Iceland is party to the WTO Agreement on Government Procurement.  On the national level, most procurement is the responsibility of Rikiskaup Central Public Procurement, an agency of the Icelandic Government.  As an EEA member, Iceland is obligated to follow EU procurement practices, which require that any public procurement more than a certain price limit must be tendered for competitive bidding through EU procedures.  Accordingly, Icelandic tenders are posted on the Tenders Electronic Daily (TED) website of the EU.  The main difficulty with the public tender process is that the bid deadline is often very short, which gives prospective U.S. bidders little time to respond, particularly if tender documents need to be translated from Icelandic.  Additional material on State tenders can be obtained from the Rikiskaup website, but it is not always available in English.

Potential opportunities for American investors include the Keflavik International Airport expansion project, the new national hospital, and renewable energy equipment.  Isavia, a public company that handles the operation and development of Keflavik International Airport, has embarked on $1-2 billion capital works project to expand and improve the airport.  Projects include extension of buildings, baggage screening and baggage handling systems, self-check in stations, waiting areas and retail/dining areas, check-in areas, bag-drop off areas, security areas, airbridges/gates for remote stands, re-modelling of existing terminal, de-icing platforms, new runway, new taxiway, and a new ATC tower.  For more information, please visit Isavia’s website.  A new national hospital is being raised currently, and the project will include construction of the building and securing new equipment.  Almost all of Iceland’s electricity is produced in hydroelectric and geothermal power plants.  There are three main electricity producers:  Landsvirkjun, which is state-owned; Reykjavík Energy, owned by three municipalities; and HS Energy, owned by local municipalities and private investors.  There is a nascent wind power sector and some interest in developing solar power, especially for off-grid uses.

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.

Financing of Projects

Icelandic pension funds are major investors in Iceland.  Iceland’s three commercial banks, Landsbankinn, Islandsbanki, and Arion Bank finance various commercial projects.  All companies have access to regular commercial banking services in Iceland.