PM Suspends Large ICT Procurements for 30 Days for Evaluation
Latvia's Prime Minister has halted large information and communication technology procurements for a month to allow the industry to propose solutions for more efficient fund usage.
The Prime Minister has suspended large ICT procurements for 30 days for evaluation. The restrictions do not apply to procurements up to €142,000.
Following a meeting of the Information Society Council, the Prime Minister stated that this is not a halt but a review period during which the industry is invited to propose solutions. The next meeting with ICT industry representatives is scheduled for July 27.
The Prime Minister emphasized that no such high-level meetings with the industry have taken place in the last six years, despite significant increases in investments and the absorption of European Union funds. He stressed the need to use both borrowed state funds and EU money efficiently. ICT investments should boost productivity and benefit society and businesses.
The Prime Minister referred to public concerns about ICT project management. In the first six months of this year, approximately €30 million were spent on ICT service hour procurements, compared to €50 million last year. He criticized the practice of buying hours instead of end solutions, citing potential transparency and efficiency risks.
In 2024 and 2025, €452 million were spent on ICT projects, with 38% of projects handled by three companies. The Prime Minister suggested evaluating competition conditions and more often considering off-the-shelf solutions. He also noted that over 150 government agencies employ 1,664 IT specialists, yet outsourcing is also used.
Industry representatives at the meeting expressed readiness to offer proposals for improving the situation.
