment

EPC contracts Bangladesh: the 2026 legal framework

EPC contracts Bangladesh employers sign now sit inside three legal systems at once: the contract itself, usually built on a FIDIC form; the procurement or financing route that produced it, whether an open tender under the Public Procurement Act 2006, a lender's documents or a government-to-government (G2G) arrangement; and the integrity regime that can remove a contractor from public work altogether. The Public Procurement Rules 2025, in force since 28 September 2025, and the Public Procurement (Amendment) Act 2026 changed the second and third of those systems materially.[1]

This guide is written for contractors, sponsors, lenders and procuring entities. It covers how engineering, procurement and construction (EPC) and operation and maintenance (O&M) contracts are structured, which FIDIC book fits which project, how turnkey risk should be allocated on Bangladeshi sites, how G2G projects are financed and why the elected government is scrutinising G2G deals in 2026, how framework agreements now work, and how contractor blacklisting and debarment operate and can be challenged. The procurement process itself and the wider infrastructure map are covered in companion TRW guides, which are linked rather than repeated.

Summary: An EPC contract gives one contractor responsibility for design, supply and construction, usually for a fixed price and completion date. In Bangladesh the form is typically FIDIC-based, the procurement route is a public tender, a development-partner process, a G2G arrangement under section 68 of the Public Procurement Act 2006, or a private negotiation, and each route changes what the contract can say. A contractor found to have engaged in fraudulent or corrupt practice, or whose contract is terminated for fundamental breach, can be debarred across the public sector, and the decision can be appealed to the Debarment Review Board or challenged by writ.

Key point: Debarment is now public-sector-wide. Under the Public Procurement Rules 2025, a person debarred by any public agency is ineligible for procurement across the entire public sector, a temporary suspension lapses if the debarment is not decided within 42 days, and appeals go to a three-member Debarment Review Board under Schedule 21.[1] One debarment on one tender can now end a contractor's public pipeline nationwide.

At a glance

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Table of Contents

How EPC contracts Bangladesh projects use are structured

An EPC contract makes one contractor responsible for the engineering design, the procurement of plant and materials and the construction and commissioning of the works, usually for a lump-sum price and a fixed completion date. "Turnkey" describes the same idea from the employer's side: the employer turns a key and receives a working facility. The value of the structure is single-point responsibility. Its cost is a higher price, because the contractor charges for the risks it takes on.

On Bangladeshi power plants, LNG and fuel terminals, water treatment plants, bridges and rail packages, the EPC contract rarely stands alone. It is usually paired with an O&M contract, a lender's direct agreement and, on public projects, a financing or framework instrument between governments. Our overview of infrastructure projects in Bangladesh maps the delivery routes; this guide works at contract level, where most money is won or lost.

Where the contract comes from

The source of the contract decides how much of it can be negotiated. Four routes dominate. A national public tender uses the Bangladesh Public Procurement Authority (BPPA) standard documents and the Public Procurement Rules 2025, and the general conditions cannot be changed. A development-partner package uses the lender's procurement rules and standard bidding documents, which are built on FIDIC conditions. A G2G project is negotiated between the state counterparty and a contractor nominated or accepted under the bilateral arrangement. A private project, such as an independent power plant, is negotiated between sponsor and contractor, subject to lender requirements.

Identify the route before drafting a single clause: terms routine in a private EPC contract may be impossible in a public tender, and a G2G contract that ignores the loan's procurement conditions can leave the loan undrawable.

EPC, EPC plus finance and design-build

Three variants recur. A pure EPC contract leaves financing to the employer. An "EPC plus finance" proposal, common in G2G and unsolicited offers, bundles the contractor's works with export credit or state lending arranged by the contractor's home government. A design-build contract allocates design to the contractor but leaves more risk with the employer than a full turnkey form. EPC contracts Bangladesh agencies receive as "EPC plus finance" proposals deserve particular care, because the finance terms often drive the price and the contractor selection, not the other way round.

