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.

Many governments finance public works projects through borrowing from the Multilateral Development Banks.  For more information, please refer to ”Project Financing" Section in “Trade and Project Financing”.
 
Public Procurement
As of June 2016, the legal framework for public procurement is determined by law 4281/2014. This law incorporated European Directives 2004/17/EC and 2004/18/EC into the Greek legal systems harmonizing the mandatory procedures for the scheduling overseeing and awarding public procurement contracts, supplies, services and works contracts also providing specific regulation for e-procurement, i.e. the award of public contracts via an independent electronic platform named “Promitheus,” controlled by the Greek State and accessible world-wide.  This law is likely to the be further amended, but the core of its provisions regarding public procurement awards remain un-influenced by the new European Union legal framework and will remain as is.    The new legislative framework includes the European Regulations EC 2015/2342, 2015/2341, 2015/2340.

According to the current resolution issued by the Ministry of Infrastructure and Transport and the Ministry of Finance, law 4281/2014 came into effect regarding the award of (a) public works and (b) design contracts on public works and related engineering services.
 
Law 2286/1995 and relevant bylaws provide tender guidelines and procedures to be adhered to by the supplier and one or more of the following entities.

  1. the State,
  2. local Government organizations,
  3. legal entities of public law,
  4. public enterprises,
  5. banks owned by the State,
  6. state owned legal entities of private law,
  7. enterprises associated with legal entities of private law, and
  8. associations formed by one or several of such bodies. 
In brief, Law 2286/1995 states the procurement of purchasing (goods), leasing, and the provision of services must be awarded through an announced public tender. The details of the procedures are prescribed in the Regulation of Public Procurement (Presidential Decree 394/1996)

The Greek government has attempted to establish one central procurement agency to offer the country economies of scale, and optimal control and application of common technical specifications.  The General Directorate of State Procurement plans, modifies and implements Greece’s Unified Government Supply Program.  Procurement actions follow three stages: stage one is the identification of the needs of all agencies and the drafting of the procurement program; stage two is publicizing the tender, selecting the best offer and awarding the contract to the winner; and stage three is the implementation of the contract.  The armed forces, municipalities, public hospitals, and the Public Power Corporation carry out procurement independently, pursuant to special procurement rules and regulations.  In certain instances, the General Secretariat of Commerce involvement is limited to the first phase of the tender.
 
U.S. company sworn affidavits can be submitted in place of documents normally issued in the United States, but not produced by U.S. federal government authorities.  
Defense procurement and military construction projects are governed by Law 3433/06, effective February 1, 2007, as well as other ministerial decrees, clarifications and decisions.  This law regulates procurement issues such as Domestic Added Value, Industrial Participation, Defense Materials Specifications, and the Offsets Programs.  The newly enacted Law 3883/2010 regulates the transitional arrangements for Offset Contracts that have been signed between the Ministry of Defense and various defense equipment suppliers.  The law impacts contracts that have expired without having been fulfilled, thus resulting in penalties by the Ministry of Defense.  These contracts may be re-established within six months from the date of issuance and the Ministry of Defense must provide a written declaration accompanying the re-established contract.  Additional information on this new law is available from CS Athens.
 
Greek Law on Public Private Partnerships (PPPs)
Public Private Partnerships (PPPs) are contractual agreements, usually long-term, between a public entity and a private counterpart, with the objective of implementing a project and/or providing a service.  Greek Law (Law 3389/2005) introduced regulation on Public Private Partnerships (PPPs) in Greece opening the market to this type of public procurement.  
 
In a PPP scheme, the private partner bears, in whole or in part, the implementation cost of the project, as well as a substantial part of the risks related with its construction and operation.  The public partner, on the other hand, lays out a set of output specifications on the design, technical, and operational characteristics of the project and determines the private partner’s payment mechanism, either through partial (e.g. annual) payments, or through direct payments by the end-users via fees.
 
Greek law intends to create a market-friendly legal framework, to abolish the approval of all concession agreements by Parliament (a current requirement) and to set a standardized procedure for the tendering of concession agreements.
 
The law mainly attempts to set a comprehensive procedure regarding the planning, approval, award and implementation phases of the whole range of PPPs by clearly defining the scope and minimum requirements of such projects.  Its ultimate aim is to ensure the attainment of the most efficient outcome by supporting the positive aspects of the whole scheme on the one hand, and by minimizing the possibilities for the occurrence of potential risks on the other.  Detailed information on the PPP law is available at the website of the Ministry of Infrastructure, Shipping & Tourism
 
European Union Directives and Public Procurement Restrictions
Policies governing the public procurement market in the EU have recently been revised and a new legislation on concession has also been adopted. Consequently, currently there are four relevant legislations:
  • Directive 2014/24/EU (replacing Directive 2004/18/EC) on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts applies to the general sector;
  • Directive 2014/25/EU (replacing Directive 2004/17/EC) coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors;
  • Directive 2009/81/EC on defense and sensi­tive security pro­cure­ment. This Directive sets Com­munity rules for the pro­cure­ment of arms, muni­tions and war material (plus related works and ser­vices) for defense pur­poses, but also for the pro­curement of sensi­tive supp­lies, works and ser­vices for non-mili­tary security pur­poses;
  • Directive 2014/23/EU on the award of concession contracts. A concession contract (either for the delivery of works or services) is conducted between a public authority and a private enterprise that gives the right to the company to build infrastructure and operate businesses that would normally fall within the jurisdiction of the public authority (e.g. highways).
For more information on EU public procurement Directives and restrictions, please consult the European Union Country Commercial Guide.
 
U.S. Commercial Service Liaison Offices at the Multilateral Development Banks (World Bank)
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including 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 Office to the World Bank.

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.