Procurement Issues in Donor-Funded International Development Projects

Abstract

This study investigated the critical procurement challenges faced by international development (ID) projects in Bangladesh. Initially, a framework of challenges was developed via literature review. We then ranked the importance of these challenges and categorized them based on interview data and analytical hierarchy processing analysis. Interviews were conducted with procurement experts from three major ID project stakeholder groups: donor organizations, host country government policymakers, and project implementation units. The most important categories of challenges were those related to project management capacity/capability, and ethics. More specifically, the challenges deemed most important were those related to improper project planning, undue practices in procurement implementation, government bureaucracy and interference in procurement, and inexperienced procurement staff. This paper contributes to the ID project procurement literature by identifying the critical challenges to procurement, which differ from those of other project-related areas. The findings may assist the multibillion-dollar ID project procurement industry in Bangladesh by highlighting the major issues that require effective management by all stakeholders. Ultimately, this may improve procurement outcomes and overall project performance.