Overview of Cumulative Orders Through April 2021
From January to April 2021, Korean companies recorded four overseas construction contracts in Bangladesh worth a cumulative $130M. Following two projects worth $85M in the first quarter, two additional projects worth $45M were secured in April, bringing achievement to 43.3% of the annual target of $300M. The pace of recovery after COVID-19 has been faster than expected, supported by improving site operations as vaccine deployment gained traction.
The two new April orders were a PGCB substation equipment package worth $30M and an LGED road equipment contract worth $15M. After earlier wins in the power sector with BPDB and in transport with RHD during the first quarter, the order portfolio expanded further into transmission infrastructure with PGCB and rural infrastructure with LGED, which is a constructive signal for sector diversification.
Details of New Orders in April
Of the two new April contracts, the PGCB substation equipment order worth $30M was awarded to Korean company B for a 132kV substation expansion project. The package included transformers, GIS equipment, and protective relays, and was tendered under international competitive bidding as part of the ADB Bangladesh Power System Enhancement program. The LGED road equipment order worth $15M covered compactors, small excavators, and loaders needed for a rural road improvement project.
| Project | Client | Value ($M) | Funding | Timing | Note |
|---|---|---|---|---|---|
| Gas turbine replacement | BPDB | 60 | ADB | January | 150MW class |
| National highway bridge rehabilitation | RHD | 25 | JICA | February | N1 corridor |
| Substation expansion | PGCB | 30 | ADB | April | 132kV |
| Rural road equipment | LGED | 15 | WB | April | compactors and loaders |
| Total | — | 130 | — | — | 4 projects, 4 firms |
| (Annual target) | — | (300) | — | — | 43.3% achieved |
Order Trend Analysis
Three points stand out in the January-April order trend. First, ADB-funded projects accounted for 69% of total orders, confirming that multilateral development banks remain the main source of opportunities. Second, the client base broadened across four agencies, BPDB, PGCB, RHD, and LGED, reducing reliance on any single institution. Third, participation by Korean firms expanded to four companies, indicating that the overall bidding base is widening. At 81% of the level seen in the same period of 2019, the market appears capable of returning to pre-pandemic levels if additional projects are secured in the second half.
Pipeline and Second-Half Outlook
Cumulative overseas construction orders through April 2021 reached four projects worth $130M, equivalent to 43.3% of the annual target, providing tangible evidence that the Bangladesh construction market was recovering after the pandemic shock. Orders were diversified across four agencies, BPDB, PGCB, RHD, and LGED, while ADB-funded projects represented 69% of the total and provided a relatively stable order base. Success in the second-half pipeline, especially the CCPP project worth $150M and the transmission line project worth $80M, would be decisive for meeting the annual target, while the improving COVID-19 situation was expected to normalize local operating conditions.