Peru : Country Procurement Assessment Report (CPAR), Update

Abstract

Since the 2001 CPAR, Peru has made considerable progress in setting in motion the right conditions to improve public procurement. The primary regulator for procurement, the High Council for Government Procurement (CONSUCODE), has been strengthened; the development of the e-government procurement system has begun; significant training initiatives are underway; and important amendments have been made to the procurement law and its regulations. In addition, a very good Integrated Financial Management System has been implemented in all public sector entities. These initial achievements in procurement reform have complemented a deepening democratization process and Peru's impressive macroeconomic performance over the last few years. Several institutions play important roles, defined by law, in public sector procurement. However, there is no unifying vision of the system's objectives and priorities. Consequently, the initial reforms implemented by the Government were not framed within a comprehensive policy that includes a consistent strategy on how to move forward with the reform program and establishes clear leadership. Recommended short term actions include bringing all key institutions to an agreement for a detailed reform strategy with clearly defined leadership and objectives; emphasizing prevention over control and consolidating the supervisory role of the CONSUCODE; adopting a set of tools in the short-term to facilitate implementation of the reform; carrying out in-depth market studies, reviewing the Government supply processes, and implementing cost reduction strategies; and accelerating the development of e-government procurement. Mid-term actions include further streamlining the regulatory framework; and engaging civil society in a more constructive fashion. Suggested long-term actions include significantly strengthening human resource infrastructure and the procurement capacity of local governments.