FIDIC-based engineering contracts: choosing the right book

FIDIC, the International Federation of Consulting Engineers, publishes the standard forms most engineering contracts in Bangladesh start from. The choice of book allocates design responsibility, ground risk and the role of the contract administrator. The table below summarises how the main forms fit Bangladeshi projects. On a phone, scroll it sideways.

Red and Yellow Books

The Red Book suits civil works designed by the employer and administered by an Engineer who certifies payment. The Yellow Book suits plant and works designed by the contractor. Under both, a contractor that meets physical conditions which were unforeseeable can claim time and cost.[12] That makes them the natural forms for roads, embankments and river works, where ground conditions are uncertain and the employer is better placed to carry that risk.

The Silver Book

The Silver Book is the EPC/turnkey form, developed for projects where certainty of final price and completion date is paramount, which is why lenders favour it.[12] Under it, the employer takes no responsibility for the accuracy of site information it provides, the contract price is not adjusted for unforeseen difficulties, the contractor is responsible for the design including errors in the employer's requirements, and there is no extension of time for exceptionally adverse climatic conditions.[12] The same analysis concludes that where an employer is not willing to pay for that certainty, another form should be used.[12]

In Bangladesh that warning matters. A Silver Book on a project where the employer controls land handover, utility diversion, river access and statutory permits asks the contractor to price risks it cannot manage. EPC contracts Bangladesh employers draft from the Silver Book should therefore carve the employer-controlled risks back out in the particular conditions.

The Gold Book for whole-life delivery

The Gold Book, first published in 2008, combines design, construction and long-term operation in a single contract. Its operation service period is intended to be at least 20 years, starting from the date in the commissioning certificate; the alternative is the more familiar pairing of an EPC contract with a separate O&M contract.[13] The design-build period works broadly on Yellow Book principles.[13] It suits water and waste plants procured on a design-build-operate basis, less so power plants financed on a project-finance model, where lenders usually prefer separate contracts.

The 2017 claims machinery

The 2017 suites tightened claims procedure. A party must give notice of a claim as soon as practicable and no later than 28 days after it became aware of the event, and the notice is a condition precedent to entitlement.[11] A fully detailed claim must follow within 84 days.[11] The Engineer then has 42 days for agreement and a further 42 days for a determination, failing which the claim is deemed rejected.[11] Bangladeshi contractors used to informal negotiation with project directors lose valid claims to these time bars every year. A claims register kept from the first site meeting is the cheapest protection.

Turnkey risk allocation in EPC contracts Bangladesh employers sign

A turnkey price is only as good as the risk allocation behind it. Whichever FIDIC book is used, the same handful of issues generate most disputes on Bangladeshi projects, and each needs an express answer in the contract.

Ground, site and land

Soft alluvial soils, high water tables and river morphology make ground conditions the largest single technical risk. The employer usually holds the best data, often from feasibility studies financed years earlier. If the employer wants the contractor to carry ground risk, it should disclose all data and allow time for investigation before the price is fixed. If it does not, the contract should use a geotechnical baseline and allocate conditions outside the baseline to the employer.

Land is a separate problem. On public projects the employer delivers acquired land, resettlement and utility relocation. A contract that gives the contractor possession "as required" without a schedule of access dates, and without time and cost relief for late handover, invites a dispute in the first year.

Change in law, tax and price adjustment

The Public Procurement Rules 2025 now settle two points for public contracts. Where a change in any law, rule or order alters direct or indirect taxes, including income tax, VAT and customs duty, the contract price is revised up or down with the approval of the head of the procuring entity so that the net amount the contractor receives is unaffected.[1] And a price adjustment clause, using the formula in the tender document, is mandatory for works or physical services contracts lasting more than 18 months.[1] Private and G2G EPC contracts should match or improve on that baseline, because a contractor will compare them with it.

Tax structure: onshore and offshore scopes

Foreign EPC contractors commonly split the contract into offshore supply and onshore construction and services. The split affects withholding tax, VAT, customs and payment currency, and must reflect where work is really performed; a paper split is vulnerable on audit. The contract should state who bears each tax and how withholding is grossed up.

