Faroese government urged to introduce stricter rules for municipal procurement

The Faroese Competition Authority has called for new legislation to regulate public procurement and tenders in the country’s municipalities, following a survey revealing widespread concerns over unfair practices, Kringvarp Føroya reports.

A third of businesses participating in municipal procurement processes reported experiencing unfair treatment, according to the authority’s findings. Respondents cited factors such as the contracting municipality’s location, personal connections within local government, or irregular practices—including bribery—as influencing tender outcomes.

The survey also highlighted demands for greater transparency and easier access to procurement opportunities. Businesses proposed establishing a single national and municipal procurement portal to improve oversight and simplify bidding. They further called for stronger enforcement of existing rules and clearer guidelines to prevent skewed competition.

The Competition Authority will now consult with the Minister of Labour to determine next steps. Current regulations for state institutions may also be updated as part of the proposed reforms.