Inter-American Development Bank IDB Project Procurement – Inclusive Market Access May 2015

US$800 billion Market for public procurement of LAC per year LAC Public Procurement Market – Key Data US$800 billion Market for public procurement of LAC per year 15% of LAC’s GDP Equivalent to a road that will go 48 times around the world

Programs for micro, small and medium-sized enterprises LAC Public Procurement Market – Key Reforms during Past Decade 2012 Programs for micro, small and medium-sized enterprises Implementation of e-commerce platforms Creation of Specialized, independent procurement agencies Business intelligence modules New laws incorporating best practices Professional development of public procurement officers 2002 Publication: “Efficiency and transparency in the public sector – advances in public procurement in Latin America and the Caribbean 2002 – 2012

LAC Public Procurement Market - Results of Reforms Before Reforms 10 years after Percentage of market published on the internet <20% 70% Amount of business opportunities available on the internet <US$150bn US$560bn Annual savings through the use of inclusive procurement methods $0 US$30bn Participation of bidders Baseline 300% LAC countries with SME promotion programs* Baseline 81% Participation of Small and Medium Size Enterprises (SME) <10% 60% Countries with legislation to promote participation by under-represented market segments Baseline 42% * 2 countries have programs supporting women participation on public procurement (Dominican Republic and Ecuador). 1 Country is implementing an inclusion policy with specific actions supporting women (Chile)

LAC Public Procurement Market – Future Challenges Foster more competition in public procurement markets Eliminate barriers to entry Work with private sector in order to do reduce transaction cost, making enterprises more competitive Develop strong E-GP Platforms and procedures that allow to do BI in order to take better decisions Design a set of KPI for Public Procurement System in order to follow-up how national systems are performing Develop a methodology that would allow to measure, in an objective manner, the impact of the inclusion of secondary objectives in Public Procurement Establish a strong accountability policy that includes open data (in proper formats)   Mexico, Chile and Ecuador they do have BI platforms. Some other countries like Uruguay and Peru have monitoring systems. Paraguay just launched their OpenData portal. We have room to keep improving.

Key Public Procurement Reforms during Past Decade Achieving strategic goals Value for money Contribute to achieving public sector’s goals. Public procurement is used as a mean to create jobs, strengthen the industry, support SMEs, promote regional development, innovation and sustainability Accountability Not only price is important (or price / quality), but that the value of goods and services acquired contribute to the substantive functions of the organization Efficient use of resources The main objective is to show that the work is being done well; that G&S are being acquired under the principle of best value for money and there is no waste of resources Monitoring and Compliance Supply and delivery of goods and services It involves not spend more than necessary or obtain the maximum amount of G&S given a fixed amount of money The regulatory compliance becomes the key element to prevent fraud and corruption Obtaining the goods and services required in the quantities, time and place needed

Inclusive access : Foster Competition IDB financed procurement processes - Key Principles Efficiency Economy Transparency Inclusive access : Foster Competition Procurement processes are open to all bidders with the capacity to execute the contract: Pass / Fail evaluation criteria levels the playing field for SMEs All processes are widely advertised All bidding documents are either free or affordable for potential bidders.