Currency, payment and security

Imported plant is priced in foreign currency, local works in taka. The payment currency should match the contractor's cost base, and the contract should deal with delayed foreign exchange availability and letter of credit opening, which have delayed projects in recent years. Interest on late payment, a right to suspend and a right to terminate after prolonged non-payment are the contractor's main protections. Our analysis of unpaid Bangladesh infrastructure project claims sets out how those rights are enforced once payment stops.

Delay damages, performance guarantees and liability caps

The employer's protection against late completion is a delay damages rate; against underperformance, performance tests with performance damages or a right to reject. Both should be set at levels that reflect genuine loss, capped, and stated to be the exclusive remedy for the relevant failure. An overall liability cap, commonly tied to the contract price, and an exclusion of indirect loss complete the package. Performance and advance payment guarantees back these obligations; our guide on whether a performance guarantee can be stopped explains when a call can be restrained.

O&M contracts: operating what the EPC contractor built

An O&M contract governs the operation and maintenance of a completed facility for a fixed term, often matching the tenor of the power purchase agreement or the project loan. Where the EPC contractor or its affiliate also operates the plant, the two contracts must be read together; where a different operator takes over, the interface is the main source of risk.

The interface problems

Three interfaces recur. Defects: during the EPC defects period, the operator needs a clear route to make the EPC contractor fix faults, and operating failures must be distinguishable from design failures. Performance: the O&M contract's availability and heat-rate guarantees must match the EPC performance tests, or the operator is penalised for the builder's shortfall. Spares and warranties: these must be transferred to, and enforceable by, the operator.

Payment and performance regimes

O&M fees are usually a fixed fee for routine operation, with pass-through costs and a bonus and penalty regime linked to availability. FIDIC's Gold Book shows the logic of a whole-life contract: the contractor carries fitness-for-purpose obligations for the plant and output guarantees, and if a contractor-caused output failure lasts more than 84 days the employer may reduce payment, or terminate if output falls below agreed minimums.[13] The employer, in turn, supplies fuel and consumables and carries responsibility for them.[13] A stand-alone O&M contract should state the same division expressly.

Long-term risk

Twenty-year risk allocations rest on assumptions about inflation, law and markets that may prove wrong.[13] An O&M contract needs indexation, a change-in-law clause, periodic review and a handback regime fixing the condition of the facility at expiry.

EPC contracts Bangladesh public bodies award under the PPA 2006 and PPR 2025

Publicly funded EPC contracts are procured under the Public Procurement Act 2006 and the Public Procurement Rules 2025. Our guide to the 2025–26 public procurement amendments explains the tender process; four changes matter most to EPC bidders.

First, every procurement eligible for the e-GP portal must be conducted electronically, and an exception requires the BPPA's prior approval.[1] Contract administration has moved online too: the e-CMS module must be used for the execution, administration and management of contracts, and payments are made through the government's iBAS++ system.[1] Second, the rules introduce a formula to identify significantly low-priced tenders, and tenders below the resulting threshold are deemed rejected.[1] Third, a notice issued after contract signing must disclose contract details and the beneficial ownership of the contractor.[1] Fourth, procuring entities must prepare a procurement strategy and may run early market engagement, including pre-procurement conferences, before tendering.[1]

Early market engagement is the contractor's chance to argue for a sensible risk allocation; once the tender is out, the general conditions in BPPA standard documents cannot be altered.[2]

Framework agreements after the 2026 amendments

Framework agreements were a narrow tool under the original rules. The 2025 reforms, carried into the Public Procurement (Amendment) Act 2026, widened them. A framework agreement may now be executed under section 36 of the Act for goods, general works, recurring physical services of the same nature, or repetitive consultancies that are frequently required for a specific period, to avoid repeated tendering and obtain better value.[1] Procurement then takes place through call-off orders issued at intervals or as the procuring entity requires.[1]

