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Public Procurement in Mongolia

Public Procurement in Mongolia is a major component of public financial management and plays a central role in infrastructure development, social services, and economic modernization. Given Mongolia’s large geographic size, resource-based economy, and strong engagement with international development partners, public procurement represents a significant channel for government expenditure.

The procurement system in Mongolia is institutionally developed, legally defined, and digitally enabled. Procurement activities are carried out by public procuring entities nationwide and are coordinated through a centralized electronic procurement platform under the oversight of the State Procurement Agency.

For domestic firms and international suppliers, government tenders in Mongolia offer substantial opportunities across goods, works, and services, particularly in infrastructure, energy, public administration, and social sectors.

Country & Economic Overview

Mongolia’s economy is driven by mining, infrastructure investment, and public sector activity. Public procurement serves as a key mechanism for implementing national development programs and externally financed projects.

Public Procurement Governance Framework

The governance of public procurement in Mongolia is overseen by the State Procurement Agency and implemented by public procuring entities across all sectors.

The procurement system covers a wide range of sectors including agriculture, education, energy, health, transport, ICT, public administration, and utilities.

Legal & Regulatory Framework

The public procurement law in Mongolia is governed by the Public Procurement Law of Mongolia (PPLM), which establishes procurement principles, methods, and institutional responsibilities.

• Value for Money & MEAT: Article 6 of PPLM
• Life Cycle Costing: Article 6 and Article 28.4
• Total Cost of Ownership: Article 8
• Sustainability: Article 5.1.28 and Article 11.1.1
• SME Participation: Articles 8.7.5 and 10
• Bid Securities: Article 20
• Public Bid Openings: Article 26
• Domestic Preference: Articles 10 and 10*

The law also defines complaint resolution procedures, disclosure requirements, and legally binding timelines.

Procurement Procedures & Thresholds

Procurement procedures in Mongolia are regulated through the Public Procurement Law and Government Resolution No. 68 (2013).

• Open bidding requires a minimum advertisement period of 30 days.
• Limited bidding requires at least 15 days.
• Shopping methods require a minimum of 5 working days.
• Direct procurement is permitted for contracts up to 10 million tugrik.
• Standstill period: 5 working days for goods, works, and services.
• Bid validity: up to 30 days after bid opening.

Thresholds vary by procurement method and contract type and are strictly enforced.

E-Procurement System in Mongolia

The eProcurement system in Mongolia operates through the Unified Electronic Procurement System managed by the State Procurement Agency.

Tender documents are downloadable online, and procurement data is published in line with Open Contracting Data Standard practices.

Procurement Market Characteristics

Mongolia’s public procurement market is large and active, supported by a mature digital platform.

• Annual Tenders: 26,107
• Goods: Equipment, supplies, and consumables
• Works: Infrastructure, construction, and public works
• Services: Consulting and non-consulting services

Both domestic and international firms participate extensively, particularly in large infrastructure and donor-supported projects.

Transparency, Complaints & Oversight

The procurement system provides formal complaint mechanisms under Articles 54-56 of the PPLM. Procurement plans, tender notices, and award information are published through the national eProcurement platform.

Sustainability & Green Public Procurement

Sustainability and environmental considerations are embedded within the legal framework, allowing the application of green procurement criteria, particularly in infrastructure and public investment projects.

Social & Ethical Procurement Considerations

The procurement law supports SME participation and domestic preference measures. Social and ethical considerations are primarily implemented through statutory procurement provisions and donor-funded project requirements.

Key Challenges & Practical Insights for Bidders

• High competition in open electronic tenders
• Strict procedural and documentation requirements
• Capacity demands for large-scale contracts

Practical bidding tips

1. Register early on the national eProcurement platform.
2. Closely monitor procurement plans and tender notices.
3. Ensure full compliance with technical and legal requirements.
4. Leverage digital tools for timely bid submission.

Overall, Public Procurement in Mongolia represents a transparent, digitally advanced, and opportunity-rich procurement environment for qualified suppliers and contractors.