Costa Rica national assembly passes public procurement bill

Costa Rica’s national assembly has passed the public procurement bill, which could save the country 1.55% of GDP annually through efficiency gains, according to the comptroller general.

The bill now requires President Carlos Alvarado’s (pictured) signature, but will become law only in November 2022. It regulates public contracts and speeds up the procurement process.

Lawmaker Carolina Hidalgo was quoted by daily El Financiero as saying that the law enables “fundamental time savings in the purchase of services and in the generation of infrastructure.”

The law regulates the contracting process, reducing the comptroller’s workload, which currently has to set contract guidelines aside from investigating irregularities.

Procurement procedures differ widely among state companies such as electric utility ICE, railway institute Incofer, or public services firm ESPH.

Under the law, state entities may collaborate but one player must be responsible for at least 70% of contractual work.

Poor use of resources can result in fines, depending on the stage a proposal is in.

Terms and amounts defined in signed contracts may only be changed by 20%, or 50% in exceptional cases, compared to 100% under current regulations.

In related news, maximum terms for airport concessions were increased to 50 years from 25 years.

According to the BNamericas database, three airports are under development: Orotina, Limón international airport, and the Huetar Norte facility.

Photo credit: Costa Rica government