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Public Procurement in Peru

Reinforcing Capacity and Co-ordination

image of Public Procurement in Peru

Public procurement is becoming a strategic tool in Peru for achieving key policy objectives. The legislative reforms enacted in 2016 indicate a strong commitment from the government to modernise the public procurement system. In fact, the system is currently going through a transitional period, moving from excessive formalities and complex tendering processes to prioritizing results and value for money. This report examines ongoing public procurement reforms in Peru, focusing on issues such as procurement processes, participation in tenders, and the culture of integrity in the public procurement process. It provides guidance to help Peru implement reforms that enhance the efficiency, transparency and accountability of the system.

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Executive Summary

In Peru, public procurement accounts for the majority of government expenditure an impressive 50.7% and 11.6% of GDP, which is in line with the OECD average. This show how crucial public procurement is for the country's economy and society as a whole. It is a critical channel for delivering services to citizens, and an area where the public and private spheres intersect. Recognising the strategic role of public procurement, public authorities in Peru have been undertaking major reforms of the system since 2016. In doing so, they are gradually nudging the culture towards result-based management and introducing a new vision for public procurement officials. The legislative and institutional reforms enacted in January 2016 and the legislative adjustments made in 2017 are steps toward a better-functioning public procurement system.

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