Public Procurement Law in Morocco

Public procurement serves as a vital engine for the Moroccan economy, representing a significant portion of the national Gross Domestic Product (GDP). It is the mechanism through which the state, local authorities, and public institutions acquire goods, services, and infrastructure works necessary for public service delivery.

The legal framework governing these transactions has undergone substantial reforms to enhance transparency, encourage competition, and support the growth of local enterprises. Understanding these regulations is essential for any business—whether local or international—seeking to engage with the Moroccan public sector.

The Regulatory Framework and Recent Reforms

The primary legal instrument governing government contracts in Morocco is the Decree on Public Procurement. Most recently, Decree No. 2.22.431, issued on March 8, 2023 (15 Sha'ban 1444), unified the rules applicable to various public entities. This decree aims to modernise the bidding process and ensure that public funds are managed with the highest standards of integrity.

While the Decree on Public Procurement is the central pillar, it operates alongside other specific laws. For instance, Law No. 50.21 relating to credit institutions (Reference 1) defines certain financial entities and their roles, while Law No. 19.06 (Reference 2) mandates statistical declarations for external exchanges, which can impact international firms involved in large-scale Moroccan infrastructure projects.

Preferential Treatment for Local and Small Enterprises

One of the most significant aspects of the current Moroccan procurement law is the "National Preference" and the strategic support for small businesses. These measures are designed to strengthen the domestic industrial fabric.

Support for SMEs and Self-Employed Individuals

According to Article 148 of Decree No. 2.22.431 (Reference 6), project owners (public entities) are legally required to reserve 30% of the total estimated amount of their annual contracts for specific categories of Moroccan entities. These include:

• Very Small, Small, and Medium-Sized Enterprises (SMEs).
• Innovative young startups.
• Cooperatives and unions of cooperatives.
• Self-employed entrepreneurs (Auto-entrepreneurs).

The 15% Preference Margin

When evaluating tenders for study services, Moroccan law provides a competitive edge to local firms. If a non-resident competitor submits a financial bid, a 15% increase is applied to their bid price for comparison purposes. However, this penalty does not apply to groupings (consortiums) where Moroccan resident firms hold a stake of at least 30% (Reference 6).

Classification and Qualification of Construction Firms

For businesses in the construction and public works sector, simply submitting a bid is not enough. Under the decree established for the Ministry of Equipment and Transport (Reference 4), there is a mandatory system for the "classification and qualification" of construction enterprises.

This system categorizes companies based on their technical capabilities, financial health, and past experience. It ensures that only firms with the appropriate resources can bid on projects of a certain scale or complexity. It is important to note that Article 17 of this regulation specifies that these classification requirements do not apply to contracts below a certain threshold or to foreign firms not resident in Morocco, although foreign firms often face other equivalence requirements.

Intellectual Property and Copyright in Public Contracts

When public procurement involves creative works, software development, or architectural designs, the Law No. 25.19 relating to the Moroccan Office of Copyright and Related Rights (BMDA) becomes relevant.

Article 40 of Law No. 25.19 (Reference 3) establishes that the "Moroccan Office of Copyright and Related Rights" replaces the former "Moroccan Copyright Office" in all legislative texts. This institution ensures that the rights of creators are protected during the execution of government contracts. When a public entity commissions a work, the contract must clearly define the transfer of intellectual property rights, ensuring compliance with Law No. 2.00 regarding copyright.

International Investment and Dispute Resolution

Morocco has long been a destination for international mining and infrastructure investment. Law No. 1.84, which encourages mining investments (Reference 5), highlights the importance of international agreements in public-private partnerships.

For foreign investors engaged in large government projects, Moroccan law recognises international arbitration and dispute resolution mechanisms. This includes:

• The Arab Investment Guarantee Corporation agreements.
• The Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID).

These references provide a layer of legal security for international contractors, ensuring that disputes arising from government contracts can be settled through internationally recognized legal frameworks.

Conclusion and Key Takeaways

Navigating the landscape of public procurement in Morocco requires a thorough understanding of both administrative decrees and specific sectoral laws. The legal environment is increasingly geared towards digital transparency and the promotion of local economic actors.

Key Takeaways:

• The 30% Quota: Public entities must allocate 30% of their annual procurement budget to Moroccan SMEs, cooperatives, and self-employed individuals.
• National Preference: Foreign firms bidding on study-related services face a 15% price adjustment unless they partner with a Moroccan firm (minimum 30% stake).
• Sectoral Compliance: Construction firms must adhere to the classification system of the Ministry of Equipment and Transport.
• Statistical Obligations: Under Law 19.06, financial transactions between residents and non-residents during contract execution must be declared for the balance of payments.

Businesses looking to succeed in Moroccan tenders should focus on building local partnerships and ensuring their administrative files comply strictly with the qualification requirements set out in the latest decrees.

---

Related Search Terms

9anoun ai, 9anon ai, kanon ai, kanoun ai, qanon ai, qanoun ai