The government conducts most of its international purchases through public international tenders. These tenders are published widely in local media.  Decree #34 of 2018 requires all ministries, non-administrative public institutions, and state-owned companies to use the government’s e-procurement system. 

Legislation permits the granting of certain contracts without recourse to public tender, and some companies have had success approaching the public sector with public-private partnership proposals.  

Tunisia’s Association Agreement with the EU bars non-EU companies from certain major tenders receiving EU financing.  Government agencies tend to adhere to tender regulations and specifications.   

U.S. bidders on Tunisian tenders should not assume that potential customers are looking for bidders to design solutions to a given problem. Government agencies typically arrive at desired solutions through pre-tender studies and then solicit specific equipment or services. Favorable financing terms often outweigh other factors, such as history with the bidder or proven reliability of a certain technology.

Submitted bids that do not meet tender specifications, even if technically superior to the solicited proposal, usually will be disqualified. Bids that are not delivered by the tender deadline may be disqualified without further consideration.  U.S. bidders interested in submitting proposals that deviate from the original required specifications should do so only as a clearly identified alternative and ensure that it would not disqualify a bid.

The government has a reputation for lengthy contract deliberation processes, and U.S. firms are advised to take this into consideration upon submitting initial bids. Bid bonds between 1% and 10% of the bid value are common on government contracts. The government will generally adhere strictly to contract and tender specifications.  It will expect similar adherence from the contractor. Since 2011, government ministries have a certain degree of autonomy in selecting top bids, although the Commission Supérieure des Marchés, a quasi-independent contracting oversight office at the Prime Ministry, will ultimately confirm tender awards after performing its own due diligence. Some major contracts require approval by the Tunisian Parliament. 

U.S. firms should be aware of the factors that influence the government’s evaluation of bids, including:

• job creation,
• contribution to the local economy via investment in or partnership with a Tunisian entity,
• transfer of skills or technology,
• long-term financial impact (cost, financing packages, impact on the trade balance), and/or
• geographic location (investments serving underprivileged areas will likely be favored).

While U.S. bids have typically been competitive on price and technology, European firms historically have benefited from stronger financing packages and links to the local economy. Both U.S. and European companies may face challenges when competing with companies backed by governments, such as that of the People’s Republic of China (PRC), that may offer generous financing programs.

Recent cases have demonstrated a lack of transparency and delays in the decision-making process in various types of tenders, particularly in the power and infrastructure sectors. However, there is no evidence that indicates American companies have specifically been targeted or intentionally placed at a disadvantage. Tunisia is neither a party to the WTO Agreement on Government Procurement nor a party to a free-trade agreement (FTA) with the United States.

U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Department of Commerce International Trade Administration, the Advocacy Center, coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with the U.S. Commercial Service worldwide network 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 agencies expressing support for the U.S. bidders directly to the foreign government.  Consult Advocacy for Foreign Government Contracts for additional information.

Financing of Projects

Project financing is generally available for established borrowers. However, banks are often reluctant to deal with newer firms. Bankers describe the Tunisian market as one in which the supply of short-term commercial credit exceeds demand, although a significant lending gap is evident for start-ups and small and medium-sized businesses that do not have land or other types of traditional secured collateral. Private equity and microfinance are underdeveloped.  This limits financing options for entrepreneurs and businesses.

For U.S. exporters, financing facilities are available through the Export-Import Bank of the United States (EXIM). While EXIM lending has focused largely on transactions with state enterprises, EXIM is receptive to greater private sector involvement in Tunisia. U.S. companies competing for government tenders are advised to work closely with the U.S. Embassy in Tunis and EXIM once evidence of a foreign competitor’s ability to obtain concessionary financing becomes clear.

Excellent financing terms offered by European and Asian suppliers present an obstacle for U.S. companies. However, EXIM will strive to offer concessionary financing to help U.S. companies be more competitive in foreign markets.

The U.S. International Development Finance Corporation (DFC) is operational in Tunisia and partners with the private sector. DFC invests across sectors, including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards.

The U.S. Trade and Development Agency (USTDA) assists U.S. firms, and its services include funding for conducting feasibility studies, conditional training grants, and trade development missions. U.S. companies may also take advantage of procurement opportunities funded by multilateral development banks. 

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). A helpful guide for working with the MDBs is the Trade Finance Guide. The U.S. Department of Commerce’s (USDOC) 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 African Development Bank
• Commercial Liaison Office to the Asian Development Bank
• Commercial Liaison Office to the European Bank for Reconstruction and Development
• Commercial Liaison Office to the World Bank.