Decree-Law No. 1/2025 establishing the Code on Public Procurement and Contracts.

This Decree-Law approves the Code of Procurement and Public Contracts of Timor-Leste, establishing a comprehensive legal framework governing public procurement procedures, public contracts and related infringements. The principal objective of the Code is to modernise and strengthen the public procurement system by improving efficiency, transparency, accountability and legal certainty in the acquisition of goods, services and public works. The Code seeks to address shortcomings identified in the previous procurement regime by introducing more flexible procurement methods, clarifying institutional responsibilities, streamlining procedures and aligning procurement practices with international standards while safeguarding the public interest. A further key objective is to promote national economic development through measures favouring domestic suppliers and local content in public procurement, while maintaining principles of competition, transparency, equality and good governance. The Code introduces mechanisms such as restricted tenders, framework agreements, supplier registration systems, contract management structures, whistleblower protections, anti-corruption safeguards, electronic procurement procedures and strengthened enforcement measures. It also establishes rules governing contract execution, modification, dispute resolution, sanctions and oversight, with the aim of ensuring the efficient and accountable use of public resources and supporting the economic and social development of Timor-Leste.