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IDB approves the use of public procurement systems in eight Latin American and Caribbean Countries

Argentina, Bolivia, Costa Rica, El Salvador, Jamaica, Panama, Paraguay, and Peru may now use procurement subsystems on Bank financed projects

This approval reflects the countries’ efforts to improve their public procurement systems, which represent a $800 billion market in the region. The impact of these efforts is measured by various indicators, including market access, which has increased significantly as 70 percent of all public procurement opportunities are today accessible through electronic means. 

The decision establishes the basis to expedite contracting processes by avoiding duplication and reducing transaction costs. The systems that may be used are shopping, framework agreements, reverse auction, and selection of individual consultants. 

Moreover, this approval represents a step towards a potential use of the entire national system, as in the case of Brazil, Chile, Ecuador and Mexico. 

Best International Practices 

The IDB’s approval results from the assessment of these systems, and their compliance with international standards and practices. These standards are listed in the Guide for Acceptance of the Use of Country Procurement Systems, and were approved by the Bank in June 2010 based on OECD best practices indicators.