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Public Procurement in Albania

Public procurement in Albania plays a central role in delivering public services, developing infrastructure, and supporting economic activity across the country. Government entities at national and local levels rely on structured procurement processes to acquire goods, works, and services essential for administration, public utilities, transport, health, education, and digital transformation.

The Albanian public procurement framework is designed to promote transparency, competition, and value for money while aligning progressively with European standards. Over the past decade, the introduction of a mandatory electronic procurement platform has significantly reshaped how government tenders in Albania are published, managed, and awarded.

For domestic suppliers and international bidders alike, the Albanian procurement market offers access to publicly funded projects financed through national budgets as well as donor-supported programs. Understanding the legal framework, institutional setup, and practical bidding environment is essential for successful participation in Albania’s public tenders.

A. Country & Economic Overview

Region	Europe and Central Asia
Population	2,363,314 (as of January 1, 2025, per official INSTAT)
Income Level	Upper middle-income= GNI/capita $3956-$12,235
Currency	Albanian Lek (ALL)
GDP	USD 28.05 billion (forecast for end-2025; 2024 actual USD 27.18 billion)
GNI per Capita	USD 23,310 (PPP, 2024 latest available; nominal ~USD 10,300 equivalent)

Albania is classified as an upper middle-income economy and operates within a stable macroeconomic framework. The Albanian Lek is the official currency used for all public procurement transactions. Exchange rate risks may be relevant for international bidders, as procurement contracts are generally denominated in local currency.

Public procurement expenditure represents a meaningful component of government spending, supporting both routine public administration and large-scale development projects. Procurement activity is influenced by national budget priorities as well as financing from international financial institutions.

All economic and procurement-related figures above are based strictly on officially available data and are not recalculated or extrapolated

B. Public Procurement Governance Framework

The public procurement system in Albania is governed through a centralized institutional framework with clearly defined roles and responsibilities.

• Public Procurement Agency (PPA): The Public Procurement Agency is the main regulatory and supervisory authority responsible for overseeing compliance with public procurement law, issuing guidance, and maintaining the electronic procurement system.
• Central Purchasing Body (CPB): Albania operates a Central Purchasing Agency that conducts centralized procurement on behalf of public institutions, particularly for common-use goods and services.
• Relevant Ministry: The Ministry of Internal Affairs plays a key role in overseeing procurement-related institutional coordination.

Institution	Role
Public Procurement Agency	Regulation, oversight, guidance, eProcurement management
Central Purchasing Agency	Centralized procurement for selected sectors
Ministry of Internal Affairs	Policy coordination and administrative oversight

C. Legal & Regulatory Framework

Public procurement in Albania is governed by the Public Procurement Law, originally adopted in 2006 and subsequently updated. The law establishes the legal basis for planning, tendering, evaluation, and contract award processes across all contracting authorities.

Key principles embedded in the public procurement law in Albania include:

• Transparency and equal treatment of bidders
• Competition and non-discrimination
• Value for Money
• Accountability and public oversight

The law explicitly provides for:

• Use of the Most Economically Advantageous Tender (MEAT) evaluation method
• Bid securities and bid declarations
• Public bid opening procedures
• Specific provisions supporting SME participation

No domestic preference clauses are explicitly defined in the available legal references. Donor-funded projects may follow specific procurement rules defined by the financing institution, where applicable.

D. Procurement Procedures & Thresholds

Albania’s procurement framework distinguishes between open tendering and other procurement procedures in accordance with legal thresholds defined in procurement rules and regulations.

• Open procedures are the standard method for competitive procurement
• Direct contract awards are permitted under specific conditions defined by law
• Advertisement periods and bid validity rules are standardized across goods, works, and services

Process Element	Legal Reference
Bid Validity Period	Defined under Article 50, Public Procurement Law
Standstill Period	Applicable to goods, works, and services contracts
Complaint Resolution	Article 63, Public Procurement Law
Contract Award Disclosure	Mandatory under law

Exact numerical thresholds and time limits are defined in secondary legislation. Where specific values are not publicly disclosed in official summaries, they remain “Not publicly available".

E. eProcurement System Overview

Albania operates a fully mandatory electronic procurement platform known as the Sistemi i Prokurimit Elektronik (EPS).

• Launch Year: 2009
• Ownership Model: Government-owned and operated
• System Type: Proprietary build

The eProcurement system in Albania supports the full procurement lifecycle, including:

• Electronic publication of notices
• Online tender submission
• Electronic evaluation and award
• Procurement planning modules

The platform supports both Albanian and English languages and operates exclusively in the Albanian Lek. Advanced electronic certificate authentication is used for bidder verification. The system has been used for World Bank-financed procurement under National Competitive Bidding and Shopping methods, where applicable.

F. Procurement Market Characteristics

Government tenders in Albania cover procurement of goods, works, and services across multiple sectors. Works and services represent a significant share of procurement activity based on available award data.

• Works contracts: 1,869 awards
• Services contracts: 2,656 awards
• Contracts awarded to SMEs: 4,507

Both domestic and international suppliers are permitted to participate, subject to qualification requirements. Common Procurement Vocabulary (CPV) codes are used to classify tenders.

Evaluation methods include both Lowest Price and MEAT approaches, depending on the nature of the procurement.

G. Transparency, Complaints & Oversight

Albania’s procurement system includes formal mechanisms for complaints and review. Bidders may challenge procurement decisions within legally defined timeframes.

• Accepted complaints: 6
• Rejected complaints: 8
• Complaints under investigation: 4
• Cancelled procedures: 24

The Public Procurement Agency publishes annual reports and procurement statistics, contributing to public transparency. However, comprehensive consolidated datasets covering all performance indicators are not always publicly available.

H. Sustainability & Green Public Procurement

The Albanian government has adopted green public procurement strategies and a roadmap. While green procurement practices are encouraged, they are not mandatory under current legislation.

No specific green certifications or binding environmental standards for suppliers are mandated. Monitoring tools and disposal requirements aimed at minimizing environmental impact are reported as not publicly available.

The future development of sustainable procurement in Albania is expected to be guided by policy initiatives rather than legally binding procurement thresholds.

I. Social & Ethical Procurement Considerations

Albania’s procurement framework includes social considerations aimed at promoting equality and non-discrimination.

• Mandatory bidder declarations on non-discrimination and equal pay
• Measures supporting women’s participation in procurement processes
• No explicit legal requirements for adherence to international labor standards

Provisions for disadvantaged groups and ethical sourcing are not explicitly defined in publicly available procurement legislation.

J. Key Challenges & Practical Insights for Bidders

Despite a structured legal and electronic framework, bidders may encounter practical challenges when participating in public procurement in Albania.

• Limited availability of consolidated procurement statistics
• Capacity constraints at contracting authority level
• Variations between nationally funded and donor-funded procedures
• Language and documentation requirements for foreign bidders

Practical bidding tips:

1. Register early on the electronic procurement platform and test digital certificates in advance
2. Carefully review qualification and compliance requirements
3. Monitor clarifications and amendments during the tender period
4. Understand evaluation methodology before pricing submissions

When approached strategically, public procurement in Albania offers credible opportunities for suppliers, contractors, and consultants seeking to engage with a regulated and increasingly transparent government procurement market.

All procurement-related information presented above strictly reflects officially available reference data without estimation or recalculation.