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Public Procurement in Cambodia

Public procurement in Cambodia plays a critical role in the delivery of public services, infrastructure development, and implementation of national development plans. Procurement activities are primarily managed by central and sub-national government entities under the oversight of the Ministry of Economy and Finance, reflecting a largely centralized fiscal and administrative system.

The Cambodian public procurement framework is rules-based and guided by sub-decrees and implementing regulations that define procurement methods, evaluation procedures, and accountability mechanisms. Government procurement spans goods, works, and services across sectors such as transport, construction, education, health, agriculture, and public administration.

For domestic suppliers and international firms, Public Procurement in Cambodia represents a developing but structured market, influenced by international development partners and aligned progressively with international procurement principles.

Country & Economic Overview

Cambodia is a member of the IMF, ADB, IFAD, UNCTAD, and WTO. These memberships shape procurement practices, particularly for donor-funded and development-financed projects.

Public Procurement Governance Framework

The primary authority responsible for public procurement policy and oversight in Cambodia is the Ministry of Economy and Finance (MEF). The MEF issues procurement regulations, standard bidding documents, and guidance applicable to government entities.

Procurement activities are carried out by individual line ministries, provincial administrations, and public institutions under the regulatory oversight of the MEF.

Legal & Regulatory Framework

Cambodia’s public procurement system is governed by a series of sub-decrees, manuals, and implementing regulations, rather than a single consolidated procurement law. Key legal instruments include the Procurement Manual and related sub-decrees issued by the Ministry of Economy and Finance.

Key regulatory provisions include:

• Value for Money (VfM): Clause 3.7.1
• Most Economically Advantageous Tender (MEAT): Clause 18.1.1
• Bid securities and declarations: Clauses 17.4.100-17.4.14
• Public bid opening procedures: Clause 16
• Complaint resolution mechanism: Clause 4.6

Total Cost of Ownership, Life Cycle Costing, and sustainability-specific clauses are not explicitly regulated in the current framework.

Procurement Procedures & Thresholds

The procurement framework provides defined procedures for open bidding, limited bidding, and direct contracting, depending on the value and nature of procurement.

Thresholds and disclosure requirements are governed by Clauses 9.2 and 10.7 of the procurement regulations. Advertisement periods for goods, works, and services are regulated under Clause 15.3.

Bid validity periods for all contract types are regulated under Clause 5.2, ensuring uniformity across procurement categories.

E-Procurement and Digitalization

Cambodia does not yet operate a comprehensive national eProcurement system for government-wide use. Procurement processes remain largely manual, with paper-based bidding and physical submission of documents.

There is no mandatory requirement for the use of electronic government procurement, and procurement data are not currently published under the Open Contracting Data Standard (OCDS).

Procurement Market Characteristics

Comprehensive national statistics on annual tenders, contract values, and award distribution are not publicly consolidated. However, public procurement constitutes a significant component of government expenditure, particularly in infrastructure, public works, and social sector investments.

Procurement is predominantly domestic in nature, with international participation mainly occurring in donor-funded projects financed by multilateral development banks.

Transparency, Complaints & Oversight

Procurement transparency is ensured through mandatory public bid openings and publication of procurement notices in accordance with regulatory requirements.

The complaint resolution process is governed by Clause 4.6 of the procurement regulations, providing suppliers with an administrative review mechanism. Standstill periods are not explicitly regulated.

Sustainability & Green Public Procurement

Cambodia does not currently have a national green public procurement strategy or mandatory sustainability requirements within its procurement framework.

Environmental and social considerations are generally addressed through sector-specific regulations or donor-imposed requirements rather than through procurement legislation.

Social & Ethical Procurement Considerations

The current procurement framework does not provide preferential treatment for women-owned businesses, SMEs, or disadvantaged groups.

There are no explicit legal requirements for suppliers to adhere to international labor standards or ethical sourcing principles under public procurement regulations.

Key Challenges & Practical Insights for Bidders

Bidders interested in public procurement opportunities in Cambodia should consider the following:

• Procurement processes remain largely manual and documentation-intensive
• Strong emphasis on compliance with bidding instructions and timelines
• Procurement rules may vary across ministries and projects
• Donor-funded projects often follow separate procurement guidelines

In conclusion, Public Procurement in Cambodia operates within a developing regulatory environment characterized by centralized oversight, manual procedures, and increasing alignment with international standards. For suppliers with a strong understanding of local regulations and administrative processes, the Cambodian public procurement market offers growing opportunities aligned with the country’s ongoing economic development.