First agreement of its kind will enable 100.000 Chilean companies to more efficiently bid on contracts for IDB-financed goods and services

The Inter-American Development Bank announced that Chile is the first country whose public procurement system will be accepted by the Bank for use in projects it finances.

The decision is the result of an IDB evaluation of Chile’s public procurement system which concluded the country meets international best practices in the area of public contracts and procurement.

This evaluation followed the requirements set out in the “Guide for Acceptance of the Use of Country Procurement Systems,” which the IDB approved in June of 2010 based on best practice indicators established by the Organization for Economic Cooperation and Development (OECD).

The evaluation also confirmed the findings of an earlier evaluation of Chile’s public procurement system, conducted by the IDB in 2008, which found that the country has achieved an advanced level of development in this area, thanks to a legal framework that guarantees equal opportunities, efficiency, transparency and effective management of public contracts.

The agreement between the Chile and the IDB will enable approximately 100,000 companies that are already registered with the “ChileCompra” system to automatically access procurement opportunities associated with projects financed by the IDB. These companies will avoid duplicating processes when bidding on IDB contracts, thereby reducing transaction costs and contributing to greater efficiency.

IDB-financed procurement opportunities include consulting services, related goods and services, and construction projects within certain limits.

“The IDB is the first multilateral organization to agree to accept the use of a country’s national procurement system in the region,” said María Camila Uribe, the Bank’s representative in Chile. “The fact that Chile is the first country that meets all these requirements is a testament to its institutional maturity and innovation in the area of transparent public contracting.”