The BPPA's December 2025 standard tender document for goods under a framework agreement (e-PG3A), issued as a preliminary working draft, shows how the arrangement works in practice.[2] It contemplates an agreement with a single supplier for a definite period, normally 12 months, for fixed or estimated quantities delivered through several call-off contracts, with payment against each call-off.[2]

Three terms of the framework agreement deserve attention before signing. The estimated quantities are not purchased by the agreement, and a shortfall in call-offs does not entitle the supplier to an adjustment; the supplier's protection is the minimum value the procuring entity guarantees to order.[2] Call-offs may be issued for one year from the date of the agreement.[2]

The supplier may decline a call-off worth less than 2.5 per cent of the agreement price, or escape the response times where call-offs in a month exceed 25 per cent of the agreement price, in each case by notice within three working days.[2] A supplier that misses those notices is bound by the framework agreement.

G2G projects Bangladesh: legal basis and financing routes

G2G projects Bangladesh has delivered include some of its largest assets, from power and nuclear generation to tunnels, bridges and fuel supply. A G2G arrangement starts with an agreement or memorandum between Bangladesh and another government, which then nominates or supports a contractor or supplier and, usually, arranges finance. The PPP variant, under the G2G Partnership Policy 2017 and now the Invest Bangladesh Act 2026, is covered in our guide to PPP projects in Bangladesh; this section deals with G2G supply and EPC contracts outside PPP.

The procurement hook: section 68

For non-PPP G2G contracts, the government relies on the exception in section 68 of the Public Procurement Act 2006. When the Cabinet Committee on Economic Affairs gave in-principle approval in July 2026 to process a Chinese state contractor's proposal for a floating LNG terminal at Moheshkhali through a G2G arrangement, the Finance Ministry identified section 68 of the Act and rules 99(2) and 107(2) of the Public Procurement Rules 2025 as the basis.[6] The approvals run through the Cabinet Committee on Economic Affairs and the Cabinet Committee on Government Purchase, not an open tender; neither cabinet committee is bound by an earlier in-principle approval.

The consequence for a foreign contractor is that the G2G route replaces competition with approval. The contractor's position depends on each approval being properly obtained, on the contract staying within what was approved, and on the price being defensible to a committee that can, and does, send proposals back.

How each lender shapes the contract

The financing government shapes the EPC contract. The interim government's task force on re-strategising the economy reported in early 2025 that Indian lines of credit require 75 per cent of project materials and services to be sourced from India, and that only 19 per cent of India's line-of-credit commitments had been used.[8] It found that Chinese firms typically handle feasibility studies, design and construction on Chinese-funded projects, that the Karnaphuli Tunnel was managed entirely by Chinese entities, and that all major contracts on certain Japanese-funded projects went to Japanese firms.[8]

Russia's financing of the Rooppur nuclear power plant shows the state-credit model at scale. The loan, under an intergovernmental credit agreement, is about $11.38 billion, 90 per cent of a $12.65 billion project cost, and in February 2025 Russia agreed to extend the disbursement period to the end of 2026 through a protocol to that agreement.[10] Deadlines of that kind sit in the loan, not the EPC contract, yet decide whether the employer can pay.

The three-document chain

Every G2G project Bangladesh signs rests on at least three instruments: the framework agreement or memorandum between governments, the commercial EPC or supply contract, and the loan or credit agreement. The intergovernmental instrument rarely gives the contractor enforceable rights by itself. The commercial contract does. The loan determines when and how the contractor is paid.

The three must be consistent on scope, price, currency, the conditions for disbursement, the procurement conditions on sourcing, and dispute resolution. A loan that permits disbursement only against certified invoices in a particular form, while the EPC contract provides for milestone payments certified differently, will leave the contractor unpaid for months. Lawyers for each party should read all three documents together before any is signed.

The 2026 review of G2G deals

G2G deals face closer scrutiny in 2026. There is no single statute behind it; it comes from a policy critique inherited from the interim government, cabinet committees testing individual proposals, and a shift in the elected government's financing policy.

