Azerbaijan public procurement increases to 10.8 bln manat in 2025

The total volume of public procurement in Azerbaijan reached 10.785 billion manat ($6.3 billion) in 2025, up 961.7 million manat, or 9.8%, from 2024, according to an official report.

Procurements conducted through competitive procedures totaled 4.897 billion manat, rising 408.9 million manat, or 9.1% year-on-year, and accounting for 45.4% of total public procurement.

Meanwhile, single-source procurements amounted to 5.887 billion manat, increasing by 552.8 million manat, or 10.4%, compared with the previous year.

Savings generated through competitive procurement also rose during the reporting period. Government savings increased to 1.068 billion manat in 2025, compared with 704.8 million manat in 2024, marking a 51.6% increase.

Most of the savings came from open tenders, which generated 1.033 billion manat in savings, 56.6% more than the previous year. Savings achieved through request-for-quotation procedures totaled 34.7 million manat.

A total of 9,965 competitive procurement procedures were held in 2025, including 4,191 open tenders and 5,774 request-for-quotation procedures. The value of open tenders reached 4.796 billion manat, while quotations accounted for 101.1 million manat.

The average number of bidders in procurement procedures increased slightly from 3.4 in 2024 to 3.5 in 2025, the report said.

Small and medium-sized enterprises accounted for more than 51.2% of participants in public procurement.

Suppliers submitted 1,730 complaints and inquiries related to procurement procedures during the year. Authorities identified violations in 298 cases, leading to the cancellation of the procedures. In 807 cases, explanations and recommendations were provided, while several other cases remain under review.

The total value of cancelled tenders amounted to 441.2 million manat in 2025, down 131 million manat, or 22.9%, year-on-year. The number of cancelled tenders fell 39.8% to 1,360 from 2,259 in 2024.

Authorities also implemented several digitalisation initiatives in the procurement sector during 2025, including the introduction of electronic contracts, integration with databases of various government institutions, and work on AI-based recommendation systems for procurement processes.