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Tiesiogiai
Published: 30 march 2021 11:07

Unlocking Lithuania’s public procurement for foreign companies

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Public procurement in Lithuania can generate considerable business opportunities for foreign companies. However, not many of them decide to enter and participate in the procurement process leaving substantial amounts of money on the table. In 2019 the value of the Lithuanian public procurement market was around 6 billion euros. In the following years Lithuania‘s public procurement landscape will be shaped by significant infrastructure and energy projects, post-pandemic economy recovery plan and European Green Deal implementation. All these factors shall make public procurement in Lithuania more attractive for international bidders.

Green public procurement – opportunity to enter the market for foreign players

Lithuanian Government has already decided that from the year 2023 all public procurement (with minor exceptions) will have to be green procurement. Green Public Procurement (GPP) will create a significant demand for sustainable goods and services. Both bidders and contracting authorities are now on the same path of rethinking traditional buying practices and developing more sustainable and greener solutions. Therefore, contracting authorities can no longer exclusively rely on local tenderers and this creates business opportunities for new participants.

Lithuanian Government also announced 108 measures oriented towards achieving the goals of Lithuania's Green Course. Such measures will have an impact on public procurement in the transport, agriculture, construction, energy and other sectors. It has been decided to significantly
strengthen the mandatory use of environmental criteria in public procurement, implement funding measures to promote clean and efficient heating solutions, promote the use of renewable energy fuels in public transport, etc.

Attention to infrastructure projects

The substantial proportion of the current Lithuania‘s public procurement landscape is shaped by infrastructure and energy projects. For example, ambitious Rail Baltica, whose goal is to integrate the Baltic States into the European rail network, is continuing at full speed. State-owned company Litgrid is also planning to announce a tender for the construction of the Harmony Link marine cable, which is essential for Baltic electricity networks synchronization with Western Europe. The plans to look for a new contractor to complete Vilnius Cogeneration Plant after the Polish company Rafako stepped out were also announced. These and many other interesting projects create substantial opportunities for foreign companies to enter Lithuanian market.

Successful tendering requires homework

Many foreign businesses do not consider tendering in Lithuania or any other foreign country because of the language and cultural barriers or lack of knowledge about the local market. However, such issues could be easily addressed if a company takes time to plan the tendering and does the necessary homework. "Foreign companies, which are considering tendering in public procurement in Lithuania should always use qualified local advice and support regarding the process. Such support and legal help would make the tendering process much more effective from both financial and time perspective. Mistakes and lost opportunities in public procurements usually cost so much more than efforts, put into successful tendering,“ says Karolina Laurynaite, Head of public procurement & PPP practice at law firm TRINITI JUREX.

Having a larger number of foreign companies in Lithuania‘s public procurement would create a more diverse pool of suppliers and ensure competitiveness, which in some sectors is quite low. As Laura Kuoraite, Senior Advisor at Methodical Assistance Division at Public Procurement Office points out: "The number of procurements with a single bidder is still quite high. European Commission’s Single Market Scoreboard shows that in 2019 the proportion of contracts awarded in such procurement in Lithuania was 28 percent. It confirms that there is still a lot of space for healthy competition."

Law Firm Triniti Jurex, together with the Public Procurement Office in Lithuania, invites foreign businesses to make first steps towards tendering in Lithuania and getting to know the key aspects of successful tendering in Lithuania‘s public procurements. The event is supported by the major chambers of commerce in Lithuania, including the German-Baltic Chamber of Commerce, Polish-Lithuanian Chamber of Commerce, French – Lithuanian Chamber of Commerce, The British Chamber of Commerce, Finnish-Lithuanian Chamber of Commerce, Norwegian Chamber of Commerce in Lithuania and Danish Chamber of Commerce in Lithuania.

The virtual event will be held on April 1, 10 AM (CET). Please register for the event and get your invitation here.

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