From the 2025 task force to cabinet committee scrutiny

The 2025 task force recommended revising existing G2G framework agreements to reduce resource leakage and improve governance, and removing restrictive conditions such as the mandatory use of donor-country materials and labour.[8] It also warned that limited open bidding and heavy foreign control had pushed many projects over their original cost estimates.[8]

The elected government has applied that critique case by case. The clearest example is the Moheshkhali floating storage and regasification unit. After the July 2026 in-principle approval, the Cabinet Committee on Government Purchase, chaired by Finance Minister Amir Khosru Mahmud Chowdhury, returned the proposal in mid-October 2026.[7] The Finance Ministry described it as withdrawn; a power ministry official said the committee wanted its observations addressed first.[7]

The figures explain the caution. The proposal was costed at Tk 12,324 crore over 15 years or Tk 13,161 crore over 20 years, and the proposed daily fee of $342,000 was reported to be about 35 to 37 per cent above existing terminals.[7] Petrobangla had also asked for the contractor's response to comments from the Legislative and Parliamentary Affairs Division before the implementation and terminal use agreements were finalised.[7]

From loans to investment

Financing policy is moving in the same direction. On 14 October 2026 the Finance Minister said Bangladesh is gradually moving away from the state-to-state model towards investment and partnership, and that future Chinese financing should shift from loans to investment.[9] For contractors that have relied on "EPC plus finance" offers, that signals a preference for equity-backed and PPP structures over contractor-arranged state lending.

What the review means for live and proposed deals

For proposals in the pipeline, price must be benchmarked against comparable contracts, because committees are comparing. Legislative Division comments on the draft agreements must be resolved before approval is sought. The approval record must match the contract finally signed. For live contracts, the cabinet review power is not a right to rewrite signed terms, but a contract signed on an incomplete approval or outside the approved scope is exposed. A legal audit of the approval chain is the first defence.

Contractor blacklisting and debarment under the PPA 2006 and PPR 2025

Contractor blacklisting Bangladesh procuring entities impose is formally called debarment: a declaration that a person is ineligible to participate in public procurement for a period. It is the most serious commercial sanction a contractor faces short of prosecution, because it closes the e-GP portal to the firm and, now, to its participation anywhere in the public sector.

Grounds for debarment

Debarment for corrupt and fraudulent practice rests on section 64 of the Public Procurement Act 2006. Show cause notices and debarment decisions in recent cases were issued under that section and the corresponding rule of the 2008 Rules, typically for submitting false documents with a tender.[4] [5] The 2025 Rules add a second track: a procuring entity may debar an individual or entity for up to two years for observed professional misconduct or where a contract has been terminated for breach of its fundamental conditions.[1]

The second ground is new and significant for EPC contractors. A termination for default on one contract, previously a matter for the contract's dispute clause, can now found a debarment from all public work. A contractor facing termination should treat the termination notice as a debarment risk from the day it arrives.

Public-sector-wide effect and cross-debarment

Under the 2025 Rules, a person debarred by any agency in the public sector is ineligible to participate in procurement across the entire public sector.[1] Tenderers must also give an assurance that they are not currently debarred, for procurement-related reasons, by any development partner operating in Bangladesh.[1] A World Bank or ADB sanction therefore becomes a disclosure issue in national tenders, and a false assurance is itself a ground for action.

Temporary suspension and the 42-day limit

While debarment proceedings are underway, the procuring entity may impose a temporary suspension on the person's participation in its procurement immediately on starting the proceedings.[1] The debarment must be finalised within 42 days of the suspension; otherwise the suspension becomes ineffective on expiry of that period.[1] A contractor that is suspended should diarise the 42nd day and, if no decision has issued, require the procuring entity to lift the suspension.

