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Public Procurement in Hungary

Public procurement in Hungary represents a mature, centralised, and legally robust procurement ecosystem that is fully aligned with European Union public procurement directives. As a high-income EU member state, Hungary operates a procurement system designed to ensure transparency, competition, efficient use of public funds, and strategic policy delivery through public spending.

Public procurement plays a pivotal role in Hungary’s public finance architecture, supporting large-scale infrastructure development, public utilities, healthcare, education, digital government, energy procurement, and EU-funded investment programmes. Procurement procedures are strictly regulated, digitally enforced, and subject to extensive oversight and remedies.

For domestic suppliers, SMEs, and international contractors, government tenders in Hungary provide a predictable, data-rich, and enforceable market environment characterised by mandatory eProcurement, published statistics, and clearly codified procedures.

Country & Economic Overview

Hungary’s procurement market is influenced by EU cohesion funding cycles, national development plans, and centralised purchasing mandates, making procurement activity both cyclical and policy-driven.

Public Procurement Governance & Institutional Structure

Hungary operates a centralised and authority-driven procurement governance model. Oversight, regulation, monitoring, and enforcement are institutionally separated to ensure compliance and accountability.

• Public Procurement Authority (PPA): Public Procurement Authority of Hungary
• PPA Websites:
  • https://www.kozbeszerzes.hu/
  • https://kozbeszerzes.hu/english/
• Central Purchasing Body (CPB): Yes
• Key Central Purchasing Entities:
  • Ministry of Finance - KEF (general centralized procurement)
  • Digital Government Agency (DKÜ Zrt.) - IT procurement
  • National Communications Office (NKOH) - government communications

Centralised procurement covers strategic and high-value categories such as energy, IT systems, telecommunications, vehicles, office supplies, healthcare products, and framework agreements.

Legal & Regulatory Framework

Hungarian public procurement is governed by a comprehensive Public Procurement Act that transposes EU Directives 2014/24/EU and 2014/25/EU into national law.

• Primary Legislation: Hungarian Public Procurement Act
• Legal Portal: https://kozbeszerzes.hu/english/hungarian-public-procurement-rules/

The law applies to goods, works, services, concessions, and design contests and establishes mandatory procedural rules, transparency obligations, and legal remedies.

Core Procurement Principles & Award Methodologies

Contracting authorities are encouraged to use quality-based and life-cycle approaches rather than lowest-price-only awards, particularly for complex works and services.

Procurement Procedures, Thresholds & Timelines

• Tender Thresholds: Article 15 (national and EU thresholds)
• Standstill Period: Article 131 (mandatory)
• Bid Validity: Articles 70 and 54
• Contract Award Disclosure: Mandatory for all procedures (Article 37)
• Direct Contracting: No fixed monetary threshold (exception-based)

Indicative Timelines:

• Below EU thresholds: ~65 days (advertisement to award)
• Above EU thresholds: ~122 days
• Average bid evaluation:
  • Below EU thresholds: 38 days
  • Above EU thresholds: 76 days

National eProcurement System (EKR)

Hungary mandates the use of a single national eProcurement platform for all public procurement procedures.

• System Name: Electronic Public Procurement System (EKR)
• Website: https://ekr.gov.hu
• Launch Year: 2018
• Mandatory Usage: Yes
• Languages: Hungarian, English
• Tender Documents: Fully downloadable

EKR supports notice publication, electronic submission, evaluation workflows, award decisions, contract disclosure, and public access to procurement data.

Procurement Market Size & Structure

The procurement market is dominated by construction and infrastructure works, followed by services and goods procurement.

Competition, Remedies & Oversight

• Average Bidders per Tender:
  • Goods: 2.7
  • Works: 3.5
  • Services: 2.9
• Accepted Complaints: 298
• Rejected Complaints: 236
• Average Resolution Period: 29 days
• Cancelled Procedures: 1,761

Hungary provides structured legal remedies, including preliminary dispute settlement and formal legal review procedures.

Green & Sustainable Public Procurement

Hungary has adopted a formal Green Public Procurement Strategy (2022 - 2027) with partially mandatory requirements.

• Mandatory green criteria in public catering and food procurement
• Minimum local and short supply-chain sourcing requirements
• Green procurement spend target: 30%
• Lead Authority: Public Procurement Authority of Hungary
• Green criteria portal: https://fenntarthato.kozbeszerzes.hu/

Transparency, Reporting & Data Availability

• Annual Reports: https://kozbeszerzes.hu/english/annual-reports/
• Procurement Statistics:
  • https://kozbeszerzes.hu/statisztika/
  • https://kozbeszerzes.hu/english/flash-reports/

Key Practical Insights for Bidders

• Mandatory use of EKR for all tenders
• Strong emphasis on formal compliance and documentation
• MEAT increasingly preferred over lowest price
• High transparency and post-award disclosure
• Significant opportunities through framework agreements
• Growing importance of green and social criteria

Conclusion: Public procurement in Hungary offers a highly structured, transparent, and digitally enforced procurement environment. With strong EU alignment, centralised purchasing, mandatory e-procurement, and expanding sustainability requirements, Hungary remains a strategically important procurement market for domestic and international suppliers seeking long-term public sector opportunities.