Government to establish separate agency to aid public procurement

The Public Procurement Authority headquarters will initially be based in Dhaka and later be expanded outside the capital as needed, says cabinet secretary

The government is going to turn the Central Procurement Technical Unit, or CPTU, into a directorate expanding its capacity and work areas in a bid to boost technical assistance in purchase operations.

The Cabinet Division greenlighted the draft of Bangladesh Public Procurement Authority Act 2023 in a meeting headed by Prime Minister Sheikh Hasina on Monday, said Cabinet Secretary Md Mahbub Hossain.

He said the CPTU worked as a unit and would be made into an authority with “separate office”.

The CPTU formulates laws and rules of government purchases while providing technical support. These aspects of the unit would remain intact in the directorate, Mahbub said.

In early 2000s, government purchases totalled around Tk 180-190 billion, which has leapt to around Tk 2.20-2.25 trillion at present, he said.

“It is difficult for the staff in that office to provide proper technical support now.”

Initially, the headquarters would be based in Dhaka and later expand outside the capital if needed, he added.

The draft law mentioned the formation of a three-year term board of directors led by the planning minister as chairman.

The board has to approve procurement-related policies, formulation of strategy and legal framework, policies on governance and management of authority and development-related action plan.

According to the proposal, the Public Procurement Authority would regulate government purchase processes, ensure that all government procurement laws are followed, and be responsible for inspections, adjustment, management and supervision.