Market Intelligence

Individual Project Award Details: Bangladesh Overseas Construction Through August 2021

Overview of Individual Project Award Details

This report organizes detailed information on individual projects awarded to Korean construction companies in Bangladesh on a cumulative basis through August 2021. It analyzes the client, contract value, scope of work, funding source, project duration, and the role of each Korean firm.

2021 saw the resumption of post-COVID Bangladesh infrastructure investment, with a concentration of project awards under JICA, EDCF, and ADB multilateral financing. Korean companies secured over USD 1.2 billion in projects across three sectors — power, transport, and special economic zones — strengthening their foothold in Bangladesh's overseas construction market. Understanding the specifics of individual projects helps companies build reference cases for future similar bids and understand procurement patterns by ordering agency.

15+
Cases Reviewed
Jan-Aug 2021
$1.2B+
Total Contract Value
aggregate
$350M
Largest Single Contract
Power plant EPC
$5M
Smallest Single Contract
Equipment supply
$80M
Average Contract
per project
8+
Ordering Agencies
public and private
25%
EDCF Share
Korean ODA-linked
36 months
Average Duration
project average

Project-Level Award Details

Bangladesh Overseas Construction Projects Through August 2021
ProjectKorean CompanyContract ValueClientFundingDuration
Matarbari LNG Power PlantKorea E&C$350MBPDBJICA48 months
Dhaka MRT Line-6 Package 2Korea Construction B$200MDMTCLJICA42 months
Mirsarai SEZ InfrastructureGlobal E&C Korea$180MBEZAEDCF36 months
132kV Transmission LineKorea Hanwha E&C$100MPGCBADB30 months
Chittagong Water Treatment FacilityKorea Construction C$80MCWASAADB36 months
Bangabandhu Access RoadKorea Mart E&C$60MRHDWB30 months
SEZ Power InfrastructureKorea Steel E&C$50MBEZAEDCF24 months
Dhaka Commercial BuildingKorean JV$40MPrivate sectorInternal24 months

Detailed Analysis of Core Projects

Matarbari LNG Power Plant (Korea E&C)
Capacity600MW combined cycle (Phase 1)
ConfigurationGTx2 + HRSGx2 + STx1
Duration48 months (2021-2025)
Key NoteJICA tied loan; Phase 1 of the 3,600MW Matarbari project
Dhaka MRT Line-6 Package 2 (Korea Construction B)
Section12km elevated alignment (Package 2)
ScopePiers, girders, 4 stations
Duration42 months (2021-2024)
Key NoteJICA loan; Korean firms awarded 2 packages of the $2.8B MRT total

Competition Analysis by Funding Source

The competitive intensity in Bangladesh's overseas construction market varies greatly by funding source. EDCF (Economic Development Cooperation Fund)-linked projects require 70%+ Korean equipment and machinery, giving Korean firms a near-exclusive advantage. By contrast, ADB and World Bank international competitive bidding (ICB) projects face direct competition from Chinese firms, which win approximately 60% of bids. JICA loans are partially tied, prioritizing Japanese equipment, but Korean firms are permitted to participate in construction.

Competitive Landscape by Funding Source
FundingKorean Competitive EdgeCompetitorsProcurement ConditionsBD Allocation
EDCF (Korean ODA)Strongest (near-exclusive)Korean firms only70%+ Korean procurement$1.2B (2021 basis)
JICA (Japanese ODA)Moderate (construction participation)Japan / Korea / ChinaJapanese equipment priority$3.5B+ cumulative
ADB ICBLow (price competition)China 60% / othersInternational competitive bid$2.1B pipeline
World Bank ICBLow (technical competition)China / India / EuropeInternational competitive bid$1.8B pipeline
Own FinancingMedium (relationship-based)China / India / KoreaClient's own decisionMany small projects

Contract Pattern Analysis

01
Funding-Specific Contract Characteristics
JICA loan projects sometimes include partial tied conditions requiring Japanese equipment, meaning Korean contractors must collaborate with Japanese vendors. EDCF projects require 70%+ Korean equipment and machinery, which works strongly in favor of Korean firms. The 2021 EDCF allocation to Bangladesh of $1.2B is the largest ever, making EDCF project pipelines the most stable contracting base for Korean companies.
02
Contract Structure Analysis
Most awards are EPC turnkey contracts, though some transport and civil works projects are procured as construction-only packages. The Matarbari Power Plant ($350M) and BEZA infrastructure ($180M) are EPC turnkey, while MRT packages ($200M) use a construction and installation (C&I) format. Design-and-build (D&B) contracts are also increasing, making Korean design capability an increasingly important competitive factor.
03
Payment Terms
Multilateral-financed (JICA/ADB/WB) projects offer stable payment conditions, while Bangladesh-self-funded projects can experience payment delays due to foreign exchange shortages. Securing payment via letter of credit or escrow structures is important, and K-SURE overseas construction export insurance can be used as a risk hedge. Bangladesh held approximately $42B in FX reserves in 2021, making self-funded project payments relatively stable.
04
Defect Liability and Operations & Maintenance
The defect liability period for overseas construction projects in Bangladesh is typically two to three years, with power plant projects adding a five-year performance guarantee. Signing a separate O&M contract after plant completion can generate an additional long-term revenue stream of $3M-8M per year. With total investment in BEZA special economic zones exceeding $2B, the future O&M market is expected to grow substantially.

Sector Breakdown Analysis

Power / Energy Sector ($550M+)
Share46% (largest sector)
Representative ProjectsMatarbari LNG $350M + SEZ Power $50M+
Future PipelineFSRU $800M, CCGT $600M
Competitive EdgeEDCF linkage / JICA construction participation
Transport / Infrastructure Sector ($400M+)
Share33% (2nd largest sector)
Representative ProjectsMRT Line-6 $200M + Access Road $60M
Future PipelineMRT Line-1 / 6 extension, highways
Competitive EdgeJICA loan construction references

From Award to Completion

Overseas Construction Project Execution Flow
Bid and Award
PQ → bid → award
Contract and Mobilization
LOA received → EPC contract signed
Design and Procurement
Basic / detailed engineering → equipment orders
Construction and Commissioning
On-site construction → performance testing
Handover and O&M
Completion handover → defect liability / O&M contract

Project-level analysis enables a clear understanding of the competitive landscape and contract conditions by funding source. In particular, EDCF-linked projects ($1.2B allocated) offer the most favorable conditions for Korean companies, making early monitoring of the EDCF pipeline and coordination with the Ministry of Economy and Finance and the Export-Import Bank central to contracting strategy. Leveraging major references such as Matarbari LNG (Korea Motors E&C / $350M) and MRT Line-6 (코리아GS E&C / $200M) for follow-on contracting in similar projects is equally important. Bangladesh's overseas construction pipeline is expected to sustain $1B+ annually beyond 2025, centered on power, transport, and special economic zones. Early intelligence from KOTRA Dhaka and building a local agent network will be decisive factors in winning work.

Overseas Construction Awards Through August 2021See the consolidated performance of awards through August 2021
Overseas Construction Dashboard 2020-2023Review four years of combined project performance and KPI trends
project awardsconstructionEDCFJICApower plantMRT2021
Individual Project Award Details: Bangladesh Overseas Construction Through August 2021 | Dhaka Trade Portal