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Public Procurement in Armenia

Public Procurement in Armenia is a core instrument of public financial management and an essential mechanism for delivering government services, infrastructure, and public works across the country. Public procurement supports fiscal discipline, market competition, and transparency, while enabling the Armenian government to efficiently allocate public resources.

The procurement system operates under a centralized regulatory framework led by the Ministry of Finance, with decentralized implementation across national and local contracting authorities. Armenia has made substantial progress in digitizing procurement processes, enhancing transparency, and aligning its procurement practices with international standards supported by multilateral development institutions.

For domestic suppliers and international firms, government tenders in Armenia offer structured access to a transparent, rules-based procurement market. The availability of comprehensive eProcurement platforms, defined complaint mechanisms, and published procurement statistics strengthens confidence for bidders seeking predictable and compliant contracting opportunities.

Country & Economic Overview

Public procurement expenditure accounts for approximately 4.4% of GDP, reflecting the scale of public purchasing relative to Armenia’s overall economic output.

Public Procurement Governance Framework

Public procurement governance in Armenia is centralized at the policy and regulatory level, with operational responsibility distributed across contracting authorities.

• Public Procurement Authority (PPA): Ministry of Finance of the Republic of Armenia
• Primary role: Policy formulation, regulatory oversight, and operation of national procurement systems
• Central Purchasing Body: Not applicable
• Geographic coverage: National

The Ministry of Finance also oversees capacity building and certification of procurement professionals across the public sector.

Legal & Regulatory Framework

The public procurement law in Armenia is governed by national procurement legislation administered by the Ministry of Finance. The legal framework defines procurement planning, tendering methods, evaluation criteria, contract award procedures, and dispute resolution mechanisms.

Key principles embedded in the law include:

• Value for Money (Article 3)
• Transparency and equal treatment of bidders
• Competition and proportionality
• Accountability and public disclosure

Contract awards may be based on the Most Economically Advantageous Tender (MEAT), as established under Article 18.5. The framework does not include formal provisions for Total Cost of Ownership or Life Cycle Costing.

Procurement Procedures & Thresholds

Procurement timelines, disclosure requirements, and award procedures are formally regulated, providing legal certainty to participating bidders.

E-Procurement System Overview

Armenia operates a mature national eProcurement system in Armenia that supports the full procurement lifecycle.

• ARMEPS: Electronic Procurement System
• PPCM: Procurement Planning and Contract Management module

The system is government-owned and operated, with procurement data published in alignment with Open Contracting Data Standard (OCDS) requirements.

Procurement Market Characteristics

Armenia’s public procurement market is active and data-rich, covering a wide range of procurement categories.

• Annual tenders exceed 124,000 procedures
• Goods, works, and services are procured at scale
• Domestic suppliers dominate contract awards
• Evaluation commonly uses the lowest price method, with MEAT applied selectively

Average bidder participation varies by category, with higher competition observed in works contracts.

Transparency, Complaints & Oversight

Transparency and accountability are core strengths of Armenia’s procurement system.

• Mandatory electronic publication of tenders and awards
• Accessible procurement statistics and annual reports
• Formal administrative and judicial complaint mechanisms

Complaint resolution is structured, with an average resolution period of 30 days.

Sustainability & Green Public Procurement

Armenia has introduced a policy framework for green public procurement.

• Government-approved green procurement practices adopted in 2022
• Green procurement is encouraged but not mandatory
• No fixed spending targets or sector mandates defined

Environmental considerations may be incorporated into procurement procedures in accordance with government decisions.

Social & Ethical Procurement Considerations

The procurement framework does not establish mandatory social procurement quotas or preferential schemes.

• No statutory set-asides for women-owned or disadvantaged businesses
• No mandatory international labor standards embedded in procurement law
• General compliance with national legal obligations applies to suppliers

Key Challenges & Practical Insights for Bidders

Key challenges

• High volume of low-value procedures requiring administrative efficiency
• Price-driven competition in many procurement categories
• Technical compliance requirements within electronic systems

Practical bidding insights

1. Register and maintain accurate profiles on ARMEPS and PPCM platforms.
2. Monitor tender announcements regularly due to high procurement frequency.
3. Ensure electronic signature readiness and document compliance.
4. Understand evaluation methodology prior to bid submission.

Public Procurement in Armenia represents one of the most transparent and digitized procurement environments in the Europe and Central Asia region. For suppliers, contractors, and consultants, success depends on procedural precision, familiarity with electronic systems, and a competitive pricing and compliance strategy aligned with Armenia’s robust public procurement framework.