What the debarment list shows

The BPPA publishes a debarment list showing the firm, district, period, the debarring authority and the reason.[3] Entries made under the 2008 Rules show periods of three, five, ten and twenty years, and some entries run to 2124, effectively permanently.[3] Reasons include fake tender securities, collusive and fraudulent practice, and non-compliance with contract work; one shipping-sector debarment was expressed to extend to other government and World Bank-financed projects.[3] Any due diligence on an EPC contractor, joint venture partner or subcontractor should include a search of the list.

Joint venture partners

Debarment follows the joint venture. In Bhawal Engineers & Construction Ltd v Bangladesh, a contractor holding a 2 per cent share in a joint venture was debarred from the e-GP portal for one year, the same penalty as its 98 per cent lead partner, after the lead partner allegedly submitted a false payment certificate.[4] The contractor's reply to the show cause notice went unanswered.[4] A minority partner should therefore control what its lead partner submits on its behalf, take indemnities, and insist on seeing every document filed in the joint venture's name.

How to challenge a contractor debarment

A debarment decision can be challenged, and courts have repeatedly reduced penalties found to be disproportionate. The route has three stages, and each must be used properly for the next to work.

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Answer the show cause notice as if it were the hearing

The reply to the show cause notice is often the only opportunity to put facts before the decision-maker. It should address each allegation, attach documents, explain any discrepancy, and propose proportionate alternatives the procuring entity can accept. In Abaid Monsur v Bangladesh the contractor said that discrepancies in completion dates came from errors in the government's own databases rather than from his conduct; the High Court Division noted that the respondents had not considered that plea.[5] An explanation not made at this stage is hard to introduce later.

Appeal to the Debarment Review Board

Under the 2025 Rules, an individual, contractor, supplier, service provider or consultant aggrieved by a debarment decision of a procuring entity may appeal to a Debarment Review Board of three experts constituted under Schedule 21.[1] This is a separate body from the Review Panel that hears tender complaints. Our guide to procurement complaints and Review Panel appeals covers that other track, which deals with evaluation and award, not eligibility sanctions.

File promptly with the full show cause record, press legality and proportionality, and, where the debarment rests on a partner's document, separate the appellant's conduct from the partner's.

Writ petition in the High Court Division

Where the statutory route fails or is unavailable, the High Court Division's writ jurisdiction is the final domestic remedy. Its recent decisions show a consistent concern with proportionality. In Bhawal Engineers, decided on 8 December 2024, the Attorney General accepted that a 2 per cent partner should not bear the same penalty as the lead partner, and the court reduced the one-year debarment to five months; it had earlier allowed the contractor e-GP access for its pending works.[4]

In Abaid Monsur, decided on 25 August 2025, the Roads and Highways Department's chief engineer had uploaded 28 debarment decisions to the e-GP portal, running from February 2024 to January 2027, without communicating a written office order.[5] Relying on earlier Division Bench decisions and an Appellate Division direction in Civil Petition for Leave to Appeal No 162 of 2025, the court held the decisions disproportionate in aggregate and limited the debarment to the period already served.[5] The respondents had argued that the contractor should first have approached the BPPA; the court heard the writ regardless.[5]

Both cases arose under the 2008 Rules. Now that a Debarment Review Board exists, a petitioner that skips it should expect to be asked why. The safer course is to appeal to the Board and seek interim protection from the court only if the Board cannot act in time. Our constitutional and writ litigation practice handles these petitions.

Who decides what

Disputes under EPC contracts Bangladesh parties sign

Most EPC disputes in Bangladesh pass through a dispute board or Engineer's determination before arbitration. The FIDIC dispute board mechanism, and why a standing board is usually worth its cost, are explained in our infrastructure projects guide. Where the arbitration is seated in Bangladesh, the Arbitration Act 2001 applies. An arbitration counts as an international commercial arbitration where at least one party is a national of, or habitually resident in, a country other than Bangladesh, which is the usual position on foreign EPC and G2G contracts.[14]

Interim protection matters most when guarantees are at risk. Section 7A of the Act allows the High Court Division, for an international commercial arbitration, and the District Judge's court for others, to grant interim injunctions, restrain the transfer of property, appoint a receiver and take other protective measures before or during the arbitration or until enforcement.[14] For the substantive arbitration, see our guides to arbitration law in Bangladesh and to setting aside arbitral awards.

