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Public Procurement in Cyprus

Public procurement in Cyprus constitutes a core component of public sector governance, enabling government entities to acquire goods, works, and services necessary for public administration, infrastructure development, and service delivery. The procurement system operates within a comprehensive legal framework aligned with European Union principles of transparency, competition, and equal treatment.

Government purchasing plays a meaningful role in public expenditure management and economic activity, offering structured opportunities for domestic and international suppliers. Competitive tendering, legal oversight, and electronic procurement tools form the backbone of public procurement operations in Cyprus.

For contractors, consultants, and suppliers, understanding how public procurement in Cyprus functions-its institutions, procedures, and compliance expectations-is essential for effective participation in government tenders.

Country & Economic Overview

Public Procurement Governance Framework

Public procurement oversight in Cyprus is supported by dedicated institutional arrangements that ensure legality and accountability in public contracting. The Tenders Review Authority plays a key role in the review and oversight of procurement procedures.

Contracting authorities across central and local government entities are responsible for conducting procurement procedures in accordance with national legislation and EU-aligned rules.

Legal & Regulatory Framework

Public procurement in Cyprus is governed by a comprehensive legislative framework that transposes EU public procurement directives into national law. The legislation defines procurement procedures, evaluation methods, legal remedies, and supplier obligations.

• Public Procurement Law: National legislation under N. 73(I)/2016 and related legal instruments
• Value for Money: Article 28(6) N. 73(I)/2016
• Most Economically Advantageous Tender (MEAT): Article 27(4) and (11) N. 73(I)/2016
• Life-Cycle Costing: Annex I, Part A, Article 2 N. 73(I)/2016
• Public Bid Openings: Article 24(2) N. 73(I)/2016

The legal framework applies uniformly to goods, works, and services procurement unless specific provisions provide otherwise.

Procurement Procedures & Thresholds

Procurement procedures in Cyprus are structured to promote open competition and transparency. Competitive tendering is the standard method, with defined procedural safeguards.

• Standstill period for goods, works, and services contracts: Article 28(5) N. 73(I)/2016
• Tender threshold values defined under Article 9 N. 73(I)/2016
• Procedures governed by legally prescribed tendering and evaluation rules

Contract award decisions are subject to review and oversight mechanisms to ensure compliance with procurement law.

E-Procurement System Overview

Cyprus operates a centralized national electronic procurement platform known as E-PPS, which supports end-to-end electronic public procurement.

Procurement Market Characteristics

Public procurement in Cyprus covers a wide range of goods, works, and services required by public authorities. Both domestic and international suppliers may participate in tenders under equal treatment principles.

Contract awards may be evaluated using quality-based criteria such as MEAT or other methods permitted by law, depending on the nature of the procurement.

Transparency, Complaints & Oversight

The procurement system incorporates transparency and accountability through legal remedies and review mechanisms. The Tenders Review Authority handles procurement-related complaints and disputes.

Procurement statistics and annual reports are published through official electronic procurement and government portals.

Sustainability & Green Public Procurement

Cyprus has established a formal green public procurement strategy and action plan. Environmental considerations are integrated into procurement procedures through mandatory and optional criteria.

• Green procurement is mandatory for air-conditioning systems and road transport vehicles
• Environmental management and quality assurance standards are referenced in procurement law
• Priority sectors include education, energy, transport, water, and public administration

The Cyprus Institute Office of Procurement and Contracts acts as the lead body for green public procurement governance.

Social & Ethical Procurement Considerations

Public procurement legislation in Cyprus incorporates social and ethical considerations through general procurement principles and contract award provisions.

• Provisions supporting disadvantaged groups under contracting principles
• Supplier obligations to adhere to international labor standards, including child labor and human trafficking conventions

Key Challenges & Practical Insights for Bidders

• Ensure full compliance with EU-aligned procurement legislation
• Use the e-PPS platform for monitoring and submitting tenders
• Prepare bids in accordance with MEAT and quality-based evaluation criteria
• Monitor standstill periods and complaint mechanisms where applicable

A clear understanding of Cyprus’s legal framework and electronic procurement environment significantly enhances bidders’ ability to compete successfully in government tenders.