Latvia public procurement ICT reforms

In mid‑July 2026 Latvia’s Ministry of Finance issued a cabinet protocol requiring all state bodies to reassess large public contracts—above €140,000 for goods and services or €1 million for construction—by 1 September 2026. The review targets ICT projects, examining necessity, cost justification, proportionality, alternatives and risks such as price inflation or supplier dependence. The measure forms part of a broader procurement reform intended to cut bureaucracy, shorten procedures, increase competition and save an estimated 2–4 % of spending.

A few days later the Ministry of Intelligent Administration and Regional Development (VARAM) reported that state and municipal ICT spending is set to reach €277.65 million in 2025, a 58.5 % rise on the previous year. It highlighted low tender competition, fragmented project management, heavy reliance on external providers and limited transparency, and proposed three reforms: a unified benefit‑assessment framework with centralized risk monitoring, consolidation of ICT support into competence‑center structures, and revised procurement rules to broaden competition, including an EU‑level e‑procurement catalogue review.

On 26 July 2026 the government extended the moratorium on large ICT procurements until a single authority is appointed to oversee the process. Prime Minister Andris Kulbergs noted that a working group had already saved about €5 million. Backed by the Information Society Council, Minister Edgars Tavars’ proposals call for a centralized ICT department, unified project evaluation, public oversight, competence centres and an upgraded electronic procurement platform, aiming for clearer planning, greater transparency and stronger economic justification for public digital projects.