Selling to the Government
Republic of Cyprus:
For most projects or large-scale purchases, the ROC is required to issue a tender or request for proposals (RFPs) following EU procurement regulations. Tender documents are typically released in the Greek language, which is an official EU language. In certain instances, usually for big projects, the tender documents are also released in English. The United States continues to encourage the ROC to issue more tender documents in English to attract international bidders, particularly on ICT and other global sector tenders. U.S. companies can bid on any tender either directly or through a local agent or partner. Ministry technical committees evaluate government tenders. Bids are usually evaluated first on technical merit and then on cost, depending on the value of the project. Bidders on government contracts are advised to offer products/services that meet exact tender specifications. Semi-governmental organizations have their own tender boards and evaluating committees. Under the procurement law, evaluating and awarding tenders is the responsibility of each Ministry’s or state-owned enterprise’s tender board. A Tenders Review Authority (TRA) examines complaints from bidders and ensures project awards are not mishandled. The ROC posts all tenders on its e-procurement website where prospective bidders can acquire tender documents, submit their proposals, register, and receive more detailed information on how the website works. Companies interested in receiving information on issued tenders can register on the e-procurement website as suppliers. There is also a link for intended procurement announcements of upcoming tenders.
The ROC agreed to abide by the World Trade Organization Government Procurement Agreement by way of its accession to the European Union in 2004.
Information on upcoming tenders is also available through the U.S. Embassy in Nicosia, Political/Economic Section (e-mail: nicosiaecon@state.gov).
U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information.”
Area Administered by Turkish Cypriots:
The “Central Tenders Commission (CTC)” (Note: website only available in the Turkish language) at the “Ministry of Finance” is responsible for all “government” tenders except those issued by “municipalities.” Each “municipality” has its own tender board and follows its own regulations and procedures for issuing a tender. Tenders are announced in the “Official Gazette” or in a minimum of two local Turkish-language newspapers. Most large tenders permit participation from international companies, who can participate through an agent, or with a local partner if the tender specifications clearly state the tender is open for international participation. The agent or partner must be fully registered in the area administered by Turkish Cypriots to represent any international company.
Financing of Projects
Republic of Cyprus:
Cyprus’s sovereign credit rating as of September 29, 2023, is investment grade: BBB by both Fitch and S&P, and Baa2 by Moody’s (following a two-notch upgrade).
A list of the current ratings is available from the Ministry of Finance.
Obtaining credit from local banks has become easier in the last few years, although it is still constrained by the general trend towards deleveraging and stricter lending criteria following recapitalization of the banking sector. Banks in Cyprus employ all modern methods of cross-border financing, including letters of credit, bills for collection, documentary credit, and cash against documents.
Multilateral Development Banks and Financing Government Sales:
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). The Guide to Doing Business with Multilateral Development Banks overviews how to work with MDBs. The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
Learn more by contacting the:
- Commercial Liaison Office to the European Bank for Reconstruction and Development
- Commercial Liaison Office to the World Bank.
Area Administered by Turkish Cypriots:
Domestic banks and Turkish Cypriot businesses have limited access to international capital.