Meet the Law - New Public Procurement Law in Angola

A new Public Procurement Law (Law 41/20 of 23 December) has been recently published in Angola, and will come into force on 22 January 2021.

This diploma has brought many relevant changes to the previous regime, among which we highlight the following:

Two new Procurement Procedures: Two new Procurement Procedures are introduced:

(iii)    Emergency Procurement Procedure: A simplified procedure for emergency situations, which can be used only when the respective contracting public authority is not responsible and "the time limits or formalities laid down for other public procurement procedures cannot be met".

(iv)    Electronic Dynamic Procedure: A simplified procurement procedure as well, carried out through electronic auction, and which does not require an Assessment Committee. Its swiftness varies according to the value.

Security Deposit: The existence of a temporary security deposit is eliminated and only a definitive security deposit is to be provided by the successful tenderer when entering into the definitive contract. The value of the security is fixed by the contracting public authority and may vary between 5% and 15% of the contract price.

Penalty regime: Unlike the previous public procurement law, this new diploma establishes a penalty regime applicable to the transgressions, which may be punished by means of a fine and ban on participation.

The value of the respective fine will vary according to the seriousness of the transgression, having as minimum and maximum values:

•    For natural persons: 360,000 AOA (three hundred and sixty thousand kwanzas) and 2,160,000 AOA (two million one hundred and sixty thousand kwanzas) – respectively, around USD 550 (five hundred and fifty dollars) and USD 3,300 (three thousand and three hundred dollars) at the current exchange rate; and

•    For legal persons: 1.800.000 AOA (one million and eight hundred kwanzas) e 10.080.000 AOA (ten million and eighty thousand kwanzas) – respectively, around 2,750 USD (two thousand seven hundred and fifty dollars) and 16,500 USD (sixteen thousand and five hundred dollars) at the current exchange rate;

The New Public Procurement Law will apply to public procurement procedures initiated after the date of its entry into force and to the execution of contracts that emerge therefrom.