Research

Overseas Construction Orders Through May 2021: Mid-Year Review

Overview of Cumulative Orders Through May 2021

From January to May 2021, Korean companies secured five overseas construction projects in Bangladesh worth a cumulative USD 165 million. That represents an additional USD 35 million compared with the cumulative USD 130 million recorded through April, bringing performance to 55% of the annual target of USD 300 million.

The sole new contract in May was a USD 35 million solar power plant ordered by SREDA, marking the first award in renewable energy for a Korean contractor in the Bangladesh market. Reaching 55% of the annual goal by the midpoint of the first half suggests the target remains achievable, although second-half bidding for the BPDB CCPP project will be the decisive variable.

5
Cumulative Projects
Jan-May
$165M
Cumulative Value
55% of target
1 project
May New Award
$35M solar
$125M
Power Total
76% share
$40M
Transport Total
24% share
5
Awarding Agencies
including SREDA
First award
Solar Entry
renewables foothold
$135M
2H Requirement
to hit target

New Order in May: Solar Power Plant

The new May order, a USD 35 million solar power plant from SREDA (Sustainable and Renewable Energy Development Authority), covers the construction of a 50MW ground-mounted solar facility. Korean Company D won the contract on an EPC basis, including solar modules, inverters, and structural systems in a turnkey package.

The project aligns with the Bangladesh government's 2030 renewable energy target of lifting clean generation to 10% of total power output. As the first solar award secured by a Korean firm in this market, it creates a meaningful reference point for follow-on opportunities in both solar and wind projects.

Cumulative Overseas Construction Orders, January-May 2021
ProjectClientValue (USD M)FundingTimingSector
Gas turbine replacementBPDB60ADBJanuaryPower
National highway bridge repairRHD25JICAFebruaryTransport
Substation expansionPGCB30ADBAprilPower
Rural road equipmentLGED15WBAprilTransport
Solar power plantSREDA35GCFMayRenewables
Total5 agencies165--55%

Mid-Year Review

Order Mix by Segment
Power generation$60M (36%) - BPDB
Transmission & substation$30M (18%) - PGCB
Renewables$35M (21%) - first solar win
Transport & civil works$40M (24%) - RHD and LGED
Target Achievement Outlook
Current total$165M / $300M (55%)
Required in 2H$135M (USD 22.5M per month)
If CCPP is won$315M (105%)
If CCPP is missed$230M (77%) est.

The most encouraging mid-year signal is the diversification of the order portfolio. Korean firms secured projects from five different clients across four segments: power, transmission, renewables, and transport. That reduces dependence on any single sector or agency and improves resilience in future bidding cycles.

The USD 35 million solar contract is especially important because it strengthens the market position of Korean companies in Bangladesh's emerging renewable energy sector. Even so, the BPDB combined cycle power plant tender, estimated at USD 150 million, remains the single largest determinant of whether the annual order target will be achieved or exceeded.

Second-Half Strategy and Pipeline

01
Advance the CCPP bid in earnest
Prequalification for the BPDB 300MW CCPP project, valued at USD 150 million, is scheduled for June. Korean Company A is participating as the lead contractor with a JV comprising two local construction firms. A draft technical proposal has been completed for internal review, and pre-consultation with ADB procurement specialists has confirmed alignment with the technical specifications. A win would become one of the largest single contracts secured in Bangladesh.
02
Prepare for the PGCB transmission line tender
Bidding for a USD 80 million PGCB 230kV transmission line project is expected in July. Korean Company B is preparing an offer that includes transformer and GIS packages. The recent substation expansion contract awarded in April has already strengthened relations with PGCB, and this new tender falls under an ADB power system enhancement program.
03
Pursue follow-on solar opportunities
The first solar award in May should be used as a springboard to identify additional SREDA projects. Bangladesh is targeting 1,000MW of solar capacity by 2025, with support from sources including the Green Climate Fund and ADB climate finance windows. Korean Company D can use its May reference project to pursue additional projects at the 100MW scale.
04
Normalize field operations after the pandemic shock
As of May 2021, COVID-19 cases in Bangladesh were easing, although variant risks still remained. Korean companies increased on-site dispatch personnel from five in the first quarter to 15 by May. In the second half, the plan is to shift toward a resident team of more than 30 people to strengthen project execution and supervision.
Strategic Path from the First Half to the Second Half of 2021
May cumulative
$165M (55%)
CCPP PQ
June prequalification
PGCB tender
July transmission line
Additional solar
100MW target pipeline
Annual goal
$300M+
Overseas Construction Orders Through April 2021Review cumulative orders through April and the early recovery indicators
Overseas Construction Orders in the First Quarter of 2021See the detailed first-quarter order pipeline and the COVID-era recovery analysis

The cumulative overseas construction performance through May 2021 confirms that post-pandemic recovery was gaining traction, with five projects worth USD 165 million already secured. The first solar power plant award opened a new path in renewable energy, while diversification across five client agencies improved the overall quality of the order portfolio.

Looking ahead, the CCPP and transmission line tenders in the second half will have the greatest influence on annual performance. If both pipelines progress favorably, Korean contractors could not only meet but exceed the original annual target and deepen their presence in Bangladesh's energy and infrastructure markets.

overseas constructionorder performance2021may cumulativesolar power
Overseas Construction Orders Through May 2021: Mid-Year Review | Dhaka Trade Portal