El Salvador: MSEs to Be Included in Public Procurement

Proposed reforms to the country's Acquisitions and Contracts law, combined with a $1.4 million investment, would enable MSEs to bid for government contracts.

Friday, April 15, 2011

If the bill is approved by congress, the government procurement, acquisitions and contracts law (known as Lacap in Spanish) MSEs would obtain 12% of state purchases.

El Salvador's Ministry for the Economy, in partnership with the country's commission for micro and small enterprises (MSEs), is holding meetings with businesses with the aim of training them in public procurement processes.

Ileana Rogel, executive director of the MSE commission (known as Conamype in Spanish), told Elmundo.com.sv that, "it hopes to provide a favorable framework for MSEs, which is why it has developed a series of proposed reforms to the Lacap law with the aim of improving the contractual processes and enabling more MSEs to participate in government procurement".

More on this topic

El Salvador: Reforms to Public Acquisitions Law

September 2010

One of the proposed reforms is to increase the amount of the direct purchases from $16,000 to $32,000.

Another modification to the Law of Acquisitions and Contracting of the Public Administration (LACAP for its acronyms in Spanish) tries to eliminate excessive red tape in most procedures, give more transparency to the bidding processes and to include more SMEs (small and medium businesses) in these processes.

SME Law in El Salvador for 2011

November 2010

By year's end, the draft would be ready for submission to the National Assembly in early 2011.

The National Commission for Micro and Small Enterprises (CONAMYPE) went through the last stage of consultations for the proposed law for micro and small enterprises (SMEs).

During this phase, meetings have been held with trade associations, financial intermediaries and others, and is the latest step in presenting the bill to the Legislature later this year or early 2011. "We would expect a good reception by the Legislature so this law can become a reality by middle of next year, or before," said Ileana Rogel, Director of CONAMYPE to Laprensagrafica.com.

Salvadoran President Proposes Amendment on Law on Tenders

July 2011

Mauricio Funes has proposed eliminating the restriction for public official to participate in state tenders.

If President Mauricio Fune’s request is approved, state officials who are partners, shareholders or private owners of companies would be able to put their companies forward to compete for the award of public tenders.

El Salvador Analyzes Brazilian Public Purchasing Model

August 2010

The National Commission for Micro and Small Enterprises (CONAMYPE in Spanish) is evaluating the Brazilian model for inviting tenders from MSEs.

Mario Cerna, El Salvador's vice-minister for commerce, stated that this was one of the main objectives of his recent visit to Brazil.

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