Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.

In September 2011, the Republic of Armenia became the first CIS country and 15th Party to accede to the WTO’s Government Procurement Agreement (GPA) and recently signed the revised GPA. 

The new Procurement Law of the Republic of Armenia (2016) entered into force April 25, 2017 introducing new anti-corruption measures and increasing the transparency and effectiveness of the system. The law regulates the government procurement in line with GPA requirements and provides for the participation of foreign nationals on equal basis in public sector procurement. Since 2011, state government authorities carry out their procurements independently. Procurement decentralization aims at improving the organization of procurement procedure for state and communities’ needs, increasing publicity and transparency.  As a result the participation and responsibility of state government authorities in procurement procedure have increased. 

Armenia’s state procurement regulations seek to provide international standards of transparency and public accountability.  However, what appears in print and what happens in practice can be very different.  The time allowed for preparing bids after the announcement of a tender is frequently short and documentation requirements, including translations, can be onerous for companies not based in Armenia. A lack of transparency in business dealings remain. However the new Government has articulated its willingness to improve public procurement in line with best international practice and obligations

Most of the government’s large purchases are connected to programs funded by international financial donors. Ministries purchase foreign goods through public foreign trade companies and international tenders. Credit terms are one of the most important factors in government purchasing decisions.  Product quality and supplier reputation are other factors. U.S. companies are advised to approach any government tender deliberately.  However, lucrative opportunities do exist and American companies have had success in Armenia. 
Continuous reforms of the procurement system are among the priorities of the Ministry of Finance. Procurement appeals body and appeals council have been established for this purpose. Emphasizing the transparency of procurement procedure, the Ministry of Finance publicizes all information regarding procurement, including procurement contracts.
 
Minsitry of Finance  - (http://www.minfin.am/hy/page/petakan_gnumneri_olort/)
Procurment System –(http://gnumner.am/en/) 
E-Procurment System (http://www.armeps.am/epps/home.do)
Information about tenders is available also from the individual ministries- (http://www.gov.am/en/structure)

Like many governments Armenia finances public works projects through borrowing from the Multilateral Development Banks. Please refer to “Project Financing” Section in “Trade and Project Financing” for more information. 

U.S. Commercial Service Liaison Offices at the Multilateral Development Banks

(European Bank for Reconstruction and Development, Asian Development Bank, World Bank)
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the European Bank for Reconstruction and Development, the Asian Development Bank, and the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the European Bank for Reconstruction and Development, the Asian Development Bank and the World Bank.
 

Web Resources

Commercial Liaison Office to the European Bank for Reconstruction and Development -(http://export.gov/ebrd)
Commercial Liaison Office to Asian Development Bank- (http://www.export.gov/adb/ )
Commercial Liaison Office to the World Bank – (http://export.gov/worldbank)

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.