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.
Last Published: 2/13/2019

Malta occasionally borrows from Multilateral Development Banks, such as the European Investment Bank (EIB), to finance some public projects.  However, it finances most public projects through local and EU funding and public-private partnerships. Please refer to “Project Financing” Section in “Trade and Project Financing” for more information. 

Government purchases of capital equipment and supplies play an important role in the country’s commercial environment.  Malta is a member of the EU and adheres to the GATT Procurement Code.  The Department of Contracts, which falls under the Ministry of Finance, publishes tenders for government purchases and ensures adherence to stated conditions.  Normally, the Ministry that requests the goods/services in the tender has a final say in the award.

International obligations under the WTO Government Procurement Agreement (GPA) and EU-wide legislation under the EU Public Procurement Directives govern public procurement in Europe.  U.S.-based companies may bid on public tenders covered by the GPA, while European subsidiaries of U.S. companies may bid on all public procurement contracts covered by the EU Directives in the European Union.

The EU directives on public procurement have recently been revised, and new legislation on concession has also been adopted.  Member States were required to transpose the provisions of the new directives by April 16, 2016.  The four relevant directives are:

  • 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, setting Com­munity rules for the pro­cure­ment of arms, muni­tions and war material (plus related works and ser­vices) for defense pur­poses, and the pro­curement of sensi­tive supp­lies, works and ser­vices for non-mili­tary security pur­poses; and
  • Directive 2014/23/EU on the award of concession contracts – agreements between a public authority and a private enterprise that give the right to the company to build infrastructure (e.g. highways) and operate businesses that would normally fall within the jurisdiction of the public authority.
Electronic versions of the procurement documentation must be available through an internet URL immediately on publication of the Official Journal of the European Union (OJEU) contract notice.  Full electronic communication (with some exceptions) will become mandatory for public contracts from October 2018.  Central purchasing bodies also must publish their contracts and tenders.
Electronic invoicing (e-invoicing) will be introduced in the third quarter of 2018 in accordance with Directive 2014/55/EU, which makes receipt and processing of electronic invoices in public procurement obligatory.  The European Committee for Standardization (CEN) will develop standards for e-invoicing.

Certain restrictions on U.S. suppliers in the EU utilities sector exist.  Article 85 of Directive 2014/25 allows EU contracting authorities to either reject non-EU bids where the proportion of goods originating in non-EU countries exceeds 50 percent or give preference to the EU bid if prices are equivalent (meaning within a three percent margin).  Moreover, the Directive gives EU contracting authorities the right to suspend or restrict the award of service contracts in third countries where such countries provide no reciprocal access.
There are also restrictions in the EU coverage of the GPA that apply specifically to U.S.-based companies.  U.S. companies may not bid on works and services contracts procured by sub-central public contracting authorities in the following sectors:
  • Water sector
  • Airport services
  • Urban transport and railways sectors
  • Dredging services and procurement related to shipbuilding

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.