A G2G contract should not leave disputes to the intergovernmental agreement, which usually provides only for diplomatic consultation. The commercial contract needs its own arbitration clause, with a named seat and institution, consistent with the loan agreement.

Critical mistakes on EPC contracts Bangladesh contractors and employers make

Using the Silver Book where the employer controls the site

Turnkey risk transfer works only where the contractor can manage the risk it takes. On a site where land, utilities and permits sit with the employer, carve those risks out or use the Yellow Book.

Treating the G2G memorandum as the contract

An intergovernmental memorandum does not give a contractor payment rights. The commercial contract and loan agreement do, and both need their own approvals.

Ignoring a termination notice's debarment risk

Termination for breach of fundamental conditions is now a ground for debarment of up to two years across the public sector.[1] Respond to termination notices with the debarment consequence in mind.

Assuming the cabinet approval covers later changes

In 2026 cabinet committees are reading G2G proposals line by line.[7] A material change after approval needs fresh approval, or the contract is exposed.

Frequently asked questions

What is an EPC contract in Bangladesh?

It is a contract under which one contractor designs, procures and constructs a facility, usually for a fixed price and completion date. Bangladeshi EPC contracts are commonly based on FIDIC forms and procured through public tender, development-partner rules, a G2G arrangement or private negotiation.

Which FIDIC book should a Bangladeshi project use?

The Red Book for employer-designed civil works, the Yellow Book for contractor-designed plant, the Silver Book for genuine turnkey projects where the employer pays for price certainty, and the Gold Book for design-build-operate contracts with an operation period of at least 20 years.[12] [13]

What are the claim deadlines under the 2017 FIDIC forms?

Notice no later than 28 days after the party became aware of the event, and a fully detailed claim within 84 days. The notice is a condition precedent to entitlement.[11]

Does a change in tax law change the price of a public contract?

Yes. Under the Public Procurement Rules 2025, where a change in law alters direct or indirect taxes, the contract price is revised with the approval of the head of the procuring entity so the contractor's net receipt is unaffected.[1]

What legal basis does a non-PPP G2G contract use?

The government relies on section 68 of the Public Procurement Act 2006 and, for the July 2026 Moheshkhali LNG terminal proposal, the Finance Ministry also cited rules 99(2) and 107(2) of the Public Procurement Rules 2025.[6] Approvals come from the Cabinet Committee on Economic Affairs and the Cabinet Committee on Government Purchase; G2G PPP projects follow the separate PPP framework.

Is the government reviewing G2G deals in 2026?

Cabinet committees are scrutinising individual G2G proposals on price and terms, and returned the Moheshkhali floating LNG terminal proposal in October 2026.[7] The Finance Minister has also said Bangladesh is moving from state-to-state lending towards investment and partnership.[9]

How long can a contractor be debarred?

A procuring entity may debar for up to two years under the 2025 Rules for professional misconduct or termination for breach of fundamental conditions.[1] Older entries on the BPPA list, made under the 2008 Rules, show periods of up to twenty years.[3]

Does a debarment by one agency apply to all government tenders?

Yes. A person debarred by any public-sector agency is ineligible to participate in procurement across the whole public sector.[1]

How do I appeal a debarment decision?

Appeal to the three-member Debarment Review Board constituted under Schedule 21 of the Public Procurement Rules 2025.[1] If that route fails, a writ petition may be brought in the High Court Division, which has reduced disproportionate debarments.[4] [5]

What is a framework agreement under the amended PPA?

A framework agreement is an agreement under section 36 of the Act for repeated goods, general works, recurring physical services or consultancies over a period, with purchases made by call-off orders.[1] The BPPA's goods template uses a single supplier, a period normally of 12 months and a guaranteed minimum order value.[2]