From our London office at Holborn Gate, 330 High Holborn, London, WC1V 7QH, England, we advise international engineering and project management consultancies on cross-border engagements in Bangladesh. This note highlights practical, non‑jurisdictional considerations for clients evaluating or operating in the country’s infrastructure, energy and construction sectors.

Market and project delivery considerations

Bangladesh presents significant opportunities for large‑scale infrastructure and energy projects. Project sponsors and consultants should assess local market conditions early: public procurement routes and timelines, viability of public‑private partnership (PPP) structures, and the maturity of local supply chains. Early engagement with local advisers, technical partners and insurers helps align programme planning with on‑the‑ground constraints such as permitting, land access and community engagement.

Contracting, allocation of risk and dispute resolution

Standard international forms (for example FIDIC) are frequently used but often adapted to local procurement rules and financier requirements. Key commercial issues to consider include:

• clear scope definition and change control procedures to manage scope creep;
• robust time and cost risk allocation, including liquidated damages, extensions of time and relief events;
• performance security, parent company guarantees and insurance placement in line with project bankability;
• subcontractor management and flow‑down of obligations and warranties.

International arbitration seated in a neutral forum is commonly preferred for cross‑border disputes, but parties should assess enforceability and local court intervention risks. Consider practical dispute avoidance measures: structured dispute boards, early neutral evaluation and escalation protocols.

Regulatory, tax and compliance considerations

Projects in Bangladesh typically engage multiple regulators—planning, environment, customs, energy and local authorities. Important cross‑cutting matters include foreign exchange and repatriation rules, customs duties on imported plant and equipment, corporate and withholding tax exposures, labour and immigration requirements for expatriate staff, and environmental and social impact obligations.

Anti‑corruption and compliance controls are critical. Undertake enhanced due diligence on local partners and advisers, adopt clear procurement and gifts‑and‑hospitality policies, and ensure contractual rights to audit and remedy suspected misconduct.

Practical checklist for entering or delivering projects

1. Conduct legal, commercial and ESG due diligence on counterparties, land and permits.
2. Engage experienced local counsel and technical advisers at bid stage.
3. Agree clear contracting strategy (form, seat, governing law and security package).
4. Confirm requirements for work permits, visas and local labour rules for expatriate teams.
5. Assess tax exposures, customs treatment and foreign exchange repatriation early.
6. Secure appropriate insurance and project guarantees; test enforceability of security documents.
7. Establish compliance controls, anti‑bribery due diligence and reporting channels.
8. Plan for dispute avoidance: dispute boards, milestone review meetings and robust change procedures.

Jurisdiction and sources

For authoritative information consult the relevant official sources:

• Government of the People’s Republic of Bangladesh (official portal)
• Bangladesh Investment Development Authority (BIDA)
• Bangladesh Bank (central bank)
• National Board of Revenue (tax authority)
• Public Procurement Regulatory Authority (procurement rules)
• Department of Environment
• FIDIC (standard forms and guidance)

General information only; not legal advice and not a substitute for advice on a particular matter.