President of the Republic Nikos Christodoulides has returned to Parliament the recently approved law amending the procedures for appeals to the Tenders Review Authority, citing legal uncertainty and lack of clarity in its provisions.

The bill, originally proposed by DISY MPs was passed on 25 September with 28 votes in favour and one against, aiming to curb abusive appeals that often delay major public projects.

The law sought to introduce stricter conditions for lodging appeals, including setting a minimum threshold of €1 million for cases eligible for submission to the TRA. It also required that any company requesting a suspension of a public contract must submit a guarantee letter, with its amount determined by the TRA based on the estimated value of the project.

However, in his remand letter sent to the House, President Christodoulides emphasized that the wording of the new provisions lacks clarity, raising issues of legal certainty and potential conflicts with EU Directive 89/665, which governs remedies in public procurement across the Union.

“The law, as drafted, introduces an obligation for a guarantee without specifying essential details, such as whether it must be a bank guarantee or a personal guarantee,” the President stated.

He further noted that key procedural aspects remain unregulated, including the timeframe for submitting the guarantee, the conditions for its release or forfeiture, and how this measure aligns with the strict procedural timelines for appeal hearings and contract suspensions.

Christodoulides warned that this lack of precision could undermine the principle of legal predictability and jeopardize the effectiveness of EU law, as individuals and companies must be able to foresee the consequences of legal provisions that affect them.

The proposed law aimed to balance public interest—by reducing frivolous appeals that stall infrastructure projects—with the right of economic operators to access justice. The inclusion of a €1 million threshold was a compromise reached after input from MPs across party lines, who sought to adjust the guarantee period to mitigate excessive burdens on bidders.

Currently, the law in force allows appeals for contracts valued over €500,000, while the proposed reform intended to raise this limit.

With the President’s remand, Parliament must now decide whether to uphold its initial vote or amend the text to address the legal and procedural ambiguities identified.