The Deputy Prime Minister and Minister for Finance and Economic Development, Hon. Panapasi Nelesone, tabled the Procurement Bill 2026 in Parliament during the October sitting.

In tabling the Bill, the Deputy Prime Minister highlighted the significance of having a strong legislative framework supported by effective tools, including electronic government procurement (e-procurement). He noted that e-procurement can help make procurement proceedings more efficient while strengthening the tracking of the process from beginning to end, thereby enhancing transparency and accountability.

The new Bill will replace the Public Procurement Act 2013 and introduces a number of important reforms aimed at improving the way public procurement is carried out in Tuvalu.
The key reforms include:
• Focusing on value for money rather than simply selecting the lowest-priced bid;
• Providing for the gradual introduction of electronic procurement (e-procurement) across government;
• Clarifying how the law applies to procuring entities and donor-funded projects;
• Strengthening procurement methods and procedures;
• Reducing the inappropriate use of emergency procurement and direct contracting;
• Improving compliance, accountability, and oversight;
• Introducing supplier debarment provisions and greater transparency around business ownership;
• Establishing a clearer complaints and appeals process, with political actors removed from the decision-making process.

Many of the detailed rules that will support the new procurement framework, such as procurement thresholds, emergency procurement requirements, evaluation methods, review panel procedures, and complaints processes, will be set out in the Procurement Regulations.

The Bill was developed with the support of the Asian Development Bank (ADB). An extensive stakeholder consultation process which involved government ministries, oversight agencies, state-owned enterprises, private sector representatives, and procurement specialists, including the Tuvalu Chamber of Commerce was conducted before the drafting of this Bill.

What happens next?

Following its First Reading in Parliament, the Bill will now be referred to the Falekaupule for review and comment. The Falekaupule may provide feedback and propose amendments through their respective Members of Parliament.

The Central Procurement Unit (CPU) is also working to organise outreach workshops in Funafuti and the outer islands to explain the technical aspects of the Bill and provide further opportunities for stakeholders to ask questions and share their views. These consultations will help ensure that stakeholders are better informed about the proposed reforms and that the consultation process is completed ahead of the next parliamentary session.

The Bill is expected to return to Parliament for its Second Reading in the parliamentary sitting of next year. During this stage, Members of Parliament will debate the objectives and key provisions of the Bill.If approved, the Bill will then proceed through the remaining parliamentary stages before being presented for assent and becoming law.
It is anticipated that the legislative process will be completed by mid-2027.

Members of the public, businesses, and other interested stakeholders are encouraged to provide feedback or seek further information on the Bill by contacting the Central Procurement Unit at procurement@gov.tv.