Practices of sustainable procurement in Local Government Engineering Department (LGED), Bangladesh: a case study of ADB funded project

Abstract

This dissertation is submitted as a partial requirement for the Master’s Degree in Public Procurement and Supply chain Management under BRAC Institute of Government and Development (BIGD), BRAC University. In Bangladesh, LGED is one of the largest public sector organizations, responsible for planning and implementing rural, urban, and small-scale water resources infrastructure development programs, involving large-scale procurement of goods, works, and services. This thesis explores the sustainable procurement practices within the Local Government Engineering Department (LGED) of Bangladesh, particularly focusing on the Asian Development Bank (ADB)-funded projects. Public procurement plays a critical role in shaping the infrastructure of developing nations, and sustainable procurement integrates social, economic, and environmental considerations into these projects. The study aims to assess the current practices, preparedness, barriers, and potential solutions for implementing sustainable procurement within LGED, drawing from international best practices and lessons learned from ADB-funded projects. The research reveals that while LGED has made commendable strides in aligning with sustainable procurement goals, significant challenges remain. These include financial constraints, bureaucratic hurdles, limited training, and lack of supplier readiness. Opportunities for improvement lie in policy revisions, capacity-building programs, and supplier engagement initiatives. The report concludes with actionable recommendations for LGED to enhance its sustainable procurement practices and align them with the country's long-term development goals. A case study has been conducted with LGED officials of Head Quarter, District and Upazila level addressing three aspects of sustainability to know the present scenario of procurement practice and find out the opportunities and barriers to adopt the sustainability in the public sector procurement in “Rural Connectivity Improvement Project (RCIP), LGED HQ. From interview survey through the questionnaires, it is found that the preparedness of the field level professional is quite satisfactory but due to different the practices of sustainability in procurement cannot be done effectively. A clear and formal commitment is necessary between the top level of government and Upazila level through proper channel for effective sustainable development. Additionally, raising awareness among contractors, local leaders, and beneficiaries about public procurement processes is critical to simplifying sustainable public procurement. Overcoming major obstacles, such as financial constraints, land acquisition challenges, and bureaucratic complexities, can create greater opportunities for integrating sustainability into LGED’s procurement practices at the field level. This study underscores the importance of a coordinated approach to enable LGED to advance its sustainable procurement objectives.